To win in the stock market the investor must have the odds in their favor. The stock market is a numbers game. And you can have the numbers in your favor, but you need the tools.
RTT is short for readtheticker.com
Below is a quick reference. more detail is available via links on the jump.
1) Have a bird's eye view of the market in all aspects.
There is no better way to cover this topic than Jesse Livermore quote.
2) Sound money management principles.
An investor must manage risk. Its better to have many small positions rather than a few large ones. Losses must be paid for by profits. See the percentage win required to cover a loss:
3) Apply Wyckoff market phases and laws to 'read the tape'.
Understanding Richard Wyckoff tape laws and market phases allow you to see the supply and demand battles within price action. Know stock market terminology: Accumulation, distribution, selling climax, cause, effect, path of least resistance, etc. Plus the application of relative strength to stock selection was a great friend to Richard Wyckoff.
4) Use option strategies with +75% chance of winning.
Simple option strategies can give you odds of success (per trade) up to 95%. Learn about selling or buying premium, bear or bulish spreads, Iron condors, Calendar spreads. Readtheticker.com is not an options learning center. We do provide a 'Option Probability Cone' with our toolset (see chart). Selection an option strategy will be based on your view of the market: direction, cycle peak or trough, accumulation, distribution, trend status, etc. Readtheticker.com has the toolset to answer these questions. Retail investors can reach great heights as option trades, please review posts: Karen Super Trader, Chuck Hughes 7 Times World Trader Champion.
Readtheticker.com Option Probability Cone example..
5) Find statistically significant dominant Hurst cycles.
To know the dominant Hurst cycle that is statistically significant, is better than not knowing it. Combine cycle action with option strategies is a very good approach.
Hurst Cycle on EURUSD (FXE etf)
6) Use Gann Angles for trend confirmation.
Gann angles are not trendlines, they only require one pviot and not two, there is no adjustment when another pivot forms. Gann angles represent the pace of price relative to time. Gann Angles are excellent trend following tools.
7) Apply RTTTrendStatus for trend status.
Our simple RTTTrendStatus tool, has in the past express over brought and over sold levels with great accuracy on the SPY. It will again!
8) Follow NYSE Advance and Decline data via RTT Market Timer.
The NYSE Advance and Decline has many secrets. Knowing how to time the market with this data set is critical. Readtheticker.com has a custom RTT Market Timer that has worked for 30 years.
9) Study the RTTVolumeWave for bullish and bearish pressures.
Price to volume action is very important. Price wave to volume is even more so. See more on RTTVolumeWave after the jump.
