Profit From Every Market Direction - Up, Down, or Sideways by:Michael Calhoun, Juris Doctorate

Most investors profit when a stock, index, or commodity goes up

. But the market never goes straight up or down, but worms up and down on its trend in one direction or the other.

Most investment dollars are left on the table when the market pulls back, or, worse, changes direction in trend altogether against your invested expectation.

It is possible to limit your exposure to the direction you expect, or better yet, to profit from the inevitable up and down swings, and climax your returns.

The Dow lost -25% in the last ten years. The S&P 500 and the Nasdaq-100 were both down -41%. You would have done better to short them (investing in their expected decline); but your gain would have not been worth the wait.

It was perfectly possible to safely and reliably trade these indexes on average 2 times a month and make as much as 1,205% in the same period from the Nasdaq-100 alone. Through trading when the market is trending up, and shorting when the market is trending down, these profits are provably obtainable, and I do that - prove it - with the application of my thoroughly researched swing trading algorithm THE MARKETCODE. Ten years of historical price data from the Dow, the S&P 500, the Nasdaq-100, GE, Microsoft, Boeing, and much more, including commodities like currencies all generate tremendous profits in all market conditions.

Trading rules generating specific buy prices, sell prices, and stop loss prices, are required to succeed in swing trading. Once trading rules are researched and established they can be tested against the historical prices of any market instrument. And the trading rules will either prove itself profitable or a disaster to be modified until proven a success, and hopefully a big one.

No trading system is complete without a stop loss - that is, a price at which a trade is (1) either exited at a loss because the market is going against your expectation, or (2) exited at a profit because the market trend has reversed and profits need to be protected. No system generates winning trades without exception; and you can ride loosing trades to ruin without a stop loss.

Use or develop trading rules that work on your market; and follow them religiously. I'm partial to THE MARKET CODE (http://www.themarketcode.blogspot.com) because back tested proof of success, the results are stunning on every time line, and the cost is a mere $67, where other unproven swing trade systems are sold for thousands. See http://www.themarketcode.blogspot.com for 1, 3, 5, and 10 year returns for the Dow, the S&P 500, the Nasdaq-100, Microsoft, GE, Boeing, and much more!

Make sure trading rules generate precise buy, sell, and stop loss prices. Ten years of back testing allows for virtually all of an instrument's price fluctuations, and assures success if you have mastered a set of successful trading rules, or a trading algorithm, that profits throughout the 10 years. And then profit in up, down, and sideways markets turning stocks, indexes and commodities into large gainers no matter which direction they the traded market wonders.

About the author

Michael Calhoun, Juris Doctorate, is a commodities trader on Bainbridge Island, Washington, just East of Seattle. He owns THE MARKET CODE, and manages a private hedge fund traded with the THE DAY TRADE CODE, a day trade adaptation of THE MARKET CODE.

http://www.TheMarketCode.blogspot.com

http://www.articlecity.com/articles/business_and_finance/article_10451.shtml

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