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STT Short Term Trader
Fred H. Schlereth, Editor
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How to use the TradersWeb STT Advisor 
  • Identify stocks appropriate for short term trading based on our recommendations.
    For "buys" the following procedure has produced good results. Short selling is the converse.
  • Determine an appropriate price. If the open is significantly above the close of the previous day then watch the stock during the day for a pull back. If this does not occur, wait for another opportunity.
  • If the price is reasonable, buy and set a stop price. Never buy without a stop loss strategy. The best way to establish a price for the stop is to look at the recent price history. Set a stop at about the lowest price for the past couple of days. It is wise to avoid limit sell orders. Setting a 'mental' stop should give sufficient protection.
  • Once a position is taken, then follow our technical indicators (available to subscribers only) each day, watching for a turnaround.

We publish four signals; 'up', 'dn', 'cu', 'cd. The first two say that the stock price is likely to move in the indicated direction. The latter two are more subtle. A 'cu' indication says to watch the stock price for the immediate future, looking for a falling price.

However, because we consider only strong companies, it is prudent to allow some margin, say 10%, before closing a position. The reason is that very often there are a slew of traders waiting in the wings to buy on weakness. This drives the price up again.

However at other times there is a genuine event which affects the price of otherwise strong companies adversely; e.g., the recent Asian crisis. Since we often anticipate such events, our signals can be very profitable; by selling and then repurchasing on a subsequent upward indication. Study of our past examples will reveal many such opportunities.

A 'cd' works the same way, except for the direction of movement.

We have compared our service with other popular services based on momentum indicators and found that we have an equivalent success rate but that we are significantly earlier in making our predictions.
Anticipating market moves is the most important factor in successful short-term trading. The Graphs show many examples of the efficacy of our technical indicators.

We hesitate make claims of actual profits because trading on the basis of the information we present depends so much on personal trading styles.

Finally, remember that past success is no guarantee of future success. The Graphs also show some examples (not many) of cases in which our indicators have failed us.



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