Have you considered day trading? Does the thought of it make you uneasy because of what you have heard or read in trading books or financial blogs? For example, have you heard the noise that 9 out of 10 day traders lose their money? With so much noise surrounding the market you have to learn to tune out the noise and focus on what matters. Successful day trading does not require a $100,000 account or a Phd in market indicators. You need an account with at least $25,000 (to satisfy SEC pattern day trading rules) and a successful method you fully understand. I have proven my method over the last year day in and day out. I have taught it to other traders who are also finding success. Daily I give my members my selection of stocks and document my trades real time. So is successful day trading a myth? Not really. Although, there are no guarantees in life I am on target to hit my years goal of a 325% return (331% hit Sept 30). If you decide to join Tumbler Trades (Ace Level) I will gladly teach you how I am doing it.
BACKGROUND
Tumbler Trades was created recently as a place where day traders reside and trade. In 2009 Tumbler (me) became a member of a very popular swing trading website, Stockbee.biz. During that year I observed the powerful moves of stocks with momentum and I taught myself to day trade them.
Swing traders look for a reason to enter a stock position. There could be many reasons such as a significant earnings surprise, a new product or service, such as the latest “Iwow” from Apple. Or it could come from a scan of the stock universe that alerts them to a potentially powerful move which is currently under way. They learn all about stock patterns, support, resistance and countless other technical analyses to guide them. Then they read Investors Business Daily on a regular basis to keep themselves “company/market informed.” As previously mentioned, they use scanning software and a myriad of alert systems to let them know when it is time to enter. This is all very fine but after they enter the swing trade they are at the mercy of the market and other stock specific factors. For example, if you do everything right in a raging bull market and there is bad company news tomorrow your trade is subject to failure. When the market is strong swing traders generally do well. If the market is not doing well or is in correction then they are wise not to take the position at all. When good company news comes along during a market correction good swing traders may avoid the trade and the news is lost to the market. I try to avoid all this by day trading.
In April of 2010 the market went into correction and the trading on Stockbee where I was a member stopped. That is when I started going long every day and posting my trades real time. As the correction deepened I continued going long and began to gather some notoriety. Not only did I post entries and exits real time but I also posted my end of day results and monthly totals. My trading was highlighted multiple times by Stockbee and I began to mentor members who were swing traders but wanted to learn my day trading methods. I also wrote articles about my methods and Stockbee gave me a lifetime membership. “How to trade like Tumbler” was a recurring theme at Stockbee and I was encouraged by him to join a professional trading firm. Give credit where credit is due; it was Stockbee that started me on this journey and my entire method is based on what he taught me. That said, I had no desire to trade at a professional firm; all I wanted to do was day trade my own money and mentor my method. There were occasional all night sessions on the website where I discussed my method with several members.
In March 2011 I realized that I was no longer interested in swing trading at all so the question became, “what am I doing on a website dedicated to swing trading.” Tumblertrades.com (now followtumblertrades.com) was born the next day.
METHOD
Tumbler Method (the T) is comprised of three major components:
- Stock selection (the PAD and PAD GOLD)
- Intra Day Trading
- Capital Preservation
Stock selection involves reading the news every day and preparing a list (PAD) of from 10 – 20 stocks with a strong news catalyst and the potential to move up that day. PAD GOLD is an ongoing list of stocks with strong news catalyst that demonstrate ongoing profit potential day in and day out. I publish this list every trading day on the by 9:15 AM. Aces also receive it by email.
Trading: I use a 15 minute time frame and a 4 & 8 exponential moving average (the 4 & 8). The 4 & 8 are not used as typical methods teach, they represent support and resistance in our method of day trading.
Recently I began using the one hour time frame for trading. This method is especially appropriate for limited or restricted traders wanting to day trade and strongly resembles swing trading. The difference of course is in most instances the swing trade ends with an exit signal which I teach or the end of the day comes around.
The two methods are called the 15/4 and “guns.” Their are identical in their rules and application in our daily trading. We call the method, whether trading the 15 or guns, the “T”
Capital Preservation: A major component where I teach to sell the strength (protect the profit you have already made) and quickly sell those trades that are not working. We do not look for long running winners although we get them often enough. A major key to our trading is to make the profit and take the profit. We call this “bricks.”
In general, that is my method and I have taught it to the “Aces.” Currently there are 48 “Aces” in various stages of mentorship. Many have become successful and I share their successes often on the blog and in emails.
GOAL
This year my personal ROE goal is 325% (ended the year earning 459%). I trade real time right in front of you and document my daily trading results as well as monthly ROE on the blog under the ROE tab. Membership to our site has two levels.
- Crew Level: $150 per quarter with full access to the blog
- Ace Level: $250 per quarter adds mentoring via email. Currently their are 113 Aces with usually 25 to 50 on the blog during the trading session
Watch Command Central as I move in and out of trades’ real time. And I am not alone, far from it. Interact with the “Aces” and “Crew” subscribers as they post their trading ideas and actual trades real time. See the ideas of others like Rj, Bill, Stkb, Richard, Sue, Vegas, Ms. Jones, and others; the list is growing.
I make you no guarantee of success. Many follow my trades and do well, but they do not make as much as I do. Many (if not all) take my teachings and meld them with their own methods. Others continue to swing trade and day trade on days they think the market is correcting. Tumbler Trades is based on my method but is also a community focused on day trading the market. Give a man a fish and he will eat for a day; teach a man to fish and he will eat forever. Join followtumblertrades.com (7 day free trial) to see my progress, get great trading ideas and actual trades from the community; become a fisherman.
ABOUT YOU
The site is for day traders and for those who want to learn to day trade the way I do. During the trading session your comments will be limited to trading ideas, actual trades and some light talk. Save the rest for pre session or after the market closes at 4. Also, we are not interested in things like options, oscillators or indicators, or astrology, etc., etc. We are trading based on momentum and for profit. The rest of it is simply noise. Finally, if you have been called a “PIA” or are constantly negative about the market followtumblertrades.com is not for you. “Buy the set up, sell the strength, tomahawk the losses, build your house with bricks,” that is our motto and that is all we do…
Legal Stuff
Disclaimer
A part of what I offer may include market analysis. All ideas, opinions, and/or forecasts I express or imply, through any means of correspondence, are for informational or training purposes only. My correspondence or blogging should not be construed as recommendations to invest, trade, and/or speculate in the markets. I am sharing with you my pad, my method of trading, and my experiences. I am in not recommending you invest in any particular trade. Any investments, trades, and/or speculations you make in light of my ideas, opinions, and/or forecasts, are committed at your own risk, financial or otherwise. I am not an investment adviser, the content of my correspondence with you is not an endorsement to buy or sell any securities.
Intellectual Property
No portion of my written work, to include but not limited to every email or attachment sent by me, may be copied or shared, by any means, electronic or otherwise, without the express written permission of me, Steve Ferrell.
Privacy
I will not share your identification or contact information with any person or entity. For training purposes only, I may ask you if I can share with the other students a question or response you have sent me. If you consent to my sharing your question or response with the other students it is your prerogative to not have your name mentioned. Simply inform me that you consent with my sharing your question or response but prefer to remain anonymous.