The Structure of Successful Trading

June 13 - 14, 2010

The Structure of Successful Trading

You will study and work with Dr. Alexander Elder for two full days. His book Come into My Trading Room is required reading prior to attending the mini-Camp. It will serve as a baseline, the shared starting point for everyone, but Dr. Elder will move far beyond it and teach you the latest methods of market analysis, trading systems, risk control, and more. If you do not have this book, we offer them to campers at a discount.

We will work with current charts, using a live data feed and a projector. There will be plenty of time for questions and answers. We keep our group small to ensure that you receive individual attention. You are welcome to bring up your important trading questions.

DAILY PLAN:
(subject to minor changes)

Sunday, June 13

- before 10:30 am – a walk in the park, enjoy a selection of cakes on arrival
- 10:30 – 11:40 class
- 11:50 – 13:00 class
- 13:00 – 14:15 lunch
- 14:15 – 15:45 class
- 16:00 – 17:30 class
- 19:00 – dinner for campers and spouses with Dr & Mrs Elder

Monday, June 14

- before 9:30 am – a walk in the park, breakfast
- 9:30 – 10:45 class
- 11:00 – 12:30 class
- 12:30 – 13:30 lunch
- 13:30 – 14:45 class
- 15:00 – 16:30 class

Mini-Camp Outline:

DAY ONE: Preparation

1. Brief introduction to the key methods of analysis and decision-making

•  Psychology – individual psychology of a trader vs mass psychology of market crowds

•  Methods of market analysis: focus on technical analysis

• Looking for opportunities in the gap between price and value
• Triple Screen trading system
• Combining trend-following and counter-trend methods
• Trading opportunities at the edges of congestion zones
• The Impulse trading system

•  Risk control and money management

• Trade sizing
• The Iron Triangle of risk control
• Placing stops – bracketing your trade
• The Iron Triangle of risk control
• Types and degrees of risk

•  Record-keeping – the cornerstone of trading success

‘show me a trader with good records – and I will show you a good trader!'

• A trading diary
• An equity curve

2. Review of current markets

• Introducing ‘the homework spreadsheet'
• Fundamental and technical information
• Bonds, currencies, key commodities (gold, oil)

3. Identifying promising stocks for the days ahead

• Finding sources of trading ideas
• How to handle tips
• SpikeTrade as an idea generator
• Creating scans
• Filtering out stocks to be avoided

4. Creation of a trading plan for selected stocks
(an interactive exercise)

• Setting risk parameters
• Planning entries, targets, and stops
• Documenting the plan

DAY TWO: Trading, Analysis, Review

1. Review of the previous evening's plan

• Stability vs. change: adjusting to overnight news and developments
• Handling technical changes within ‘the iron triangle'
• Documenting changes

2. Placing, monitoring and adjusting orders
(this theme will be addressed throughout the day)

• Setting up alerts and alarms
• Giving the trade enough room – but not too much
• When a day-trade can be changed into a position trade
  (hint: not when it is a losing trade!)

3. Documenting trades

• Trading diary as a control tool
• Review of closed trades
• Keeping a trading diary as a continuing education process

OPTIONAL:

Time permitting, the following topics may be addressed:

• Developing discipline
• Selecting a trading method that fits your personality
• Trading futures
• Handling options
• Trading in solitude vs trading in a group
• Identifying turning points
• Disaster recovery plan
• Multiple Q&A