In the mid 1980's, I studied every book on investing that I could find.
I evaluated every trading system they proposed, and rejected them all.
I learned how the markets worked, but I didn't find what I was looking
for in any of the books. I was looking for a mechanical system, that
would select the stocks, and trigger buy and sell signals. I had
concluded that I needed a system that would remove emotion from my
trading, to be successful. When I was not able to find such a system
that worked more than half the time, I decided to develop my own.
It took me many months of research, to develop a methodology that would
make it easy to pick the stocks. The stock selection methodology is
based on the company's earning power. Gathering the information to
evaluate each company, was time consuming and tedious. Today, we are
very fortunate to have the proprietary data provided by "Investor's
Business Daily." This data makes stock selection so much easier, as
detailed in Section I.
Four years later, I was convinced that I had developed the best trading
system possible. The next step was to translate my embryonic system
into a computer program. One that would trigger mechanical buy and sell
signals. I hired a computer programmer to develop a computer program
implementing my system. I then spent many months entering data into it,
by hand, and back testing it. Later, I ordered a charting service and
daily data from "TC 2000®." This eliminated entering the daily data
manually. After more research, using the indicators "TC 2000®" provided,
I was able to fine-tune my system.
Several years ago, I began using charts from "Quotes Plus®," and I like
the technical indicators that they provide even better. I have selected
the best ones, to confirm the mechanical signals generated by the
TradeSmart System. These confirming indicators will give you more
confidence. Any trader, who allows his emotions to cloud his judgment,
will find trading very difficult. This is another reason that so many fail.
I believe that I have developed a trading system, which will allow you
to trade objectively. It has been devised to keep you completely out of
any market, or stock, that is either in a correction, or a narrow trading
range. This was my ultimate goal.
The trading results have been even better, than I had hoped to obtain,
when I began my research. I feel that I have achieved exactly what I set
out to do. I have been using this system for years, but had not made it
public, until we released the third version of this manual in 1999.
If you are new to trading, this manual will help you to avoid the mistakes
that most novice traders make. It is my sincere wish, that you will have
great success trading, and that it will be fun as well.
