TC2000 Presentation AAII

TC2000 Introduction : 

TC2000 Introduction TC2000.com 1-800-776-4940 Vas Madhava vas@pobox.com Aug. 12, 2006

Overview: 

Overview Background Technical Analysis Basic TC2000 Functions EZScans & PCFs My favorite setups Current setups/Recent Real trades Questions

Why Bother ? … Compounding: 

Why Bother ? … Compounding LOSSES: GAINS:

Investment Success : 

Investment Success Selection Strategy Money Management/ Portfolio Design Psychology

Primary Uses of Technical Analysis: 

Primary Uses of Technical Analysis Risk Management Identifying Opportunities Define Entry and Exit Points: Initial Stop Trailing Stop Time Stop Loss Profit Target Support and Resistance Moving Averages Candlestick patterns Trend line breaks Chart Patterns Indicators – Stochastics Identify market psychology

Charting Packages: 

Functionality Cost of Program Cost of Data Feed – End of Day and Real Time Ease of Use Wide user community Extensibility Charting Packages Low End Middle End High End Telechart MetaStock eSignal, QCharts Advanced GET TradeStation Factors to Consider: Pgm: Free Data: $30/month EOD $99/mo Real Time Pgm: $500-$1K Data: $50/month Pgm: Free Data: $99/month RT

TC2000 Pricing : 

TC2000 Pricing Current Name: TeleChart 2005 Company: Worden Brothers, Inc. Two versions: Gold: End of Day/20 Mins Delayed data Cost: 29.99/mon $299/year $539/2 years Platinum: Real Time Cost: $99.99/mon $999/year $1799/2 years Groups, Live Chat with Wordens, News

TC2000: 

TC2000 +’s -’s

TC2000 Resources: 

TC2000 Resources Online Resources– http://www.worden.com/training Discussions, Videos, PCF issues, etc. Worden – Books, Videos, Advanced Training PCFs and Ideas – tradeon.com Yahoo Groups: telechrt2005Users at groups.yahoo.com. Also has primers on various concepts. (2K users, 8K msgs) Backtesting Tool – TCCompanion – Traids.com ($25/month)

My Take on Selecting Stocks: 

My Take on Selecting Stocks Fundamental Technical Returns Psychology (slightly contrarian) TC2000 <30 mins/day View/Manage Existing Positions Stock Criteria (Price, Cap,IndusG, %fromHi) Lists: IBD, Value Line, Tobin Smith … Recent IPOs IBD IBD IBD IBD IBD

Triple Stochastics Entry Setup: 

Triple Stochastics Entry Setup Loss Point: 1-5% Below Low My Entry (Triple Stochs) Risk Stochastics Xover 20

Applying the Setup: Probability  Reward: 

Applying the Setup: Probability  Reward Long Term Investing vs. Short Term Trading Buying into a Trend – Established Trends Go Long on dips in a Rising Trend Short Rallies on a Declining Trend Getting into a newly developing Trend Breakouts and Breakdowns – Low Prob, High Reward Breakdowns on overbought conditions

Favorable Conditions: 

Favorable Conditions Mid/Big Cap stock High Return Stocks I00P stock IBD Stock In Trend Bouncing off a major moving average 40MA, 50MA, 200MA, 500MABe careful Volume surges Volume on the recovery High Vol: Above 20 day or >3x’s Average Volume Above all major MAs Reversal Candlestick patterns Abandoned babies, Doji, Bullish Engulfing, Hammers, Spinning Tops Past Failures – look for Double Bottoms Look for Divergences (TSV) Favorable Industry Group Oversold on Weekly Time Frame Misc: BOP

Reversal Candlestick Patterns : 

Reversal Candlestick Patterns

Things I look for: 

Things I look for Volume surges at oversold and overbought areas Topping and Bottoming patterns Way overbought conditions (esp. IBD stocks) Moving average crossover failures Emerging trends Recent IPOs being accumulated High Probability candlestick patterns …

Lessons Learned: 

Lessons Learned Always be critical of anything/everything you hear Learn to be both Long and Short Low Dollar Real Trading beats Paper Trading Don’t have too many positions on Smart stop management Focus on low risk entries Learn to take profits Really understand charts and investor psychology Have a good system to manage your positions (I prefer Access)