Free Options Picks Of The Week

Options Picks for 5/14/09

ACTION TO TAKE TODAY

1st Trade:
Immediately go long BIIB by buying the BIIB July 09 $50.00 Calls (IDKGJ) up to $3.10. After getting filled, place a good til canceled (GTC) order to sell IDKGJ at $4.20 for a 36% gain. Also, place a stop loss at $47.92, which means if the security (BIIB) hits $47.92, you exit the trade with a small loss. If the stock takes off, then place a trailing stop of 10% instead of a GTC and ride it to higher profits. 5/21/09. Position reached target of $4.20 on 5/20/09 for a 36% profit. Position held for 7 Days.

2nd Trade:
Immediately go Short TDW by buying the TDW June 09 $40 Puts (TDWRH) up to $1.45. After getting filled, place a good til canceled (GTC) order to sell TDWRH at $2.00 for a 38% gain. Also, place a stop loss at $46.39, which means if the security (TDW) hits $46.39, you exit the trade with a small loss. If the stock takes off, then place a trailing stop of 10% instead of a GTC and ride it to higher profits. 5/21/09. Position closed on 5/20/09 with a loss of 20 cents or 14%. If a 10% trailing stop were used since the stock took off on day one, then position closed with a 17% profit with a fill of $1.45 and a close of $1.70. Position held for 1 Day.


3rd Trade:
Immediately go Short DIA by buying the DIA June 09 $87.00 Puts (DAVRI) up to $5.40. After getting filled, place a good til canceled (GTC) order to sell DAVRI at $7.30 for a 35% gain. Also, place a stop loss at $84.34, which means if the security (DIA) hits $84.34, you exit the trade with a small loss. If the stock takes off, then place a trailing stop of 10% instead of a GTC and ride it to higher profits. 5/21/09. Option opened at $5.40 on 5/14/09 and traded down to $5.00 before taking off to $5.70 on the next day. If a 10% Trailing stop were used, then position would have closed the next day for $5.10 and a loss of %15. Position held for 2 Days.


A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It's the equivalent of going long the stock -- without the big risks that buying entails.


Options Picks for 3/26/09

ACTION TO TAKE TODAY

1st Trade:
Immediately go long FCX by buying the FCX May 09 $45.00 Calls (FCXEI) up to $3.80. After getting filled, place a good til canceled (GTC) order to sell FCXEI at $5.20 for a 36.8% gain. Also, place a stop loss at $39.63, which means if the security (FCX) hits $39.63, you exit the trade with a small loss. If the stock takes off, then place a trailing stop of 10% instead of a GTC and ride it to higher profits.

A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It's the equivalent of going long the stock -- without the big risks that buying entails.

What you do here is, if you do your homework and agree that the security is bullish, you take a long position in FCX by buying a call option betting that the stock will go up. You will pay up to $3.80 per stock which means that one option will cost you $380.00 plus commission and fees. Remember, every option contract contains 100 shares.

2nd Trade:
Immediately go long CAT by buying the CAT AUG 09 $31.00 Calls (CXJHE) up to $3.80. After getting filled, place a good til canceled (GTC) order to sell CXJHE at $5.20 for a 36.8% gain. Also, place a stop loss at $29.59, which means if the security (CAT) hits $29.59, you exit the trade with a small loss. If the stock takes off, then place a trailing stop of 10% instead of a GTC and ride it to higher profits.

A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It's the equivalent of going long the stock -- without the big risks that buying entails.

What you do here is, if you do your homework and agree that the security is bullish, you take a long position in CAT by buying a call option betting that the stock will go up. You will pay up to $3.80 per stock which means that one option will cost you $380.00 plus commission and fees. Remember, every option contract contains 100 shares.

3rd Trade:
Immediately go long JOYG by buying the JOYG JUL 09 $25.00 Calls (JQYGZ) up to $3.80. After getting filled, place a good til canceled (GTC) order to sell JQYGZ at $5.20 for a 36.8% gain. Also, place a stop loss at $22.17, which means if the security (JOYG) hits $22.17, you exit the trade with a small loss. If the stock takes off, then place a trailing stop of 10% instead of a GTC and ride it to higher profits.

A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It's the equivalent of going long the stock -- without the big risks that buying entails.

What you do here is, if you do your homework and agree that the security is bullish, you take a long position in JOYG by buying a call option betting that the stock will go up. You will pay up to $3.80 per stock which means that one option will cost you $380.00 plus commission and fees. Remember, every option contract contains 100 shares.

Options Picks for 2/6/09

ACTION TO TAKE TODAY

Immediately go long FXI (China IShares) by buying the FXI May 09 $27.00 Calls (FXIEA) up to $3.80. After getting filled, place a good til canceled (GTC) order to sell FXIEA at $5.20 for a 36.8% gain. Also, place a stop loss at $25.70, which means if the security (FXI) hits $25.70, you exit the trade with a small loss. If the stock takes off, then place a trailing stop of 10% instead of a GTC and ride it to higher profits. 2/6/09. Position didn't trigger since the option opened at $3.90 with the stock gap, which was higher than our entry point of $3.80.


A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It's the equivalent of going long the stock -- without the big risks that buying entails.

What you do here is, if you do your homework and agree that the security is bullish, you take a long position in FXI by buying a call option betting that the stock will go up. You will pay up to $3.80 per stock which means that one option will cost you $380.00 plus commission and fees. Remember, every option contract contains 100 shares.

Options Picks for 1/29/09

ACTION TO TAKE TODAY

1st Trade:
Immediately go long MHP (MCGRAW HILL COMPANIES INC) by buying the MHP May 09 $22.50 Calls (MHPEX) up to $3.30. After getting filled, place a good til canceled (GTC) order to sell MHPEX at $4.50 for a 36.4% gain. Also, place a stop loss at $20.70, which means if the security (MHP) hits $20.70, you exit the trade with a small loss. If the stock takes off, then place a trailing stop of 10% instead of a GTC and ride it to higher profits. 2/6/08. Position got to target with a profit of 49.2% and a fill of $2.95. Position sold for $4.40. Position held for 8 days.


A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It's the equivalent of going long the stock -- without the big risks that buying entails.

What you do here is, if you do your homework and agree that the security is bullish, you take a long position in MHP by buying a call option betting that the stock will go up. You will pay up to $3.30 per stock which means that one option will cost you $330.00 plus commission and fees. Remember, every option contract contains 100 shares.

2st Trade:
Immediately go long CVD (COVANCE INC) by buying the CVD May 09 $45.00 Calls (CVDEI) up to $2.80. After getting filled, place a good til canceled (GTC) order to sell CVDEI at $4.20 for a 50% gain. Also, place a stop loss at $35.00, which means if the security (CVD) hits $35.00, you exit the trade with a small loss. If the stock takes off, then place a trailing stop of 10% instead of a GTC and ride it to higher profits. 2/8/09. Change Stop Loss to $40.85 or the option Trailing Stop Loss at 10%. 3/7/09. With a fill of $2.50 on 1/29/09 and an option stop loss of 10%, position closed at $3.15 on 2/5/09 with a profit of 26%. If a stock stop loss of $40.85 was used, then the option was closed on 2/17/09 at $2.75 with a profit of 10%.

A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It's the equivalent of going long the stock -- without the big risks that buying entails.

What you do here is, if you do your homework and agree that the security is bullish, you take a long position in CVD by buying a call option betting that the stock will go up. You will pay up to $2.80 per stock which means that one option will cost you $280.00 plus commission and fees. Remember, every option contract contains 100 shares.

Options Picks for 1/22/09

ACTION TO TAKE TODAY

1st Trade:
Immediately go long BP (British Petroleum) by buying the BP Mar 09 $40.00 Calls (BPCH) up to $4.70. After getting filled, place a good til canceled (GTC) order to sell BPCH at $6.40 for a 36.2% gain. Also, place a stop loss at $41.00, which means if the security (BP) hits $41.00, you exit the trade with a small loss. If the stock takes off, then place a trailing stop of 10% instead of a GTC and ride it to higher profits. 1/23/09. Position got stopped out with a loss of 6.7% with a fill of $3.75 (If you got filled since the stock gapped down). If you had used a stop loss at $41.00, you would have sold the position at $3.50. Position held for 1 day.

A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It's the equivalent of going long the stock -- without the big risks that buying entails.

What you do here is, if you do your homework and agree that the security is bullish, you take a long position in BP by buying a call option betting that the stock will go up. You will pay up to $4.70 per stock which means that one option will cost you $470.00 plus commission and fees. Remember, every option contract contains 100 shares.

2nd Trade:
Immediately go long MATK (Matek) by buying the MATK Mar 09 $30.00 Calls (KQTCF) up to $1.65. After getting filled, place a good til canceled (GTC) order to sell KQTCF at $2.30 for a 39.4% gain. Also, place a stop loss at $26.60, which means if the security (MATK) hits $26.60, you exit the trade with a small loss. If the stock takes off, then place a trailing stop of 10% instead of a GTC and ride it to higher profits. 1/23/09. Position got stopped out with a loss of 27.6% with a fill of $1.45. If you had used a stop loss at $26.60, you would have sold the position at $1.05. Position held for 1 day.

A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It's the equivalent of going long the stock -- without the big risks that buying entails.

What you do here is, if you do your homework and agree that the security is bullish, you take a long position in MATK by buying a call option betting that the stock will go up. You will pay up to $1.65 per stock which means that one option will cost you $165.00 plus commission and fees. Remember, every option contract contains 100 shares.

Options Picks for 1/5/09

ACTION TO TAKE TODAY

Immediately go long XRT(Spiders Retail ETF) by buying the XRT Mar 09 $22.00 Calls (XRTCV) up to $2.20. After getting filled, place a good til canceled (GTC) order to sell XRTCV at $3.3 for a 36.4% gain. Also, place a stop loss at $20.57 which means if the security (XRT) hits $20.57, you exit the trade with a small loss. If the stock takes off, then place a trailing stop of 10% instead of a GTC and ride it to higher profits. 1/12/09. Position got stopped out with a loss of 28% with a fill of $2.08. The option went up to $2.17 before it retreated. If you had used a stop loss at $20.57, you would have sold the position at $1.50. Position held for 7 days.


A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It's the equivalent of going long the stock -- without the big risks that buying entails.

What you do here is, if you do your homework and agree that the security is bullish, you take a long position in XRT by buying a call option betting that the stock will go up. You will pay up to $2.20 per stock which means that one option will cost you $220.00 plus commission and fees. Remember, every option contract contains 100 shares.

2nd Trade:
Immediately go long ANR(Alpha Natural Resources) by buying the ANR Mar 09 $20.00 Calls (ANRCD) up to $3.20. After getting filled, place a good til canceled (GTC) order to sell ANRCD at $4.40 for a 37.5% gain. Also, place a stop loss at $17.55 which means if the security (ANR) hits $17.55, you exit the trade with a small loss. If the stock takes off, then place a trailing stop of 10% instead of a GTC and ride it to higher profits. 1/6/09. Position got stopped out with a profit of 50% with a fill of $3.00. The option shot up to $5.00 before it retreated. If you had used a trailing stop of 10%, you would have sold the position at $4.50. Position held for 2 days.

A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It's the equivalent of going long the stock -- without the big risks that buying entails.

What you do here is, if you do your homework and agree that the security is bullish, you take a long position in ANR by buying a call option betting that the stock will go up. You will pay up to $3.20 per stock which means that one option will cost you $320.00 plus commission and fees. Remember, every option contract contains 100 shares.

3rd Trade:
Immediately go long SNDK (Sandisk) by buying the SNDK Apr 09 $12.00 Calls (SWQDX) up to $2.05. After getting filled, place a good til canceled (GTC) order to sell SWQDX at $2.80 for a 36.6% gain. Also, place a stop loss at $10.40 which means if the security (SNDK) hits $10.40, you exit the trade with a small loss. If the stock takes off, then place a trailing stop of 10% instead of a GTC and ride it to higher profits.. 1/6/09. Position got to target with a profit of 40% with a fill of $2.00. The option shot up to $2.80. Position held for 2 days.

A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It's the equivalent of going long the stock -- without the big risks that buying entails.

What you do here is, if you do your homework and agree that the security is bullish, you take a long position in SNDK by buying a call option betting that the stock will go up. You will pay up to $2.05 per stock which means that one option will cost you $205.00 plus commission and fees. Remember, every option contract contains 100 shares.

Picks for 12/16/08

ACTION TO TAKE TODAY
Immediately go long FCX(Freeport McMoran) by buying the FCX JAN 09 $22.50 Calls (FCXAX) up to $3.10. After getting filled, place a good til canceled (GTC) order to sell FCXAX at $4.3 for a 39% gain. Also, place a stop loss at $20.75 which means if the security (FCX) hits $20.75, you exit the trade with a small loss. If the stock takes off, then place a trailing stop of 10% instead of a GTC and ride it to higher profits. 12/17/08. Position got stopped out with a profit of 58.2%. The option shot up to $5.45 before it retreated. If you had used a trailing stop of 10%, you would have sold the position at $4.90. Position held for 1 day.

A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It's the equivalent of going long the stock -- without the big risks that buying entails.

What you do here is, if you do your homework and agree that the security is bullish, you take a long position in FCX by buying a call option betting that the stock will go up. You will pay up to $3.10 per stock which means that one option will cost you $310.00 plus commission and fees. Remember, every option contract contains 100 shares.

Picks for 12/12/08

STAY OUT OF THE MARKET TODAY UNTIL THIS AUTO BAILOUT STUFF IS RESOLVED OR IF THE MARKET MOVES UP EVEN WITH THIS BAD OF A NEWS! IF THE MARKET MOVES UP AND CLEARS THE EVEN POINT, TAKE A POSITION IN DIA (THE DIAMONDS TRUST) BY BUYING ANY FEB 09 IN THE MONEY OPTION. SET YOUR STOP LOSS AFTER GETTING FILLED AND AS ALWAYS, IF THE OPTION TAKES OFF, SET A TRAILLING STOP. OTHERWISE, SET YOUR PROFIT AT 35%.

Picks for 12/9/08

ACTION TO TAKE TODAY
Immediately go long DRYS (Dry Ships) by buying the DRYS MAR 09 $7.50 Calls (OOCCU) up to $3.10. After getting filled, place a good til canceled (GTC) order to sell OOCCU at $4.3 for a 39% gain. Also, place a stop loss at $5.87 which means if the security (DRYS) hits $5.87, you exit the trade with a small loss. If the stock takes off, then place a trailing stop of 10% instead of a GTC. 12/9/08. Position didn't trigger since the option opened at $3.80 with the stock gap, which was much higher than our entry point of $3.10.

A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It's the equivalent of going long the stock -- without the big risks that buying entails.

What you do here is, if you do your homework and agree that the security is bullish, you take a long position in DRYS by buying a call option betting that the stock will go up. You will pay up to $3.10 per stock which means that one option will cost you $310.00 plus commission and fees. Remember, every option contract contains 100 shares.

Options Picks for 12/4/08

ACTION TO TAKE TODAY
Immediately go long SNDK (Sandisk) by buying the SNDK JAN 09 $8 Calls (SWQAH) up to $2.50. After getting filled, place a good til canceled (GTC) order to sell SWQAH at $3.4 for a 36% gain. Also, place a stop loss at $7.97 which means if the security (SNDK) hits $7.97, you exit the trade with a small loss. If the stock takes off, then place a trailing stop of 10% instead of a GTC. ON 12/5/08, SNDK TRADED DOWN TO $7.58 AND THEN RECOVERED NICELY. IF YOU HAVE GOT FILLED AND DID NOT SELL YET, DO STAY IN AND DOUBLE DOWN. IF YOU DID NOT GET FILLED, NOW YOU HAVE A CHANCE TO GET IN AT EVEN A BETTER PRICE. USE LIMIT ORDERS UP TO $2. KEEP YOUR TARGET EXIT AT $3.40. AND AGAIN, IF THE STOCK TAKES OFF, USE A TRAILING STOP INSTEAD OF GTC. 12/9/08. Position got stopped out with a profit of 20%. The option shot up to $3 before it retreated. If you had used a trailing stop of 10%, you would have sold the position at $2.70. Position held for 5 days.

A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It's the equivalent of going long the stock -- without the big risks that buying entails.

What you do here is, if you do your homework and agree that the security is bullish, you take a long position in SNDK (Sandisk) by buying a call option betting that the stock will go up. You will pay up to $2.50 per stock which means that one option will cost you $250.00 plus commission and fees. Remember, every option contract contains 100 shares.

Picks for 11/28/08

ACTION TO TAKE TODAY
Immediately short BBT (BB&T) by buying the BBT Jan 27.50 Puts (BBTMY) up to $2.80. After getting filled, place a good til canceled (GTC) order to sell BBTMY at $3.8 for a 36% gain. Also, place a stop loss at $30.32 which means if the security hits $30.32, you exit the trade with a small loss. Position closed on 12/1/08 at $5.30 for a profit of 89.3%. Position held for 2 days.

A put option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It's the equivalent of shorting the stock -- without the big risks that shorting entails.

What you do here is, if you do your homework and agree that the stock is bearish, you take a short position in BBT (BB&T) by buying a put option (BBTMY) betting that the stock will go down. You will pay up to $2.80 per stock which means that the option will cost you $280.00 plus commission and fees. Remember, every option contract contains 100 shares.

Picks for 11/20/08

ACTION TO TAKE TODAY
Immediately go long C (CITIGROUP) by buying the C MAR 09 $5 Calls (CCP) up to $2.10. After getting filled, place a good til canceled (GTC) order to sell CCP at $3.8 for an 80% gain. Also, place a stop loss at $4.65 which means if the security hits $4.65, you exit the trade with a small loss. Position closed on 11/28/08 at $3.80 for a profit of 80.9%. Position held for 8 day.

A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It's the equivalent of going long the stock -- without the big risks that buying entails.

What you do here is, if you do your homework and agree that the security is bullish, you take a long position in CCP (CITIGROUP) by buying a call option betting that the stock will go up. You will pay up to $2.10 per stock which means that the option will cost you $210.00 plus commission and fees. Remember, every option contract contains 100 shares.

Picks for 11/19/08

ACTION TO TAKE TODAY
Immediately go long CAM by buying the CAM JAN $20 Calls (CAMAD) up to $2.90. After getting filled, place a good til canceled (GTC) order to sell CAMAD at $4 for a 35% gain. Also, place a stop loss at $18.95 which means if the security hits $18.95, you exit the trade with a small loss. Position got stopped out for a small loss. If you used trailing stops, this position actually made a profit of about 15% since options tarded at $3.50 on 11/26/08.

A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It's the equivalent of going long the stock -- without the big risks that buying entails.

What you do here is, if you do your homework and agree that the security is bullish, you take a long position in CAMAD (CAMERON INTERNATIONAL CORP) by buying a call option betting that the stock will go up. You will pay up to $2.90 per stock which means that the option will cost you $290.00 plus commission and fees. Remember, every option contract contains 100 shares.

Picks for 11/13/08

ACTION TO TAKE TODAY
Immediately go long DIA by buying the DIA DEC 84 Calls (DAVLF) up to $5.75. After getting filled, place a good til canceled (GTC) order to sell DAVLF at $7.80 for a 35% gain. Also, place a stop loss at $83.06 which means if the security hits $83.06, you exit the trade with a small loss. Position closed on 11/14/08 at $8.60 for a profit of 49.6%. Position held for 1 day.

A call option, remember, gives you, the buyer, the right to buy the stock at any time prior to the expiration date, at a lower price. It's the equivalent of going long the stock -- without the big risks that buying entails.

What you do here is, if you do your homework and agree that the security is bullish, you take a long position in DIA (Dow Jones Diamonds) by buying a call option betting that the stock will go up. You will pay up to $5.75 per stock which means that the option will cost you $575.00 plus commission and fees. Remember, every option contract contains 100 shares.

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Free Investing Tips

These are some of my Option Stock Trading Rules that I follow religiously. I think you should too.

1- Never, ever, ever, ever try to catch a falling knife. Never, ever, ever, ever try to catch a falling knife. When a stock is trading lower, Do Not buy thinking it will bounce right back after you buy. The equity may keep falling a lot more than you think and you will have to double, triple or quadruple down to just to get back to the break-even point.

2- Never, ever, ever, ever try to go against the overall market. Never, ever, ever, ever try to go against the overall market. Vivid example is today's market. So many people tried to go against the market trying to predict a bottom and got hurt pretty bad. When in doubt, follow the trend lines to see where the market is heading before you take a position.

3- Always set trailing stops for winning trades. Always set trailing stops for winning trades. Especially, when the trade jumps in its first few days after getting filled. Set a trailing stop for 10%. Which means, if the option goes down in price by 10%, then you are automatically out. You can set the trailing stop at whatever you are comfortable with but just keep in mind that however easy you make the $$, you can easily lose $$ too.

4- Always set stops for initial entries. Always set stops for initial entries. After you get filled, set your stop loss at a target you are comfortable with. Simple but not followed by a lot of traders. Trades will go awry. You don't want to lose a lot of money and have none to get back in the game the next day. Take it from me! I lost a lot of money not setting stops. I don't want you to make the same mistake I made.

5- Always keep an eye on the overall market for signs of strength or weakness. Always keep an eye on the overall market for signs of strength or weakness. There is an all adage in Wall Street "The Trend Is Your Friend". It can't be any more true when the market is heading up, buy calls on securities that have shown strength. If the market is going down, buy puts on the securities that have performed the worst in the up market.

6- Never try to predict a bottom. Never try to predict a bottom. So many great investors just recently tried to call in a bottom and lost Billions. Try not be a hero. There will always be opportunities to chose from.

7- Never try to predict a top. Just when you sell thinking the top had been reached, securities can keep going up! You try to get back in thinking you have missed on the upside opportunity and the bottom falls off. Keep your eyes on the signals (Candlesticks, western, sentiment, news...)

8- Always use candlesticks for confirmation.

9- Always use support and resistance points.

10- Always use trend lines.

11- If an equity gaps up and consolidates without trading below the low of the GAP in 5 trading days or less, take a long position as soon as the high of the GAP is broken.

12- If an equity gaps down and consolidates without trading above the high of the GAP in 5 trading days or less, take a short position as soon as the low of the GAP is broken.

13- Use Williams %R 30 to confirm entry and exit of positions.

14- When volume capitulation occurs, take a position for a quick trade.

15- On downtrending markets, use bearish engulfing patterns, with second candle’s top body price is at least 15% of first candle’s top price, with 2nd candle’s volume is at least 130% of 1st candle’s volume, when 1st candle of pattern made a new high.

16- Keep an eye on the global economic health by keeping an eye on Copper. Copper goes up, healthy global economy. Copper goes down, you guessed it, weak global economy.

17- Keep an eye on Dry Shippers. They bottom, buy coal stocks. They top, sell coal stocks.

18- Shanghai stock market bottoms, buy coal and dry shippers.

19- As the mighty Dollar weakens, buy gold stocks, exporters stocks, oil stocks.

20- To learn more about Technical Analysis Go Here: Yahoo Finance

More Option Stock Picks Trading Rules will follow.


If you would like to excel at options trading like myself, you will need to read the book by Steve Palmquist. Check it out:



Candlesticks are one of the most widely used technical tools in trading. Designed to provide detailed, at-a-glance information, these charts are integrated into almost every web site and charting software solution. But, despite their popularity, the definitions of these candlestick patterns are often vague and misleading. Now, for the first time ever, Steve Palmquist hands you the secrets for effectively using candlestick patterns in all market conditions. Data that would take years to compile and years to interpret is now at your fingertips. Based on intensive back testing and research, Money-Making Candlestick Patterns shows how to appropriately use the most popular candlestick patterns in bull, bear, and sideways trends.

Built from PROVEN FACTS, not theory, you'll learn:
*Clear definitions of each selected pattern to remove guesswork and improve performance
*Exactly what you need to know about back testing to increase your wins and minimize your losses
*The impact of various market conditions on the most powerful patterns to remove surprises and increase profits
*Keys to eliminating common testing mistakes that can prevent you from making money
*The candlestick pattern that has shown triple ROI in back testing
This book rigorously tests the assumptions inherent in standard candlestick pattern definitions. Each chapter breaks down the pattern to examine how parameters such as current volume, average volume, and price level will impact results. The definitions that most often produce profitable trades are identified and outlined with complete usage instructions for increasing your winning trade percentage. In this book, technician Steve Palmquist hands you his years of research. The information on back testing and the insight into your favorite patterns will give you a seasoned advantage in a fraction of the time. Thorough and efficiently organized, this book will allow you to use candlestick patterns to exploit every move the market makes.

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My Record

Here are some of my winning trades:

MHP 49.2% Profit in 8 days
CVD 26% Profit in 7 days
BP 6.7% Loss in 1 day
MATK 27.6% Loss in 1 day
XRT 28% Loss in 7 days
ANR 50% Profit in 2 days
SNDK 40% Profit in 2 days
FCX 58.2% Profit in 1 day
SNDK 20% Profit in 5 days
BBT 89.3% Profit in 2 days
C 80.9% Profit in 8 days
CAM 15% Loss in 7 days
DIA 49.6% Profit in 1 day
AMGN 36% profit in 8 days
ANR 200% profit in 24 days
APC 238% profit in 8 days
APC 91% profit in 12 days
CFC 80% profit in 20 days
CCJ 39% profit in 30 days
DRYS 233% profit in 5 days
ICE 217% profit in 4 days
ICE 212% profit in 36 days
BSC 172% profit in 1 days
KEY 30% profit in 6 days
KLAC 229% Profit in 12 days
MA 272% Profit in 15 days
LXK 288% Profit in 14 days
LEH 60% Profit in 8 days

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Free Options Picks Disclaimer

DISCLAIMER

All materials presented on this blog and viewed by the general public are not to be regarded as investment advice and are only offered for informative purposes. Before making a purchase or sale of any securities featured on this blog, I strongly encourage and recommend consultation with a registered securities representative. This is not to be construed as a solicitation to buy or sell securities. Any stock featured or companies selected or presented involve a high degree of investment risk and volatility. All investors are cautioned that they may lose all or a portion of their investment if they decide to make a purchase in any stock or option picks presented by me on my blog.
It should be understood that there is no guarantee that past performance will be indicative of future results. The accuracy or completeness of the picks posted on my blog is only as reliable as the sources they were obtained from. I do not accept payment to feature or recommend any stock as a "pick" to my members!
I cannot guarantee and do not guarantee that all and/or any of my stock picks will ever increase in value at any particular time after the stock option pick is disclosed to my subscribers/members. All stocks options can decrease in value at any time. It is your decision alone to buy or sell any stock option presented on my blogs.
Safe Harbor Disclosure. The information and Services contained in or made through the Site may include or incorporate by reference "forward-looking statements," including certain information with respect to plans and strategies of the featured company. For this purpose, any statements on the Site or incorporated by reference that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the forgoing, the words "believe(s)," "anticipate(s)," "plan(s)," "expect(s)," "project(s)" and similar expressions are intended to identify forward-looking statements. Such statements are subject to risks, uncertainties, and assumptions about each company, economic and market factors and the industries in which the companies do business, among other factors. These statements are in no way guarantees of future performance and actual events, and results may differ materially from those expressed or forecasted by the companies due to many factors.
Just To Be Safe: I have chosen to be in full compliance with the Securities Act of 1933, Section 17(b) Therefore, if any compensation is ever received at any time in the future from a company, it will be included in the disclaimer of the site as "Profit " received the amount of $$$$ cash or #### shares from the XXX Company as compensation for the presentation of this information. Again, I never have and never will accept payment.
As a final suggestion: "Never, ever, make an investment based solely on what you read in an online newsletter or Internet bulletin board, especially if the investment involves a small, thinly-traded company that isn't well known," said Nancy M. Smith, Director of the Securities Exchange Commission's (SEC) Office of Investor Education and Assistance. "Assume that the information about these companies is not trustworthy unless you can prove otherwise through your own independent research". Visit the SEC's Web Site, at http://www.sec.gov/consumer/cyberfr.htm
Disclaimer - I am not a stock trading advisor. The information on this site is for trading education only. There are no trading recommendations for any one individual made on this site and this information is paper trades for trading education. All trades are extremely risky and only risk capital should be used when trading.
U.S. Government Required Disclaimer - Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

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Compound Returns Sample

Commissions and fees aside, here is what you potentially could extract out of the market on your way to $1,000,000.00 starting with $5,000.00:

Month---Capital + Profit-----Profit
1----------$5,000---------------$1,750
2----------$6,750---------------$2,363
3----------$9,113---------------$3,189
4----------$12,302--------------$4,306
5----------$16,608--------------$5,813
6----------$2,420---------------$7,847
7----------$30,267--------------$10,594
8----------$40,861--------------$14,301
9----------$55,162--------------$19,307
10----------$74,469-------------$26,064
11----------$100,533------------$35,186
12----------$135,719------------$47,502
13----------$183,221------------$64,127
14----------$247,348------------$86,572
15----------$333,920------------$116,872
16----------$450,792------------$157,777
17----------$608,570------------$212,999
18----------$821,569------------$287,549
19----------$1,109,118----------$388,191

As you can see, after 18 months, you could potentially have over $1,000,000.00 starting with $5,000.00 following my Free Option Picks system. What would you do with that money? Don't forget to help those in need!

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Chart Of The Week

Posted charts DO NOT mean for you to take a position in the equity mentioned. Please refer to the Disclaimer.


All charts are courtesy of StockCharts.com

Week of 5/31/09





Week of 2/8/09





Week of 1/21/08

How the Universe looks at the DOW! ;)



Week of 1/21/08





Week of 1/12/08



Week of 12/17/08



Week of 12/8/08



Week of 12/1/08



Week of 11/24/08



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Week of 11/10/08



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Free Options Picks

What Are Stock Options?
The purchase of an option gives you the right but not the obligation to either buy or sell a specified number of a financial instrument at a specified price within a specified time period. A Call Option gives you the right, but not the obligation, to BUY (go 'Long' the market). A Put Option gives you the right, but not the obligation, to SELL ('Sell Short' the market).

Why Trade Stock Options?
Options were created to reduce risk. The principle of trading/using options to reduce risk is simple. Options allow you to control an asset (a stock) at only a fraction of its purchase price. The less money you put at risk, the lower the potential hazard to your financial well being. But remember, when you utilize what we've already taught you about using Stop Losses' (ISL) when entering the market (either 'Long' or 'Short'), there will be NO need to worry about losing too much money on a trade (a maximum of 8% of the value of the stock). The manner in which you can use options though can provide opportunities for tremendous profits.
So what are we saying here? Something that was supposed to reduce risk offers opportunities for tremendous profits? Higher profits always come at the expense of higher risks, don't they? Not necessarily! The secret lies in the definition of risk and in the use of leverage.

The use of options is a little like buying lottery tickets. You bet only a few dollars for the opportunity of winning a large amount of money. You know that your chances of winning the lottery are very small, so you bet only small amounts of money at the time. If you win, however, the payoff can be huge. This is what options are all about...risking a small amount and controlling hundreds of thousands, perhaps millions worth of assets.

The most common example of using options is the case of writing a small check to hold a house you may wish to buy. In this example, you demonstrate your willingness to buy the property by committing a relatively small amount of money to the realtor. In most cases, the money isn't really at risk because it will be refunded to you if you decide not to buy the house or release the property before the agreed upon deadline. Although buying and selling stock options is not quite as customer friendly, the idea is the same.

If you are the do it yourself type of person, I can tell you that reading the book Money-Making Candlestick Patterns: Backtested for Proven Results By Steve Palmquist is a great place to learn how to invest with options. Check it out here



And then again, you could always let me do the work by subscribing to my blog:

Free Options Picks

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