Wednesday, March 31, 2010

Determing Price Targets On Patterns

Find the pattern(setup) to trade: In the above example is an 'Inverse Head and Shoulder Pattern'

Calculate the difference between the top of the pattern to the bottom of the pattern(setup).... Then add that number to the breakout number and you'll have a good first target to work with.
This is not a perfect but it works more than most think.

Tuesday, March 30, 2010

Awesome Testimonials From Two Long Time Art Of Trading Subscribers!!

The Impatient Trader

"I started following Stewie's blog, ( around February of 2009, a few months before Stewie launched this service. As a proprietary trader at an investment bank, I was always fully saturated with ideas in the market, following numerous blogs where traders posted their trades and other users would also contribute ideas. By the time Stewie launched his alerts service, I had seen more than enough successful trades, backed up with detailed charts and explanations, to know that Stewie was not only going to be able to produce winning stock picks, but that I could learn a lot from. In my past I was more of an investor or medium term trader, but as the markets fell and volatility rose, I found that there was much money to be made in these markets if you are following the right discipline and strategies. In the past year I have grown so much as a trader, had discipline reinforced through his critical eye and rules that never get bent. Stewie does not trade on whims with loosely place rules, stops etc... Position sizing is constant, stops losses are methodical, entries are well thought out, and his support is in real time since he, along with dozens of other seasoned traders, are always available throughout the trading day in chat room, or email if you prefer.
To reinforce the point, I would think of Art of Trading as a MENTORSHIP service, as much as it is a TRADING ALERTS service. And for the price you are paying, you would be foolish not to enlist his services. I am sure that there are more than a handful of subscribers who agree with me that Stewie could be charging literally TEN or more times the subscription fee and it would be worth the serious traders money, but what sets him apart from a simple stock picker is how he goes OUT OF HIS WAY to explain explain and explain again reasoning and disciplines necessary to be a successful trader on your own. After 15 or 16 months I consider Stewie a friend, a mentor, and of course, A DAMN GOOD TRADER!!!
Plus, every once in a while, you will get a kickass recipe for a tasty burger, lamb chops, or whatever Stewie decides to grill up after a soccer game. I can tell from thousands of miles away, that he is a well grounded and well rounded person and encourages his followers to be the same way. A healthy lifestyle will help you to trade un-emotionally.
In summary, if you are looking for killer trades with a SERIOUS no-BS record, mentorship, real time chat with other traders of varying styles and experience...Look no further!


Art of Trading Rocks!

"I have subscribed through the years to a number of services, but never one like this one. Stewie not only produces consistent winners (and fewer losers), but he is personally interested in helping each subscriber. If I am not making money, he wants to know it and makes suggestions on how to turn it around. I am a novice trader, and he is patient to walk me through a trade and make helpful suggestions.

The service way more than pays for itself, and I wholeheartedly recommend it.


For More Testimonials: Click Here

This is more than just simple trade alerts!



SPX Struggling at 1180

This is an updated chart from a couple of days ago on the SPX and we need to expect a small pullback from here. I am still very much bullish but we need to expect a pullback here. This pullback will set up some very very nice and solid buying opportunities. Needs a few days to play out so patience here as the charts reset. The SPX has attempted several times to crack thru 1180 and seems to be having trouble. I think it's best to sit in cash or be very nimble if you wanna play the short side. 1150 is very strong support for the SPX and pullbacks there would likely see some solid bounce i imagine. If i had it my way, i'd love to see the indexes pullback for another few more days. As i type this, i am noticing lots of stocks turning deeper into the red yet the indexes are only down slightly. I think CASH IS KING and look to buy stocks on dips!

Monday, March 29, 2010

Setups To Watch

These two very "tricky" to trade coal stocks look ripe for a move higher form here. Keep these two on your watchlists.

Sunday, March 28, 2010

96.0% Return In 50 Weeks Of Live Real Time Trading!!!!

Portfolio At A NEW All Time High!!

Check out the full trading performance here:

39 winning weeks with only 11 small down weeks!!

Much more than simple trading alerts: I TEACH YOU!!


Thank you for the trade alerts today. I came home to see that I made a 4-digit gain today (up almost $1100). I had to close out both SMCI and PEI as I will have a meeting tomorrow morning and will not have a chance to reset the stops. Anyway, I just want to share my "success" today with you and to say a big THANK YOU!

BTW, I scale up my position sizes (about $15 to $20K per trade) today this week.

Please keep up with all the good work.




The performance and testimonials speaks for itself!


SPX: Distribution Patterns

Just a quick chart to share with you but it's one that needs your attention. I am starting to see signs that a pullback on the indexes might be starting maybe even as early as next week. I would be cautious with new longs here. However, i would NOT be too aggressive shorting either. I think a pullback to 1150 on the SPX is very possible and if anything would be a nice buying opportunity as of now. I will be looking for that.

good trading!

Friday, March 26, 2010

Art Of Trading Member Cleared $2000 This Week!!!

Thanks for another great day! I booked almost $550 of gain today from your LULU alert. This is sweet! Overall, I made close to $2000 this week based on your alerts.


20 Day Moving Averages And Pullbacks In Strong Trends

Pay attention to the 20 day moving averages. They are EXCELLENT buying opportunities in strong trends when indexes or stocks pullback to take a breather. I am hoping that we start a small correction here over the next few days to help test these 20 day moving averages. I will be looking to buy as we test these 20 day averages. Also known as a HOLY GRAIL setup.

Thursday, March 25, 2010

Art Of Trading Performance This Week

Here are this week's trade alert performance. We made 7 trades and all 7 were winners pretty much. They were not HUGE winners but still winners non the less. I am pleased with this week's results especially given we had ALL winners. This is the second time in ART OF TRADING history this has happened.

LONG SMCI at 17.47 sold at 17.75 +1.6%

LONG X at 59.20 sold at 60.03 +1.4%

LONG NETL at 30.20 sold at 31.08 +2.91%

LONG PEI at 12.30 sold at 12.60 +2.4%

LONG IVN at 16.55 sold at 16.70 +0.9%

LONG APKT at 19.05 sold at 19.75 +3.67%

LONG CAGC at 27.25 sold at 27.30 FLAT

LONG LULU at 39.05 sold at 40.3 3.2%

I am done trading today and we are ALL CASH NOW!! Feels good to be in cash and taking profits after a big run up in stocks that's what happens when you trade anticipating a rally rather than chasing a rally! Now, i will wait for stocks to pullback a little as things look a little extended and we could be vulnerable for some pullbacks in some stocks here.


Art Of Trading Member Cleared $1100 On One Trade!!!

FYI: I took this CAGC trade (after a long time of taking your alerts) and sold at 28.05 w/ limit order. Because I had the position size on the high side.
Hence nice profits. Thank you sir... :) btw: it's a sweet profit too: +$1100... :))

M.T. "

This one trade paid for his subscription for 22 months!!! That's almost two years!!

Join Us For A Two Week FREE TRIAL and Check It Out For Yourself!!!

Tuesday, March 23, 2010

Feedback From Art Of Trading Members!!!

Thank you from the bottom of my heart for these amazing reviews. I never imagined or expected reviews of this caliber!!

Thank you! Thank you! Thank you!!

Check em all out here!!

"It's only been a day but I am definitely loving your services! Feel much more connected than some of the previous services I've tried out in the past and I already am appreciating the quick responses that you provide!


Andrew been a member for ONE DAY!!

"Heard you on TraderInterviews, started following your blog and decided
to give the service a trial. Needless to mention, it's been a
phenomenal journey!!"


A.K. has been a member for 4 months!!


Monday, March 22, 2010

Overcoming Trading Paralysis

Today i got this email from a fellow member: I am seeing more and more guys suffering from similar problems lately:


Can you address how you deal with paralysis due to existing market beliefs? In other words, I'm worried about waking up to a very big down day when I'm taking some of these long swing trades. I haven't let a trade run in weeks other than small scalps here and there. I'm watching your analysis closely but still very hesitant.


Here's what i think:

It is clear that Mike is suffering from trading paralysis. He CANNOT pull the trigger on any trades because he is allowing his beliefs of the economy, the stock market etc dictate his trading decisions. Guys, look, we are NOT economists, stock market predictors or anything like that. We are traders. WHAT IS A TRADERS REAL JOB? A trader's real job is to measure SUPPLY and DEMAND in a market every week, every day, every hour. Let me give you an example:

This morning the S&P500 futures pointed to a weak open and the market gapped lower at the open. I am 100% sure that many of you thought we were gonna have a major down today due to Obama/Healthcare/positioning of the moon/wife was in a bad mood etc etc etc. All this DOES NOT MEAN CRAP to me!! Excuse my language but i am 100% serious here. You need to separate any preconceived notions about market direction, what you read on a blog, newspaper, TV etc etc.

When the futures pointed to a lower open this morning and we gapped lower on the open. DID your short positions work? Probably not. Am i right? What should automatically tell you? For me, it tells me i am FIGHTING THE TAPE. You know a lot of guys who fight the tape and win consistently?? NOT ME.

Trading becomes so much easier once you ask yourself, WHO IS DRIVING TODAY'S TAPE? supply or demand?

On today's open, the answer was obvious to me: it WAS DEMAND! So i started issuing LONG ALERTS. The guys who questioned the move, sat there in amazement as prices ran away and kept going higher and higher.

Place the trade, place the stop loss and walk away. NO EMOTIONS. My best trading days came when i placed the trade and walked away. NO EMOTIONS, NO DRAMA, NO OVER THINKING. JUST price action, market flow, natural price action and allowing supply/demand dynamics to dictate trade direction: WIN OR LOSE, i traded with discipline and i followed my plan and eventually when you trade that way, you will win!

I always say when it comes to trading use the K.I.S.S. principal: KEEP IT SIMPLE STUPID!! The dumber you are the better off you will be!

LESS IS MORE: the less you think the better! The less you analyze the better! The less CNBC you listen to the better, the less you trade the better. LESS IS MORE!!

If you are afraid to pull the trigger on trades, then clearly you are suffering from lack of TRADING CONFIDENCE. IT happens to the best of us form time to time. We are traders, we are human beings. Who knows what could be bothering you in your private life? Don't underestimate how your private life affects your trading 'mood'.

A guy getting a divorce or who just lost his job needs to RUN AWAY FROM THE TRADING SCREENS!!! Trust me on this one. DO NOT LET EMOTIONAL baggage into the trading room: YOU WILL LOSE MONEY! Get your head on right first.

You need to ask yourself: WHAT IS REALLY BOTHERING ME? Why am i not putting on these trades i otherwise would be doing?

Start with very small positions. I always tell people, the best way to get out of a trading slump is TO TRADE THRU IT!!! Take a short break but come back and trade thru this slump!! You would be amazed what one small but good trade does for the self confidence! Trading is 99% mental, you guys know that.

i encourage anyone who is in a slump or suffering from trading paralysis to TRADE YOUR WAY THRU IT (but do take a little break first to allow your nerves sometime to relax). Instead of a 1000 shares, go into trade with 100 or 200 shares to get your feet wet. Increase size as your rebuild your confidence.

I hope this helps!!

Art of Trading Member Cleared $1,100 Today!!!


Thank you for the trade alerts today. I came home to see that I made a 4-digit gain today (up almost $1100). I had to close out both SMCI and PEI as I will have a meeting tomorrow morning and will not have a chance to reset the stops. Anyway, I just want to share my "success" today with you and to say a big THANK YOU!

BTW, I scale up my position sizes (about $15 to $20K per trade) today this week.

Please keep up with all the good work.



Long Time Art Of Trading Member Cleared $878 Today!!!!


I had an awesome trading day today thanks to your service! I took X, NETL and PEI. I exited the first two a few minutes before your sell alert and I sold PEI right before the close. All told, I came out with $878 today and I am very pleased with these results. I might regret not holding PEI as a swing trade, but I am taking your advice and taking quick gains. Thanks for another great day of trading.


Ben just paid for 17 months worth of ART OF TRADING service in one day's gain!!!

Trade Alert Taken Today At The ART OF TRADING: Holy Grail Pattern

Hi folks,

Today we did a trade in the ART OF TRADING called a HOLY GRAIL setup:

Made a quick 2.9% gain in just over one hour!

If you are not familiar with Holy Grail Setups, please take the time to learn this very reliable pattern.

good trading!

Sunday, March 21, 2010

ART OF TRADING One Year Anniversary!!!!

Exactly one year ago i started the ART OF TRADING service and ever since then i have entered an amazing journey into TRADER EDUCATION! As a trader, starting this service has been one if not the best thing i have ever done as a trader. Before embarking into this, i promised myself (and the folks who believed in me back then), that i will offer them something that they have never seen before: Something different, something unique, something with very personalized, something that helps them grow as traders, something that is affordable and something that sells itself via word of mouth.
I can safely say based on testimonials from the numerous traders who walked in and out of the ART OF TRADING doors that I have delivered in many aspects on the promise i made one year ago. You can see full detailed reviews on investimonials!!

Exactly One Year Ago I Wrote This Post:

I hope to bring you even more ideas. I fully intend to share more and hoping that i deliver on my promise to

94.0% Return In 49 Weeks Of Live Real Time Trading!!!!

Portfolio At A NEW All Time High!!

Check out the full trading performance here:

38 winning weeks with only 11 small down weeks!!

Much more than simple trading alerts: I TEACH YOU!!

"Hey Stewie,

Last week was a great week for me. As you know I did very well with my AAPL position, but I also did well with your calls.Only using about 20k from my account and around 8k per trade I made over 300$ in 3 days last week and another $250 today (closing CLNE, and in PCX).Needless to say I'm happy with the performance thus far. I've tried to stick to your trades only to get a feel for them, and so far they were all winners."


The performance and testimonials speaks for itself!


Saturday, March 20, 2010

Position Sizing: Finding YOUR Max Pain

Position Sizing(P.S.) is a very important part in trading survival. Improper P.S. can lead to overtrading, taking tiny profits while letting losing trades run against you and turn into huge losses. In short, if not done well enough to fit your level of comfort it will lead to EMOTIONAL TRADING. Which is the single biggest enemy to a trader.

In my opinion, P.S. is where trading becomes an art. Every trader has their own level of comfort and pain. If i am managing a portfolio worth $100,000 and i take a $5000 loss on a trade, then i will get emotional and start to notice changes in my behavior in front of my computer screen. I will start to curse, sweat from my forehead, pace around the room or start to desperately scan thru my stocks to find the next trade that's gonna 'get me out' of this loss. Never 'gets us out' does it??!!
If anything, that loss will likely get bigger.

Position sizing is about treating every SINGLE trade on it's own merit and you MUST have a MAX pain stop loss in mind before that trade is executed(and always have a profit target). Having said that, my max pain loss is different then yours. EVERYBODY's MAX PAIN IS DIFFERENT!!!! Also, my max pain stop loss is different when i am in a winning streak(my max pain stop loss tends to increase after a nice winning streak) and vice versa in a losing streak(i tend to be very chicken and cut losses and position sizing quickly when i am trading like crap).
TRADING IS AN ART! Not a science in my opinion.

The key is to figure out a number, a stop loss figure, that once it gets hit, you'll admit you are wrong, sell the position and move on to the next trade without affecting your emotional state of mind. If you feel emotional after that loss, then you have likely crossed your MAX LOSS PAIN you are now trading on desperation to recoup that loss and you are trading to get even rather then focusing on nailing the next trade and placing that ONE TRADE that's making your mouth water.

During winning streaks where my mind is at ease, i am seeing moves in "3D" and i am executing trades when i am in "the zone" and i am moving from one winning trade to another with flawless execution then i will tend to get more aggressive with my position sizing as the market is likely VIBING WITH MY STYLE (I am trading in my comfort zone). My comfort zone is a momentum market, a runaway market which is setting up Holy Grail Setups, Wedges/Flags, Breakout patterns, volume is rampant in the stocks i am trading and stocks are closing on their highs/lows.

I like to think of myself as a disciplined trader: when i am not vibing with the market and i am making bad market calls or making poor stock selection then i will stop trading all together. When i do place the trade, i will test out tiny positions to see if i am "seeing em right." If not, then i will go on trading probation and hibernate until the tides turn back in my favor.

Obviously i am shooting to be down as little as possible. This is where THE IMPATIENT TRADER in me comes in. I know that winning trades work almost right away. A trade that is fighting me early on or is not moving within 15 minutes after my entry will likely NOT WORK and TURN INTO A LOSER! I repeat, your style and your max pain will be different! I CANNOT STRESS THAT ENOUGH. You need to find your comfort zone.

This Is Where Trading IS an ART. Getting a feel for your trading will require you to TRADE and finding out what kind of trader you are, what is your MAX PAIN, what kind of market conditions will "make your mouth water". Trade only when you are thinking rationally, not emotionally.

Good luck.

Wednesday, March 17, 2010

PLEASE READ CAREFULLY! Excerpt From Stages Of A Trader by Bo Yoder

Stage Six: Mastery (also from Vad Graifer)

"At this level, the trader achieves an almost Zen-like trading state. Planning, analysis, research are the focus of his time and his effort. When the trading day opens, he's ready for it. He's calm, he's relaxed, he's centered.

Trading becomes effortless. He is thoroughly familiar with his plan. He knows exactly what he will do in any given situation, even if the doing means exiting immediately upon a completely unexpected development. He understands the inevitability of loss and accepts it as a natural part of the business of trading. No one can hurt him because he's protected by his rules and his discipline.

He is sensitive to and in tune with the ebb and flow of market behavior and the natural actions and reactions to it that his research has taught him will optimize his edge*. He is "available". He doesn't have to know what the market will do next because he knows how he will react to anything the market does and is confident in his ability to react correctly.

He understands and practices "active inaction", knowing exactly what it is he wants, exactly what it is he's looking for, and waiting, patiently, for exactly the right opportunity. If and when that opportunity presents itself, he acts decisively and without hesitation, then waits, patiently, again, for the next opportunity.

He does not convince himself that he is right. He watches price movement and draws his conclusions. When market behavior changes, so do his tactics. He acknowledges that market movement is the ultimate truth. He doesn't try to outsmart or outguess it.

He is, in a sense, outside himself, acting as his own coach, asking himself questions and explaining to himself without rationalization what he's waiting for, what he's doing, reminding himself of this or that, keeping himself centered and focused, taking distractions in stride. He doesn't get overexcited about winning trades; he doesn't get depressed about losing trades. He accepts that price does what it does and the market is what it is.

His performance has nothing to do with his self-worth. It is during this stage that the "intuitive" sense begins to manifest itself. As infrequent as it may be, he learns to experiment with it and to build trust in it.

And at the end of the day, he reviews his work, makes whatever adjustments are necessary, if any, and begins his preparation for the following day, satisfied with himself for having traded well.

The knowledge proved through research that a particular price pattern or market behavior offers an acceptable level of predictability and risk to reward to provide a consistently profitable outcome over time."

Not Too Late To Buy These Stocks

These stocks look to be setting up another leg higher. Worth watching them.

Tuesday, March 16, 2010

Awesome Testimonial From An Art Of Trading Subscriber!!!

Great personalized service by traderstewie for all levels

I've been with traderstewie for close to 2 months now - have never been happier. He offers a very personalized approach to investing. Yes there are thousands of newsletters / investment services out there that sends out real-time alerts, but how many would actually really take the time & effort to reply to your queries? (however newbie they may be).

traderstewie is passionate at what he does. Every morning between 6-6.30 am PST, he emails his subscribers a pre-market take (and yes, he lives in the West Coast.. so he does get up that early!). More importantly, he is good in what he does. I started following stewie through twitter, and noticed that he publishes good setups (check out After making money on some setups, I was intrigued that he runs a subscription service - with 2 weeks free trial, so I decided to give it a go.

In the first 3.5 weeks of my subscription (and this includes 2 weeks of free trial), I made $1969.28 following his recs. But more important than gains, from following him, I'm getting a better sense of when to get in, when to get out.. when things look right, and when things start to look wrong. I would highly recommend this service to anyone willing to learn. I subscribed to many different services before, and I can honestly say this is one service that I would subscribe to for a long time.

Monday, March 15, 2010

Hanging Man Candles

LOOKING FOR THE MARKETS TO STALL UP HERE AND START A SMALL RETRACEMENT. But please this IS NOT A SHORT SIGNAL!! Raise cash and lurk in the shadows until more charts setup. Need to at least expect a choppy retracement from here on many indexes. Be ready, choppy corrections ARE EXTREMELY unprofitable for the majority of traders. Most traders will lose most if not all their profits from TRENDING MARKETS by trying to be beat CHOPPY markets. Still bullish overall but need to expect more "soft action" and look for many charts to start some sort of retracement for here. I imagine the pullbacks will be shallow and dip buyers will be looking to reengage new longs.
For now, i am 100% cash and happy to stay that way until better charts start to reemerge again.

94.0% Return In 48 Weeks Of Live Real Time Trading Alerts!!!!

Portfolio Hit A NEW All Time High!!

Check out the full trading performance here:

37 winning weeks with only 11 small down weeks!!

Much more than simple trading alerts: I TEACH YOU!!

"Yes got in XTEX @ $10.40 out at $11.45 .... made a nice $1100 after a long gap.
Thanks stewie!"



The performance and testimonials speaks for itself!


Saturday, March 13, 2010

Making You A Better Trader Everyday!!

Listen to what Art Of Trading Members have to say about their experience!!


Friday, March 12, 2010

Confessions From A Trading Addict

What does it take to succeed in this ruthless business? Who are the guys who see the light at the end of the never ending tunnel? Who are these people??

You wanna know who? Seriously, I will be serious with you: The guys who eventually win in this business are The Trading Addicts.

I am 34 years old now, i first heard about trading and the idea of making money out of nothing when i was 19 or 20 years old. Back in 1998. I was in College and decided to study finance because i wanted to make trading my profession. Everything about trading, I WANTED TO READ!! The local stocks quotes, the local, national and international news papers grabbed my attention. I was hungry to learn, i was eager to learn, i was 19-20 years and TRADING IS WHAT I WANTED TO DO!! I used to run home after school and click on the PBS and watch the NIGHTLY BUSINESS REPORT with Paul Kangas!! OH the excitement!!!

Paul Kangas, would give one of those old man laughs and say "shares of jumped 20 points today on heavy trading". I had no idea what it meant at the time BUT i knew it was damn good!!! I saw the smile and look on his face. It was a damn good thing! I was hungry to learn and i was like a sponge and ready to suck in everything about trading i could get a hold of!!



I started reading books and i stumbled across a website called and i MUST SAY has been the BIGGEST STEPPING STONE for me as a trader!! I have been a member, a loyal member of since 1999!!!!

At the University Of Portland School of Business I took up finance and one of my professors who was used purely fundamentals to making trading decisions started a STOCK PICKING competition. There was over 40 students in the class.
The most popular picks among my peers were: MSFT, INTC, XOM, IBM, GE.

I chose stocks like: JDSU, CMGI, INTU, KTEL.

Stocks no one really knew! LOL! I knew them because Paul Kangas brought them to my attention and i had the most basic of charting skills. I knew enough about charts that if a chart pointed up, it would most likely keep going up. Little did i know that was basically momentum trading!! This is what happens to be my specialty now!! BUY HIGH, SELL HIGHER!

4 months later, the professor announced the winner of the stock picking competition and
not only did i win, i killed it!!! I was up well over 100% in 4 months!!!


Trading is my passion to the point where i decided to make it my profession. I do this daily, i sleep, eat, dream, breath, swallow, smell, taste TRADING. This is what i do, this is who i am.
I take pride in this.

I am more hungry to learn today than when i was 12 years ago! Every single day, i learn more and more about myself, my trading, my character.

There are days when i hate it, there are days when i hate myself, there are days when i feel like i am on top of Mount Everst but one thing i know for sure: I will never stop loving this.

It is who i am and who i always wanted to be.

I am a "trading addict" and i ALWAYS want to learn in order to win.....

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