Bill Hider – Short Term Momentum Trader Basic Strategy: Evening - Identify potential trades/entry points with the Daily Chart close Next day - Use the.

Bill Hider – Short Term Momentum Trader

Basic Strategy:

Evening - Identify potential trades/entry points with the Daily Chart close

Next day - Use the Intraday 5-Minute Chart to find precision entries/exits based on the Stock Price candlestick-patterns

Trade the Option, not the stock

Stay in the trade until either of the following is met:

1. The first major retracement begins, based on the 5-min price candlestick-pattern of the stock being traded

2. A price target is reached

Exit the trade the same-day (day-trade)

Bill Hider – Short Term Momentum Trader

Basic Trade Entry Rules (Watch the Stock, Trade the Option)

On Pullbacks to moving averages – on the bounce

On Breakout from technical continuation patterns

Trade in the direction of the S&P (Watching the SPX)

Do not trade in the first 15 – 20 minutes after the mkt opens, or longer, until SPX has identified a tradable direction.

Do not trade on “slow” trading days, or SPX Doji days

Note: There are well over 150 trading rules plus several dozen technical pattern rules, and a set of Option selection rules

Bill Hider – Short Term Momentum Trader

What I do

Select 3 to 7 trading candidates each evening - Daily chart close

I select from my personal trading list of 11 stocks:

AAPL AZO BIDU CME FSLR GOOG GS ICE MA OIH POT

And augment with 1 - 3 other stocks that have “moved” into entry patterns that day.

For Example, my list for today (5/20/09) was:

AMZN AZO GS MA PCLN RIMM

I actually traded AMZN & AZO today. These trades follow:

Bill Hider – Short Term Momentum Trader

Today’s Selections from Daily Chart:

My Game Plan first considers the SPX (daily).

Here’s what SPX looked like last night, 5/19/09

You can also see my pick-list in the left-hand column.

Bill Hider – Short Term Momentum Trader

AMZN’s Daily Chart (5/19/09):

Bill Hider – Short Term Momentum Trader

AZO’s Daily Chart (5/19/09):

Bill Hider – Short Term Momentum Trader

GS’s Daily Chart (5/19/09):

Bill Hider – Short Term Momentum Trader

MA’s Daily Chart (5/19/09):

Bill Hider – Short Term Momentum Trader

PCLN’s Daily Chart (5/19/09):

Bill Hider – Short Term Momentum Trader

RIMM’s Daily Chart (5/19/09):

Bill Hider – Short Term Momentum Trader

AMZN Entry @ 79.44, SPX Bullish, Entry time = 9:52AM, 5/20/2009ZQNFO, Jun 75C, 6.20 x 6.30, D = .70, BTO Fill = 6.30, 10 contracts

Bill Hider – Short Term Momentum Trader

AZO Entry @ 163.10, SPX Bullish, Entry time = 9:53AM, 5/20/2009AZOFK, Jun 155C, 11.70 x 12, D = .69, BTO Fill = 11.93, 8 contracts

Bill Hider – Short Term Momentum Trader

AMZN Exit @ 80.34, SPX Doji, 10:08AM, Time in trade = 16 minZQNFO STC Fill = 6.9 (tsl .1 @ 7.00). Profit = $600, 9.5%, $570 Net

Bill Hider – Short Term Momentum Trader

AZO Exits @ 163.09/163.31, SPX retraced, 10:11AM, Tr time = 18 min AZOFK STC Fill = 12.02 & 11.82, Loss = -$15, (-$45) = $-60.00 Net

Bill Hider – Short Term Momentum Trader

FOMC 2:15 PM decision day Special Rules:

Stay in any trades you are already in from overnight the previous nightDon’t enter any new trades before the FOMC announcement @ 2:15 PMThen, wait until SPX 5-min chart gives you the “all clear” to do any trading

Example: AZO 3-18-09

Bill Hider – Short Term Momentum Trader

3-18-09 AZO Entry after FOMC. SPX broke-out, retraced & broke out to 1st retracement candle. Note: took 30 minutes for SPX to settle down.

AZO @ 162.93, BTO AZOCK, Mar 150 C @ 8.28, 10 ctx*

AZO @ 163.69, STC AZOCK, Mar 150 C @ 8.815*

Profit = $535 – $30

$505 NET

*All trade slips from this PPT, available on

request.

Bill Hider – Short Term Momentum Trader

My 4 Most Important Rules Are PostedIn 3 Places Above my Trading Desk (really):

Any number of trades/day producing a day’s profit of $100, $200, $300, or $400, yields the annual profit listed if averaged over the approx 250 trading days/year.

No profit is too small!

Bill Hider – Short Term Momentum Trader

ANY

Questions? Comments?

Bill HiderRockville, MD301-642-0903

[email protected]