Velocity and Forces In Depth

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Posted on May 14, 2009 by AssetHound
This was a good explanation and the concepts make good sense (as wanna_be-rich points out). But, you know, you can't afford to wait around watching for one stock to move. I think it would also be beneficial to be able to filter for size of order to eliminate the small ones. I think this is a good concept in theory but, in practice, I cannot seem to put it to good use yet. This would be a good topic for a branch seminar on trading with V&F where you actually trade using the tool. Keep the good ideas coming. Thanks.
Posted on May 14, 2009 by wanna_be_rich
Good Video. Much more useful explanation in there. Thanks. But you need a better example than that Apple stock you were watching.... At one point I froze your video, and saw a spread on the graph between $92.17 and $91.83 That works out to 35 cents. Now suppose I buy 100 shares, get lucky, and pick up half that spread. After I pay the commission, I've got almost nothing left. Not a good example of making money. What you need is an example where you see a HUGE spike in both Forces in Velocity, then do a "real life" trading example. Enter a market buy for 100 shares when you see the huge spike, then ride it until the Forces & Velocity indicators go negative, then execute a market sell. Afterwards show us what is left over, after paying the commission. In other words, show us a full round-trip trade using real life data and this new tool. I'm not trying to be funny or too critical. The truth is that I've been using this new Velocity & Forces tool INTENSELY lately. I sit here all day in front of the tube, waiting for those big F&V glitches. Sometimes the stock goes in the wrong direction, but as you implied in the video, anybody can execute market orders at any time and screw things up. BUT, if you do get those TWO big simultaneous waves you're looking for, you have a higher probability of getting a good ride. I've done that enough times that I'm convinced of it. Another important point.... So why do I have to look for two "waves" at the same time? Todd makes it clear that with respect to the Velocity and Forces dials, "It is important to use these tools together". That really begs the question: OK, why don't you just combine them into a single gauge for us. Then allow us to set a threshold alert to wake us up to make the trade. I waste too much time looking at this thing all day waiting for the next big set of waves. On a good day I might get three round trips on a stock. Let me pull up 20 stocks at the same time, set a threshold, and have the system wake me up to make the trade. That way I'll make more successful trades, and you Scottrade guys will earn more commissions. Sound like a good deal? One last suggestion. Integrate this new tool into the advanced section of the market order window, and execute those trades for me. Then I can go off and do something more useful with my time, and come back after the market closes and see how much money I made. Thanks for your consideration.
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Uploaded by Mod Mike
May 14, 2009
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Velocity and Forces In Depth
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