What makes PTS different is you have the ability to make money in all time frames and market conditions. The majority of services only make money when the market is trending upside nicely. PTS identifies profitable trades in all market conditions. This service is unique and extremely valuable; anyone who has subscribed to other updates/newsletters knows Mel stands alone at the top. Great system with great service. Thanks Mel $$$
Todd
Welcome to the PTS Setups. These are among the most successful stock and option setups available today. We sincerely hope that your trading is even more successful using PTS Setups.
How the system works: (delivery)
Every evening or well before the market open, PTS delivers 6 - 10 optionable equities, for the next trading day. Delivery or access of these setups is by the following means:
1. PTS will send you an email. Some emails are blocked, so we have added redundancy to the delivery system
2. The PTS Setups are posted to the PTS Setups Traders Yahoo message board/web site. When they are posed, Yahoo will send you another email with the information (that makes two emails).
3. The Setups are published in the Files section (see the home page) of the PTS Setups message board. You can access this information any time by logging into the Yahoo site (remember your ID and password when you join).
Every evening, Monday through Thursday, PTS publishes Updates with new information on how to trade the same or new stocks.
Getting started
Even if you don’t join the PTS Setups message board, you will receive the emails, but you are taking a chance that our emails will not reach you.
Once you have subscribed, you will receive an email from Yahoo with our invitation to join the board. After you have clicked on “accept invitation,” you will be taken through the login process and will have a change to edit your personal preferences. Please select email if you wish to receive the setups and updates when they are published.
If you do not receive the invitation within a few hours of subscribing, please send me an email at mlraiman@comcast.net. You will be sent another invitation. Invitations expire in a few days, so try to use it immediately.
Trading the PTS Setups
The PTS Setups are very accurate since they are developed on the PTS trading software. We often use the word trigger. The trigger is an entry point, above which you go long and below which you can short. This is very often your risk and is helpful in computing stops and setting trailing stops.
Most of our traders place the stock symbols, and the long and short triggers in an alert window. I trade on InstaQuote and the alert window is one of the features of the InstaQuote charting.
In order to speed up the data-entry process, you will find the setups and updates Excel format on the files section of the message board. Simply highlight a column of data and paste it into the alert window using <control C> to copy and <Control V> to paste.
The trigger, support and the resistance areas are actually fairly broad areas, not exact prices. So be careful before jumping in—watch your timing and watch how the markets are doing.
Many of our traders also watch a daily pivot chart computed from the high, low, and close of the previous day. This is also available on InstaQuote.
In addition to all of this information, PTS will often give you commentary about a specific stock, the sector or industry group, the average true daily range, and the date of the next earnings announcement.
PTS stock picks are generally highly liquid, optionable, and have a relatively large ATDR (average true daily range). The exception would be a stock that PTS indicates has the potential for a large move that normally does not have great range.
These stock picks are used by both day and swing traders and have the potential to make significant moves in both directions. Therefore, PTS supplies both long and short triggers.
Many of the picks will provide trades throughout the week. For example, a stock might trigger long, provide a nice trade, and then reverse for a major short. You will have to reset your trigger (entrance price) in such as situation, which is relatively easy with the PTS platform. We usually do this for you with the evening updates.
Many of the setups are reversals. There are only two types of plays: reversals and continuation plays. If a stock on the list is overbought, it may get more overbought and, in fact, become an excellent day-trade or swing trade long. If that is the case, I recommend that you buy on a dip back into the longer trend since this is the safest trade. On reversals, take a trial entry on a shorter chart and see if the longer charts confirm your decision. If not, you have a failed trade with a profit. If you have already taken the PTS course, then you understand the failed-trade system; if not, then use your current timing system to confirm your entries.
If a trigger price is given and the trade does not trigger, then reset your trigger after each trading session until you get an entrance (again, we often do this for you). Example: There might be a trigger price (long) at 30.30 but the stock falls 90 cents on Monday. If that is the case, you may have to reset your trigger (the price you enter the trade). We often select stocks that are overbought or oversold so that swing traders will get the maximum move. Almost all of the picks will eventually trigger; however, we don’t know what the market or a particular sector or industry will do during the week since external forces such as news, the markets, and earnings have an immediate affect on how stocks (and options) trade.
Always check the news and earnings date prior to entering a swing trade. We recommend that you do not hold through an earnings announcement.
Always enter a long as the price goes up through the trigger and a short as the price moves down through the trigger.
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The PTS Setups are a subscription service. Please do not share the setups with other traders or post the information on message boards. You may discuss the trades on the PTS Setups Message Board.
Other Trading Tools
In addition to the daily pivots which are automated on the InstaQuote platform. We also watch the indices. You can watch any specific index in which you are interested in in addition to the usual Dow or S&P 500.
PTS also recommends watching at least two charts with the VIX running. The VIX moves contrary to the markets, so you will catch the overall trend as well as the daily pivots, pullbacks, rallies, etc.
How to Use the Setups
The Daily PTS Setups
Every evening you will receive the PTS Setups for the coming day. In the example below, you are given the name of the stock, the current price, the long and short triggers, the sector/industry group, the average true daily range, and the date of the next scheduled earnings announcement if we are in earnings season). If the trade has a large potential move, PTS will provide a suggested strike for options traders. All PTS selections are optionable.
You don't have to take all the trades that trigger--in fact, it's almost impossible. You might select just certain stocks that you wish to trade. Perhaps you have a small account and only wish to trade the less expensive stocks. Perhaps you are an options trader; in this instance you might select the trades based upon potential move, cost of the contracts, liquidity, and other factors.
PTS used to give one group of setups for the week and then update every evening. This changes on June 4th. We now add new trades, often every day. The table of trades has changed with the system which has already proven to be very successful.
Understanding The Table of Setups
Look at RVBD on the table. The red box around the setup indicates that this is a new setup for this trading day.
Look at LVS. The black type indicates that this stock has not triggered either long or short. We are still waiting.
Notice that LVS is a casino and has a daily range (ADR) of 2.27.
You should buy LVS (go long) above 81.25 with a first target of 82.29.
Look at FRPT. Notice that the Short trigger and targets have been highlighted in red. This indicates that the trade has already triggered short. The date the trade was entered in also listed. In this instance, it was on June 4th. Notice also that both the first and second targets have a line through them. This indicates that both of the targets have been reached. The comments mention that the stock is still a short. Swing traders often remain in these trades for days. Day traders often take profits on the first day of the move. There are plenty of trades every day.
Finally, notice that JOYG has the long trigger and targets in red type. This indicates that these are new numbers for this trading day. We always follow shorts down with new long triggers. We always follow long trades up with new short triggers.
Setup Your Alert Window
Once you have selected the stocks or options that you wish to trade, the next step is to set up an alert window. The example to the right is from the InstaQuote trading platform. It will let you know immediately if a stock hits a long or short trigger. Depending upon how you set up the window, you can have a sound, a popup box, and of course, the alert lights up.
If you find it difficult to add data to the DAE alert window, try maximizing the window to full screen. It works well that way.
You can type in the individual symbols and prices, or you can paste the information to the window. You will find the chart in the Files Section of the PTS_Setups Yahoo Message Board. The setups and the updates are uploaded every evening. You can highlight a column with you cursor, hit Control Copy (C), and then place your cursor at the top of a column on the alert window, and hit Control V (paste). It just takes a second,
You will be working with and modifying your alert window all week long. It is the key to finding trades as they happen.
Alert Window Ready to Go Before the Market Opens
Alert Window In Action During the Market
The Evening Updates: Using The Comments
The updates have comments about how the stocks (options) are trading, where they might go, new targets, etc. Occasionally, you will be given tips on how to get into a trade that is already underway. If you want in, then place the trigger in your alert window. An example (above) is EOG which lets you know that, even though this trade has already triggered and has moved up, you can get in at 74.74 for a scalp of about 80 cents. If you want this trade, then enter 74.74 in you alert window next to EOG. It's that simple.
The Precision Trading System (PTS) has grown to be one of the most successful trading systems available to traders, worldwide. It is an outgrowth of years of mentoring traders. Our greatest concern is your sucess. As we develop new information, you will be promptly notified.
Someone mentioned that it was hard to catch all the trades. That's true, there are so many good ones and most are triggered at the open, so how do you go about focusing, selecting and entering a
trade.
Mel's picks work either way, but I have always found (and PTS has not yet been an exception) that when you trade with the trend, you get the best results in terms of success rate and in terms of percent return. I have only been at it for a couple of weeks but here's what I decided to do.
SUNDAY: I review the charts for all 15 stocks. Week, Day, 360, 180, 90, 60 and determine if it is long, neutral or short stock. I put them in a spreadsheet, highlighted by type of trade and sortedwith the strongest trends first. I enter these in my platform (IB) with the trigger and the corresponding options. If I find a strong long stock, I'll only trade it long. This cuts down on the number of alarms going off and helps me get better results. Take FFIV this week. Tuesday afternoon, my option is up $3.10 or 66%.
MONDAY: Now I have fewer triggers, I struggled with this b/c his picks work both ways, but I was missing so much and missing the really good ones. If I have a neutral stock or a weak trending
stock, I’m exiting the trade by about 11am on the day that it triggers. First, I review the charts, and I exit most trades unless I see some really convincing arguments. I've watched non-trending
stocks reverse dramatically. Yes, sometimes I miss bigger moves, but I've walked away with profit.
TUESDAY: I run through the charts really quickly basically to check the neutral and weaker trending stocks to see if anything happened to change the bias. I enter the new triggers and options and I repeat.
I'm getting into only a few trades a day, but they have been the really good ones. Again, take this for what it's worth... I've only been doing PTS for a few weeks, but stocks and options for longer and I have certainly experienced better returns on trending stocks when I go with the flow.
Legal Disclaimer
The PTS Setups are provided to traders at their request for their personal use. Commercial use is prohibited. PrecisionTradingSystem.com, Raiman Associates, or Michael Misunas assumes no responsibility for trading results. Since there are many variables inherent in trading and investing including the skill level of the individual trader or investor, the individual’s ability to effectively interpret the PTS charts, the direction and trends of the various markets, the execution of the trade, either electronic or by phone, and the trading characteristics of the particular medium (e.g., stocks, options, futures, commodities.), it must be assumed that there will be a range of individual success when applying any trading system.
ALL CONTENTS OF THIS WEB SITE ARE COPYRIGHT 2007 BY PRECISIONTRADINGSYSTEM.COM. ALL RIGHTS RESERVED: REPRODUCING ANY PART OF THIS DOCUMENT IS PROHIBITED WITHOUT THE EXPRESS WRITTEN CONSENT OF PTS SETUPS, the Raiman family or Michael Misunas. Protected by U.S. Copyright Law {Title 17 U.S.C. Section 101 et seq., Title 18 U.S.C. Section 2319}: Infringements can be punishable by up to five years in prison and $250,000 in fines.
Trade Types
There are two basic trades: reversals and continuation trades. As we teach in the course, continuation trades are often less prone to succeed and are more difficult to see because, by definition, they have been moving in one direction for a while. Nonetheless, many of our best trades are continuation trades.
When a trigger is given for a continuation trade, there is a reason for the trigger, or entrance price. It may be above previous resistance, or breaking out of a channel. Nonetheless, reversals are easier to see. If you prefer trading reversals such as V bottoms or tops, then only place reversals on your alert window.
Resetting Triggers
You can and should reset your triggers throughout the day. The is relatively simple, especially if you have PTS. Let's say we are watching MBI which has been long but the 15 has fallen below the channel. You should be able to visualize at what point is will have a long trigger. Use the WM6 to help you set a new long trigger. You should also be looking at longer charts to see where they are and how they are trading. If they have just flattened out (bounce look) and it looks as if the stock will continue long, then you can take a new long when it triggers. This is what happened to MBI today and the move up from the new intraday-day trigger was about 1.60.
Invalidating Triggers
Example: A stock has a long trigger of 30.50 and a short trigger of 29.50. It opens at 30 and falls to 27. In the afternoon is begins to move up and by 3PM it is at 30.50, the original long trigger. The long trigger is invalid. The long trigger was down in the 27 area where the stock reversed long. The original long trigger has become a resistance area. This ties in with the preceding paragraph.
Trading the Setups/Trading Tips
Here are few basics and tips that might help. I am addressing this information to traders with PTS charting. If you don't have PTS charting, I assume you are watching some sort of linear platform, i.e., you are watching price movement. Trading without watching price movement is like riding a Harley with a bag over your head.
Check your charts before taking a trade. If the trade doesn't look good to you, don't blindly take it. If the stock is trading badly, don't take the trade. If volume is missing, if the indices are opposite your intended trading direction, if the time of day is wrong, etc., don't take the trade.
If the stock falls or gaps down at the open, the long trigger may be invalidated. Just the opposite for a short. If you have PTS software, you can reset your triggers. I often reset triggers throughout the trading day.
Plan your trades. Look over the setups ahead of the market and pick the ones you wish to trade. Remove the others from your alert window. You might like a short on a particular stock but not the long. Remove the long trigger from your alert window. If you are going to trade options, select your strikes before the market open.
Look at the targets. There may be an initial point ($1) on the long and a potential 5 points on the short. If you want a swing trade or a very big move, eliminate the long from your alert window.
Need help? Contact Coach Mike by email: ptscoach@bellsouth.net.
