1. Jesse Livermores Secret To Success
4. How to win in the stock market
5. Commandments to follow
6. 10 Rules for Investing
7. How to survive a stock market crash
8. William J ONeil, CANSLIM
9. Dan Zanger, Wyckoff mark up trader
10. Barry Ritholtz keep it simple stupid
11. Gerald Loeb how to win
15. Chuck Hughes 7 times World Trader Champion
18. Indicators Introduction
19. Richard Wyckoff method
20. Richard Wyckoff studied Jesse Livermore
21. Bob Evans, renowned Wyckoff teacher
23. William Gann life story
24. William Gann Law of Vibration
26. Wyckoff method improved1
27. Wyckoff method improved2
28. Original Wyckoff and Wyckoff 2.0
29. Wyckoff 2.0 vs Others
30. Wyckoff 2.0 and Volume Spread Analysis
35. Cycles for short term speculation
41. RTT Wyckoff Short Term model
44. Proprietary Indicators (PI)
49. PI: RTT Rainbow Bands
52. PI: RTT Wyckoff Strength Weakness
53. PI: Proprietary Indicators Caution
Chuck Hughes 7 times World Trader Champion
For someone who had to learn discipline upon entering the Air Force as a young man, Charles Hughes has fully embraced this skill to earn significant profits in the stock market.
Chuck Hughes, 59 of Moorestown, N.J., is now a seven-time winner of the (real money, stocks only, 4 month period) Robbins World Cup Trading Championships. [2009 122%, 2007 229%, 2005 30%, 1999 315%, etc].
Chuck learned from Larry Williams (also a winner of the trading world cup) that you can make profits from the stock market with a disciplined approach. Chuck Hughes developed several simple trend following systems to profit with via option strategies. Chuck has posted his tax returns and brokerage account transactions online to prove his success.
Websites for Chuck Hughes: Home page, YouTube Videos, Online Services
We are not members or own any of Chuck Hughes educational products, but we have reviewed his intermediate stock trend system (from information online).
Chuck Hughes Intermediate Stock Trend System
All specifications below are required to take a high probability long stock option trade.
Video References: Trade Selection, Fundamentals, Trend Trading, Trade Signals, Stock Selections, Option Selection
- Select trend direction based on the long term Index (SP500) trend by price above or below 20 month EMA.
- Select stocks in leading industry groups or sectors
- Select stocks with frequent new 52 week highs
- Select stocks with good Fundamentals. Growth in Stockholder equity (or Retained Earnings), as stockholder equity growth has a high correlation to growth in the stock price.
- Select stocks with current monthly price over the 20 month exponential moving average (EMA).
- Go long when the EMA50 is above the EMA100.
- Go long when the daily closing price is below the lower band of the Keltner Channel.
- An up trend of OBV shows the volume is supporting the price up trend.
- Selection of the option strategy, strike price and time frame are extremely critical for trade success.
- Allocation of money management principles and stop loss rules is critical for trade success.
It should be noted Chuck Hughes has many different strategies: dividends, short methods, income growth. It also should be noted that Chuck Hughes achieved great returns without real time data, expensive software packages, expensive third party system, day trading or the use of margin (debt). Chuck Hughes has been able to become wealthy through position trading and with the use of leverage (options).
Hughes Strategy vs Wyckoff 2.0
The Chuck Hughes strategy has a very high correlation to our Wyckoff 2 approach.
- Trades are made only during the Wyckoff mark up phase.
- The volume relationship to price action is critical to measuring mark up phase quality.
- Stock picking is based on selection of the best sectors, then the best stocks.
Chuck Hughes does not use Gann Angles or Hurst cycles. The Chuck Hughes method is designed to recognize stocks with an extremely high quality mark up phase. For example in 2009 to 2011 much profit was made by Hughes with Apple Inc and Bidu. We believe the price trend test provided by Gann Angles and Hurst cycles would further filter the stock selection process to find the supreme stocks with outstanding mark up phases. The selection of stocks with outstanding mark up phases is absolutely critical to Chuck Hughes long strategy success. We believe this is the reason why he achieved 90% winners. After all the most treacherous time to invest for the Wyckoff investor is during either the accumulation or distribution market phase, our research on the Chuck Hughes long strategy suggest to us that he does all he can to avoid these phases for maximum profit.
We don't know if Chuck Hughes has even heard of Richard Wyckoff, but what we can say is that from what we have seen online Chuck Hughes is an outstanding Wyckoff 2.0 trader whether he knows it or not.
High Winning Percentage Claims
Chuck Hughes has posted tax returns, videos and brokerage statements showing over 90% winners. We don't doubt the evidence displayed. But in an interview with Jon Thomas of the MadHedgeFund (Diary of) blog Chuck Hughes discloses that accuracy over all members advisory systems is between 60% to 70%. This means that members must use their own experience and skills to raise the accuracy from 60% to 90%. Of course we advocate expanding Chuck Hughes methods to include Gann Angles and Hurst cycles to find better winners. We are sure trade performance fluctuates. Of course if you have a poor selection process with poor money management you can no doubt lose all your capital.
Use of Stock Options
If the stock moves up 10%, you can gain 100% on your capital with options. If the stock moves down 2% you can lose 20% of your capital with options. Options are not for newbies. But as Chuck Hughes says the game can be learned, so why not learn it. Chuck emphasizes that option selection is critical to his success.
Chuck Hughes Online Service
We suggest the reader research internet for a complete view. We also advise a trade by trade review (of any) the service before subscribing. We are not members nor have we been members,.
Conclusion: What Wyckoff 2 can take from Chuck Hughes Intermediate Long Strategy
- Increase Wyckoff 2 trade accuracy by only selecting stocks with outstanding mark up phases.
- Use Chuck Hughes methods with our Gann Angles and Hurst cycles to achieve better winners.
- Use Stock options to secure better returns.
- Money management and stop losses are critical.
Swing Scanner adapted to Chuck Hughes technical Tests
We can't ignore Chuck Hughes achievements. We have added a few technical tests that mirror the Chuck Hughes approach to our Swing Scanner. We allow our members to find stocks that are above or below the monthly 20 EMA, with price above and below Keltner channels. Within the members FAQs we have posted an example of how to use the Swing Scanner to find the above long positions. But as always you must learn before you earn, so a full understanding of the Chuck Hughes method is required to make the correct selections.
Have a look at this Blog post : Five setups, Five winners with Coke Cola KO
NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net
.."Tape reading is rapid-fire horse sense...The Tape Reader aims to make deductions from each succeeding transaction -- every shift of the market kaleidoscope; to grasp a new situation, force it lightning-like through the weighing machine of the brain and to reach a decision which will be acted upon with coolness and precision"..
Richard D Wyckoff
Novice Traders trade 5 to 10 times too big. They are taking 5 to 10% risks on a trade they should be taking 1 to 2 percent risks.
.."Markets are designed to allow individuals to look after their private needs and to pursue profit. It's really a great invention and I wouldn't under-estimate the value of that, but they're not designed to take care of social needs"..
..“If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he is wrong.”..
.."Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway"..
Created on: 9/26/2011 11:11:03 PM Last Update: 7/28/2013 7:49:17 PM Posted by: RTT
We at readtheticker.com hold the view that a mix of stock chart technical analysis, Richard Wyckoff, William Gann and Jim Hurst methods plus market fundamentals allows the investor to formulate a very sound market opinion. These attributes are mutually inclusive and must be weighted equally before investing or trading in any Stock, ETF, Currency, Bond, Commodity, CFD or Mutual Fund