Let’s face it. Recently, the market is more anti-persistent than ever. It just doesn’t trend at all. If we can get a 2-3 day move in one direction, it is remarkable. Most of the time, it is just moving sideways. During these times money management becomes more important than ever; protecting the gains you have made.

When trading the forecasts from the EminiForecaster service, one of the first things I want to know is whether any key levels (from the updates section of the member’s area) have been hit during the week. If a key level is hit and a strong reaction occurs contrary to the forecasted direction, it tells me to get serious about my risk control.

There are really three components to the service that help users benefit the most. Many people believe it is just the G-lines (our forecasts). In fact, the forecasts we post on Sunday are just a generalized cycle we see going into the next week. Every little wave inside these forecasts is not intended to be followed to a “T.” It is a directional forecast and a graphical way of showing where we see the next market turn coming.

These two factors, direction and pivot time can be seen on the forecast, but due to the fact that the bigger wave is not seen on the weekly chart, we summarize the forecast in the updates section of the site.

Another factor that requires consideration is the management of gaps. When entering trades at or around large gaps in the price on the open of the day session, it is important to note whether the market is being driven by large participation into that gap. Breadth measures such as NYSE advancers/NYSE decliners can reveal much about this. Strong values can reveal there is wide participation supporting a gap. Another factor with gaps is the magnitude of it. When you see the market gapping over 1% on the open, it is a dangerous place. Often these gaps can run, but if they begin to fail, it is important to control your losses and preserve your gains as best you can.

It is also beneficial to know what is occurring on the news front. Lately though, it seems any good news at all is hyped into a short lived rally. This occurred several weeks ago when the revised GDP numbers were released on Thursday. The news releases can be found at the bottom of the training area of the site.

There is no doubt these news releases, with supporting participation can make our forecasts be off. If the story and participation is of sufficient magnitude, it can be by large margins too.
For those who trade on any time frame, we also recently added the updates/alerts feature to the platform. This is intended to help you to confirm if the forecast is running right at the current time. It can also be used as a standalone service, because it gives excellent forecasts in its own right. Forecasts that are shorter term than the weekly forecasted G-lines.

Used together, these update/alerts, in conjunction with the G-line forecasts and the Key levels, you really have tremendous flexibility as to how you can use the service to your benefit.

As we have mentioned in other articles, it is paramount you trade in a manner consistent with your own personality. These tools make it possible to do that relatively easily. You still have to manage your risk prudently though.

As mentioned, always be sure to tighten up as the market hits key levels, in strange gaps and at forecasted turning points. Often it appears the market is not following the forecasts early in the week and it comes back to be right (snap-back). Often when this occurs, it can be due to one day being off out of the five in the forecast. Because the market has been anti-persistent, these things are more important than ever to manage your risk and identify where things are not going your way in advance.

When using the service, be sure to read the updates carefully. We might describe an aspect of the G-line that will be important to you later in the week. We never put comments in there that are idle babble, so be sure to get the most of it.

Being a successful trader requires a lot more than just buying and selling. It is a battle with the forces of the market and a battle with you to deal with your own fear and greed. To make the right decisions in this context is tough to say the least. EminiForecaster provides the tools to help you be most effective in this way and to help make your money management decisions clearer.