User's Guide

Tim Bovee, Private Trader tracks my trades my own accounts. My only purpose is to help educate readers on trading approaches and techniques, and mental attitudes, that I have found useful. Nothing on this website constitutes a recommendation to buy or sell stocks, options or any other financial instrument.

This website differs from other market-oriented websites in two regards: 1) It's free, and 2) it follows trades in real time. This approach reflects two core values that I have long held.

I believe strongly in the open source approach and in the duty of each of us to share our knowledge with those around us. If we pool what we know, we become better; we become awesome.

I also believe that theory without practice is next to useless, especially in the markets, where decisions are made and judged every day. So I trade, and let you watch me do it, win or lose. It's all out there for you to see, and I hope that as a result you will yourself become a better trader.

In reading Private Trader, it is important that you remember that no trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

My trading day is divided into two parts.

About half an hour after the U.S. markets open, I check my holdings to see if any need to be closed in order to preserve profits or cut losses. I also take a look at several broad market indicators. I routinely post something about this process.

About an hour before the markets close, I again check my holdings and the indicators for changes since the market opened. I also run through technical charts of high-volume exchange traded funds and company shares to see if any meet my criteria as candidates for opening a position.

My positions are either stock options spreads, or for lower-priced or less liquid issues, stocks themselves. My ideal holding period is under two weeks. Generally, I prefer to get in and out of a positions as quickly as possible.

I don't do enter and leave a position on the same day except under extraordinary circumstances. This allows me to avoid the SEC restrictions on such trades. It is for that reason that I enter trades at the end of the market day.

My analysis is done on three-month charts showing one candlestick for each day. I'm using the following technical methods at present:

pps/mfi (rsi):
If Person's Proprietary Study (pps), an indicator based on pivot points, shows an arrow then open the position if the Money Flow Index (mfi) is crossing from overbought or oversold within the last five trading days. Exit upon a reversing pps arrow. If earnings release is scheduled within a week, then the mfi need only move in the direction of the pps signal, without regard to overbought or oversold condition. The Relative Strength Index (rsi) can be substituted for the mfi in cases, such as currency pairs, where no volume data is available.

bb/mfi
If after piercing the Bollinger Band (bb) the price both opens and closes in the inter-band area then open the position if the Money Flow Index (mfi) has reversed in or very near the overbought or oversold line within the last five trading days. Exit upon the reversal of the price from the bb moving average or upon the price piercing the opposite bb and then reversing back into the inter-band area. The Relative Strength Index (rsi) can be substituted for the mfi in cases, such as currency pairs, where no volume data is available.

The pps, bb, mfi and rsi abbreviations are used routinely in my postings, as is the abbreviation "etf" for exchange traded fund. Abbreviations are usually given in lower case to avoid confusion with stock symbols.

I also post on theoretical approaches to and the philosophy of trading, including links to books that I've found to be useful and interesting. I've found that mental attitude is an imporant part of the game.

I welcome comments and questions. Please post them by clicking on the comments link at the bottom of a post.