What the FAQs

Disclaimer : The post you are about to read is my personal opinion and may not necessarily represent the truth of others. I am a high risk trader that loves volatility. This is my truth and you are free to disagree with me. 

1. What are your top trading tools and indicators?

In ZFT, we only use Moving Averages (MAs), Darvas Box Method, Fibonacci and the RSI (Relative Strength Index). Many might be surprised how we only have these four in our arsenal. 

"So you telling me, yan lang? Wala bang secret indicator?"

"Well, Wala!"

I'm not saying other indicators aren't going to make you money. I'm saying mastery is key. A person who has an understanding and can use 10% potential of 10 different martial arts will never match up to a person who has a 100% mastery over one technique.

2. How do you buy and what time of the day is it best to buy stocks?

Whatever the setup or play, I always buy in tranches - 3 tranches to be exact : Before, During, and After breakout point. The volume for all three can be equal or different depending on your risk appetite. The tranches can be done in weeks, several days or all in one day.

Here are some related posts to this topic

http://zeefreaks.blogspot.com/p/the-trend-followers-guide-to-money.html

http://zeefreaks.blogspot.com/2016/10/the-trend-following-astronaut.html

http://zeefreaks.blogspot.com/2016/04/bodega-and-law-of-equivalent-exchange.html

This is a good risk management strategy as it can minimize potential losses in case of a fake-out. This would also maximize your time and lessen your opportunity loss when your current stock hasn't broken out yet with your initial tranche while other stocks are moving. Wouldn't it be such a shame if you were fully committed on a stock that isn't moving and suddenly a super play appears?

As for when is the best time to buy, that would depend on your risk appetite. 

If you are a risk-taker, have the time, then buy during the intraday breakout and cross your fingers the trade won't explode. If the breakout happened in the morning session, expect a lot of price fluctuation and get ready to cut loss when necessary. If the breakout happened in the afternoon, there's a good chance momentum will continue until market close. 

The safest to buy is during the matching or run-off at 3:15-3:20 PM since at that point, the possibility of a whipsaw is close to none. Only problem is if prices have already gone beyond your levels of comfort. If that happens, then just say NO to that trade.

I personally buy sets of my tranches between 2:30 - 3:20 PM since this is the time where prices would likely show their true intentions - whether they would like to break-out, break-down or stay boringly put.


3. What is the difference between cutting losses and executing trail stops? How and when do you set these?

In a nutshell, trail stops are there to preserve your gains while cut points are there to protect your capital.

If you owned this port, what would you do?

Read more by clicking on this link.

If you have Questions that aren't in this post (click here), feel free to post it on the comments.