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Just three simple tricks can greatly improve your results when you trade using the camouflage technique. We cut to the chase in this lesson, focusing on those tricks rather than getting bogged down in such Hidden Pivot ephemera as ‘k-A segments’, distinctions between ‘internal’ and ‘external’ peaks and all the rest. The tricks are proprietary, but if you want a quickie refresher on how to use them, this recording is a must-see.

Every now and then, a seemingly perfect ‘camouflage’ set-up will produce a losing trade. When this happens, as occurred in December Gold during this session, don’t despair or swear off Hidden Pivots. Instead, you should take the failure of the trade to pan out as a sign that your trading vehicle is about to head in the opposite direction. The best way to capitalize on this is to jump on the very first camouflage ‘trigger’ headed the other way. December Gold misbehaved in exactly this way. _______________________________________________________________ By Brian Catalucci on September 13, 2013 Using puts and calls to play directional hunches is akin to using numbers cribbed from Chinese fortune cookies to play the lottery. In either case, your chances of coming out ahead are slim to none. For a look at how badly the deck is stacked against you, check out the anatomy of an option trade in which our primary goal was to keep risk and reward in a 1:3 relationship.

Using puts and calls to play directional hunches is akin to using numbers cribbed from Chinese fortune cookies to play the lottery. In either case, your chances of coming out ahead are slim to none. For a look at how badly the deck is stacked against you, check out the anatomy of an option trade in which our primary goal was to keep risk and reward in a 1:3 relationship.

When using put or call options to trade, we should always strive to make these gambles risk-free, since directional plays based on gut hunches are longshot bets. The simplest way to do this entails legging into bull or bear spreads so that the cost of the options one has sold short equals or exceeds the price one has paid for options bought. This produces a ‘credit’ spread. Obviously, it entails buying and selling the options at different times. In this lesson, we looked closely at how to do this, focusing on a riskless put spread in Yahoo! that had been recommended to subscribers. ________________________________________________________________ By Brian Catalucci on August 18, 2013 Stocks were falling when this lesson began, but we went cautiously against the trend in Google to come up with a winner that took all of three minutes to play out. Who cares about the trend when one can make $500 in just a few minutes by catching a small twitch up or down in a $900 stock? In an average day, Google probably twitches hundreds of times. You may be surprised at how easy it is to spot the nervous ups and downs that can deliver quick, painless profits.

Stocks were falling when this lesson began, but we went cautiously against the trend in Google to come up with a winner that took all of three minutes to play out. Who cares about the trend when one can make $500 in just a few minutes by catching a small twitch up or down in a $900 stock? In an average day, Google probably twitches hundreds of times. You may be surprised at how easy it is to spot the nervous ups and downs that can deliver quick, painless profits. ________________________________________________________________ By Brian Catalucci on August 1, 2013 Two losing trades stopped us out for small change during this session, but that was a small price to pay for the lesson learned. What are the limits of system trading on a day so trendless that the Dow was barely able to move 10 points up or down for the entire six hours? You’ll find an interesting and enlightening answer to that question in this recording.

Two losing trades stopped us out for small change during this session, but that was a small price to pay for the lesson learned. What are the limits of system trading on a day so trendless that the Dow was barely able to move 10 points up or down for the entire six hours? You’ll find an interesting and enlightening answer to that question in this recording.

Tedium on Wall Street provided an excellent backdrop for some finely nuanced reasoning and a couple of ‘Aha!’ moments during this session. Disciplined thinking is essential to the process of turning one’s Hidden Pivot knowledge into street smarts, and that is why we should take pains to think through every trade thoroughly, even trades that have not worked. Pay particularly close attention to the reasoning behind a scalp-trade we considered in Google, since it contains some useful ideas for making money on even the most trendless days.

Just ahead of the Fourth of July holiday, the markets were even more squirrelly than usual. This proved especially challenging, since a few of the camouflage opportunities we considered came and went in the blink of an eye. Our solution was to use some old tactics, including bottom-fishing the ‘D’ correction targets of patterns that looked like they would work perfectly. For a close look at them on the 15-second bar chart, have a look at this recording, since it contains some excellent specimens.

Sometimes a seemingly perfect camouflage set-up will fail to produce a profit. We’ve all seen instances where a trade initiated at x caught a ride to the p midpoint but went no further. The tendency is to think we’ve done something wrong, but you should consider a second possibility – i.e., that the trend is simply too weak to reach the ‘D’ target of its minor camo pattern. In such situations, the best response is to jump on the next signal taking you in the opposite direction. This logic is demonstrated nicely in the recording. We were able to foresee a nasty reversal in August Gold later that day because of the failure of a minor, very tradable, uptrend to perform.