PristineTrading

Based on my own experience as well as working with hundreds of traders over the years, I have come to the conclusion that there are three major components to winning in the stock market. An excellent Method, a customized Plan that fits YOU, and the right Mental Approach. While mastery of each of them is paramount, building the right Mental Approach seems to be the most challenging to master for the majority of traders. Without a winning attitude and the proper mindset, even the soundest of all methods will lead to lost money. In fact, a winner is more defined by mental make-up than by method. This is why the trader with a winning attitude and a faulty approach can still produce positive results, while the trader with a loser's mentality will stumble and fall, despite an excellent approach. Don't think so? What do you actually think causes one trader to play six winners in a row, and another to experience six consecutive losses? How is it that one trader can use a daily newsletter and win, while another uses it and loses? What do you think differentiates the person who buys XYZ and wins, from the person who buys the same XYZ and loses? The difference lies in the Mind, plain and simple. One of the most revolutionary axioms I have ever come across is this: "As a man thinks in his heart, so is he," and this universal truth is just as applicable to traders as it is to anyone else. Monitor the attitude of a winner and you will find a level of confidence and certainty that is almost beyond belief. And while most people will make the mistake of assuming that winners are confident and certain because they win; the truth is that winners consistently win because they are confident and certain. No method, however sound, will work for the trader who mentally pictures himself losing before each trade is placed. And no amount of Money, however large, will save the individual who secretly harbors the belief that, "Whatever I touch, turns to mush." As choice-making individuals, we must choose a winner's mindset. You can never fail, or even feel like a failure, if you recognize the simple fact that you are not your results. You create them, which means that you posses the power to alter them if you happen not to care for them. There is room at the top for all dedicated traders, but the first step is to actually believe that. The second is to start acting like it. Think the part, then act the part and the rest mysteriously takes care of itself. But don't take my word for it. Just try it. Jared Wesley

Good Morning All: If the title sounds a little confusing, it was meant to. The issue to be discussed today is not just 'when' to trade. There are trades that can be done any time the market is trading. That does not mean that you should be trading all day long, it just means that the times you pick to trade can be any time, IF you know what to trade. These next three articles will discuss this issue, and are geared toward the 'intraday trader', not the swing trader. When to Trade What, Part 1 of 3 The comment above said that trades can be done any time of the day, does that mean even lunch? Yes. While it is often much discussed 'not' to trade lunch, part of that statement is left off. Do not trade lunch, unless you know how to trade it. Lunch is the time when many traders get into trouble, because they do not realize that many things will not act the same during lunch as they do during 'non-lunch' times. The first issue to consider is the volatility and target expectations. If you could give a 'volatility rating' to the market, or stocks in general, it would look like this. If things move '1' during lunch, they move '3' between 2:15 and close, and move '5' between open and noon. If you do not realize this, targets will be unrealistic and lead to frustration. Before Open: So how do you focus your time? For many people, the time spent between 8:30 and 9:30 may be the most productive (all times are Eastern, New York, market time). Preparing your watchlist, forming a gap list, and starting a market bias can be key to how your day goes. Get ready for the open by picking the best of your favorite stocks, the best of your daily watchlist, and the best of your gapping stocks and know how you will play them, if at all, before the market opens. The First Five and Thirty Minutes: Very few traders realize the power of reversal times, or the power of having the knowledge of how to trade each part of the day. Most traders, who play trends and breakouts, should not even be playing the first thirty minutes of the day. Look at your records. The chances are that you have a very low batting average for trades taken during the first thirty minutes. The only trades that should be taken during the first thirty minutes are based on gaps or other very special strategies. The 9:35 reversal time is one of the most reliable, yet few traders realize its power. Many get stopped out of plays, rather than profiting from, the 9:35 reversal. The above chart shows an example of a price pattern that gapped bearishly, sold off hard for less than two minutes, and turned around so quickly, most traders who mistakenly tried to short the move down suffered losses. Knowing that this flurry move down offers a buying opportunity on a regular basis when played on the right stock can turn potential losers into big winners. Once the five-minute reversals are over, many stocks have solid moves into the 10:00 reversal time. This reversal time can run anywhere from 9:50 - 10:10, but the power move usually comes closer to 10:10. Trends between 9:35 and 10:00 are usually very reliable, if backed by a strategy. However, 10:00 or 10:30 are the reversal times that often set highs or lows for the day. Stocks that do not reverse at these key times may go on to be 'power trends'. Closing Comments: Traders who do not have clearly defined trading plans will not make it in this business; it is that simple. All plans should pay close attention to 'when' trades are being taken and factor in the power of reversal times. Next week, we will look at the power of these two critical morning reversals, and the arrival of lunch. Paul Lange

The EURUSD is continuing to hold its uptrend on the weekly chart after this last retracement. We are starting to come into an area where buyers on the weekly chart may become interested. The daily chart pulled back and tested the 1.3700 level and bounced a little bit. If the EURUSD takes out the 1.3775 level look for a quick move to the 1.3800 in the near term. The weekly chart on the GBPUSD remains bullish. Last week steady buyers came into the market. Watch for the GBPUSD to continue to move higher but wait for a possible PBS on the 4 hour chart near the 1.6600 area. The AUDUSD had a fairly bullish week last week as prices moved into the 40 ma on the weekly chart and the .9300 area. We saw sellers react to these levels as prices began to come off on Friday. Look for the daily chart to possible kick off a retracement to the .9100 to the .9130 area. The USDCAD still looks like the uptrend on the weekly chart is still intact after this recent retracement. The weekly chart may want to continue to come off further or base out. The Daily chart retraced and tested the 1.100 level last week. The hourly chart shows a strong amount of buyers coming into the market at the 1.100 area. Watch for the USDCAD in the short term to make another effort higher to the 1.1100 level.

Do you ever wonder what separates an average trader from a great trader? There are two very important things that differentiate these two types of traders: Discipline and Confidence. Today, I would like to focus on the latter. Being a confident trader is paramount to succeeding. Quite frankly, without it, it will be very difficult to attain a high level of success. There is a fine line between confidence and doubt, especially in trading. After several winning trades, most people typically have a positive approach to their next trade. However, after a few unsuccessful trades, many traders lose that "swagger" and the shrouds of doubt begin to creep into their mind. These demons can appear in several aspects of trading. Sometimes it's as simple as being afraid to pull the trigger on your next trade. Other times it's that strong desire to make your money back at any cost and then taking every trade you see, despite the patterns being of lower quality. Confidence will even affect trade management. For example, selling the winners too soon, and allowing the losers to run right into your stop loss, and on the extremely undisciplined side, letting losers run past your stop loss. These are just a few of the things that can happen when a trader loses confidence and let's doubt cloud their vision. This is why confidence can literally make or break a trader! I'm sure many of us have watched a basketball game in which a great player scores 50 points. After the game the interviewer commonly asks, "You were on fire! So what was it like out there?" The player often responds with something to the effect of, "I hit a few early on, built some confidence and after that I was in the zone! The basket looked twice as big as usual! I was really feeling it tonight." Trading is not much different. After 4 or 5 winning trades in a row, we believe we can do nothing wrong. Why? Confidence. On the flip side, if a basketball player misses 10 shots in a row, they might be more hesitant to take the next shot. However, the best players still want the ball. Despite missing 10 shots in a row, they still want to take the game winning shot. In this situation most average players would shy away from that kind of pressure, especially after such a terrible game. But the best always want the ball, regardless of the situation. It's simply a matter of confidence. Down to their core, they still believe they have what it takes to win the game, regardless of what happened previously. Do you have that level of confidence? How can we keep a confident, consistent approach to trading despite the inevitability of losses? The first thing any good trader will do is OBJECTIVELY evaluate the situation. Take a step back and look at the trades you've taken and ask yourself if they are within your trading plan, and what was the root cause of the problem? Were the patterns lacking in quality? Were you distracted by an outside influence or some other event in your life? Was the market not conducive to trading (i.e. a no-follow-through market)? Or was it just a matter of simple odds? Yes, sometimes it's just a matter of odds. Although it doesn't happen often, on occasion even good trades don't work. Unfortunately, after most traders have lost a few in a row, they get very "gun-shy" and start thinking about all the negative things that could happen if they took another trade. In this way, we start to question whether a certain pattern is "good enough" or whether we ourselves are good enough to make it in this business. By this point, our positive mental approach has been shattered, filled with fear and riddled with doubt. So the next time a great pattern appears; we will often pass on the opportunity, due to our increased sense of loss. One of the huge differences between a novice trader and a successful experienced trader is the ability to recognize what is happening, without letting our emotions make the decisions for us. A professional trader is a disciplined, objective individual who is extremely confident in their approach. Not only does this relate to taking trades, but it also relates to managing trades. Many novice traders will sell too soon in fear that the trade will go against them, yet they are all too happy to let a trade stop them out. The novice will take full advantage of the losers, yet cut the winners short. The root of this problem is confidence, or lack thereof. For a professional trader, his/her hope for gain far exceeds their fear of loss, whereas with a novice trader; their fear of loss far exceeds their hope for gain. The experienced trader knows that in the long run, over the course of a week, a month or a year, the odds will work in their favor. So, maybe they lose 3 in row, or perhaps they have a trade that gets within 3 or 4 cents of their target only to watch it pull back and stop them out. Despite these circumstances, they are not tempted to deviate from their trading plan when the same situation arises again, because they are supremely confident that the odds will work in their favor in the longer term. How many people have "almost" gotten to their target, only to watch the trade pull back and stop them out? What happens the next time this situation occurs? Many novices will take the money and run, in fear that the same situation might happen again. Once bitten twice shy. Yet, to their dismay, this time, the trade continues on and not only hits their 1st target, but eventually goes on to hit their final target. Frustrating isn't it!? This is why it is so important to stay disciplined and confident at all times and to not adjust your plan until you have back tested the results over a period of several weeks or several months. Professional traders come in everyday with the same positive attitude, expecting to make money. Even if, for some reason, they lose money on Monday, this absolutely will not change their approach on Tuesday or Wednesday. They wake up with the same belief every day, and that belief is the product of confidence. They are confident that what they are doing is right, and it will produce results. Even the best traders have losing trades, and on occasion, losing days. Losing is part of this business, it is completely unavoidable. It's just a matter of time before you have a losing trade. This doesn't mean you are a failure, or that you don't know what you're doing, it just means that for 1 trade out of 100's or even 1000's something went wrong. It's our job to figure out what went wrong, and to fix it. Remaining confident and positive allows the astute trader to quickly evaluate the situation and move on with even more confidence than before, because they've now eliminated one more way to lose. Remember, confidence breeds success, and success breeds confidence!! So, the next time you find yourself in a rut, perhaps having lost several trades in a row, do not let fear and doubt creep into your psyche. Just remain focused on the task at hand, which is to find quality patterns that produce results. We've all had losing trades; it's how we handle them that will define our success. Remember, those "few" losing trades will be very insignificant compared to a lifetime of trades. Don't let your fear of loss overpower your hope for gain, because the disciplined, confident trader is a successful trader! Always stay positive and objective! Jared Wesley The Confident Trader Day Trader School

Good Morning All: If the title sounds a little confusing, it was meant to. The issue to be discussed today, is not just 'when' to trade. There are trades that can be done any time the market is trading. That does not mean that you should be trading all day long, it just means that the times you pick to trade can be any time, IF you know what to trade. That is the point of this article. When to Trade What, Part 2 of 3 That was the opening paragraph last week in part one of this three part series. In the last letter we looked at some 'pre market' organization, and we discussed the first reversal time, 9:35 (all times are Eastern, New York, 'market' time). We then mentioned the next two reversal times, 10:00 and 10:30. This week, we will talk about those two key times, as well as the beginning of the 'lunch hour'. Next week we will conclude with part three. There are 9 micro reversal times. 4-5 of them are major and critical. Also, understanding HOW to use them and HOW they interact is imperative. Let's look at the morning reversals, 10:00 and 10:30: There is also a minor reversal time at 11:15. It is simply amazing how many traders do not use the reversal times to their advantage. This probably spawns from the fact that many traders do not even know or understand them. If you are one of those traders, you are going to learn something that will change your trading career in the next couple of paragraphs. A picture says a thousand words, so look at the charts below. These are the three five-minute charts of the QQQ from the LAST THREE TRADING DAYS, period. We generally give the reversal times a window of 5-10 minutes on each side. The key is when the Pristine Buy or Sell setup occurs, at the approximate time. The yellow 'stars' show the two major reversal times we are discussing. They are all happening 'right on the money', though they do not need to in order to be effective. Second, these charts are simply that last three days. They are not the result of a special search. If you continue this exercise on your own, you will be astonished. Most other days are even more amazing. Note, that the 10:00 and 10:30 major reversal times form a reversal, every time, and one of them usually sets the high or low for the day, or at least for the morning. This is typical of what you will find every day. Again, no effort was used to find these charts for this article. The only time this is not 'amazing' is when we have 'power trend' days that do not really reverse at all, and that is because the very definition of a power trend day is that the market carries a trend one way all day. Sometimes these days don not begin until the 10:00 reversal time puts in the first reversal, but these power trend days are rare; usually one every other month. Don't believe it? No problem, go take a look for yourself. Go print out a bunch of five-minute charts. Print them from the market, the futures, or your favorite stocks. Print some from this week, some from a month ago, some from two months ago. It does not matter. Then go through and draw vertical lines at 10:00, and 10:30. You will be shocked and amazed that virtually every day, you have drawn lines though the high and low of the day, or at least the high, until much later in the day. And you thought trading was tough. The next time period to look at is the beginning and ending of lunch. These times can change a little depending on if the market is 'trending' or choppy. Generally, the last true move ends around 12:20. We often count lunch as starting at 12:00, but if there is a strong trend in place, it may follow through until 12:30. On strong trend days, the last reversal around 1:30 often sets the trend back in place. If it is a choppy market (80% of the time), lunch may stay choppy, until the 2:15 reversal time. This one is usually in stone, and the whole lunch concept, as well as the afternoon reversals, will be discussed next week. Closing Comments: Traders who do not have clearly defined trading plans will not make it in this business; it is that simple. All plans should pay close attention to 'when' trades are being taken and factor in the power of reversal times. Next week, we will look at the power the lunch and after noon reversal. Paul Lange Vice President of Services Pristine Capital Holdings, Inc.

Last week the EURUSD broke to the downside completing the formation of a daily breakout failure. There will likely be some follow through to the downside, so look for shorting opportunities. The next daily support levels are in the 1.3700 and 1.3650 areas. Weekly support is in the 1.3500 area. Last week the GBPUSD pound daily broke support and started to get some follow through to the daily double top in the area of weekly and monthly resistance. There is a void down to support in the 1.6250 - 1.6300 area, so look for shorting opportunities until we reach this level. At that level there will likely be a bounce or stall. Last week the AUDUSD daily continued to consolidate bullishly making relatively equal highs and another higher low. The daily and weekly charts still look to be forming a shakeout pattern so focus on long opportunities. It may continue to consolidate some more, so the conservative play is to wait for a break above resistance in the 0.9175 area and then look for a pullback to support to get long. The USDJPY bounced at support last Wednesday on the Fed announcement, and then stalled in the area of a 50% retracement on the daily chart. From here we could go either way. If Friday's bottoming tail holds, we could get follow through to the upside to retest the 103.75 area. If we move down from here and retest last week's low, then it will start looking like a breakout failure/shakeout on the weekly, and a break of the weekly base low could see a move down to the next weekly support around 97.00. Pristine Capital Holdings, Inc.

Good Morning All; New traders often find themselves very challenged to have the discipline to follow the trading plans that they have created. The truth of it is, few have created any real plans and even fewer have a comprehensive working plan. Those that do, often find it difficult to follow their plan in the heat of the day. One of the reasons this can happen is because traders often do not spend their time properly, before, during, and after the market. Organize Your Time Of all the time a trader can devote to their occupation, most new traders usually fall into the schedule of spending 90% of their time actually trading the market. They spend 5-10% of their time preparing for the market, either the night before, or the morning prior. They spend 0-5% of their time following up on their trades after the market. Unfortunately, for new traders, this can be a big down fall. Being caught up in the excitement and overtrading, without stopping to evaluate trades, is a bad combination that can lead to failure. It is fine to be with the market all day. Just make sure your trading plan identifies what times you should be trading. It is a great idea when you start out to use about one third or your time preparing for every day, about a third of your time following up on your plays and reviewing them, and only one third actually trading. This is very different from where most new traders are. This does NOT mean that if you spend 6.5 hours trading, you must devote another 13 hours to your trading. You should have strategies identified that only take place at certain parts of the day. There should be parts of everyday where you will not be trading. You can use this time to review the morning trades, or the prior day's trades, and to update your record keeping and journals, and even paper trade new strategies. Closing Comments Many newer traders feel like they are missing something if they are not part of every possible trade. Patience will pay off for those who are selective and take the time to review each of their trades and learn from the ones that did not work out. The concept of following up on trades and how to do it is immensely important, and beyond the scope of this commentary. Make sure you understand it well, before trading.

Good Morning All; Of all the articles I have written, my favorite articles are ones that bring out some of the subtleties of chart patterns that many new traders may miss. But the purpose of this letter, "Eyes", is not to 'teach' technical analysis; that is what our seminars are for. That is why perhaps the most helpful articles, for those that listen, are the ones that talk about how to go about learning the business of trading. Through the Cracks That is correct, the business of trading. It is a business like any other. True, it does not generally involve employees or large facilities for most traders. But it does involve education, planning and preparation. Traders need to be educated in the method of making money in the markets, as well as all of the surrounding concepts that are needed. They need to plan the business in the big picture by opening accounts, allocating money, figuring out living expenses for a period of time, allocating the proper time and money to the new venture, allocating money to initial and ongoing education, as well as many other important issues. Traders also need to prepare for each and every trade by forming trading plans and proper follow up procedures, and the proper research for their trade. Let's take a harder look at the first concept; getting an education in the markets, as well as all of the surrounding concepts that are needed. Deciding what approach is right for you; fundamental or technical, long term or short term or both, using news or not, understanding how to use platforms, how to enter orders, what types of orders should be used, understanding what actually moves prices, and the 'math' of making money. It should seem obvious that everyone would have a handle on all these topics before risking capital in their new business. But experience tells me nothing could be further from the truth. Learning the actual concepts of technical trading is what our Trading the Pristine Method seminar is all about. But that course is about understanding price movement; how prices go through stages, transitions, and how to play those movements to make money. Plus a whole lot more. But many of the other concepts are things traders need to understand but often don't. Many are touched on in seminars, but some are not. It is expected that traders will learn from our free webinars, or from their broker, and maybe some are even in the 'common sense' category. Many important items seem to 'fall through the cracks'. Sitting in the Pristine Method Trading Room, I am often mildly shocked at some of the things that 'experienced' traders ask. To that end, we have created a new course, "Online Trading Essentials". It covers many important topics. If you are looking at a career in the markets, or if you have recently begun pursuing that opportunity, this class is a must. I also feel 'anyone' would enjoy the class. It is free to current clients who have attended a seminar. If you are currently talking to your counselor about becoming a client, see if you can get into the class for free. Closing Comments Paul Lange Vice President of Services Pristine Capital Holdings, Inc. Day Trader School

It was almost twenty-five years ago that I began my education on the markets and technical based trading. After a period of time using the indicator based method still used today, I came to the realization that method was too subjective. I also saw times (too many) that price could move in the opposite direction signaled by an indicator or a group of them. Pattern recognition was the only concept that made sense; however, the most powerful price concept I discovered was NFT. Before I get to the concept of NFT, I first have to touch on some basics of Candlesticks. Candlestick analysis essentially is the recognition of reversal patterns. There are one, two or three bar candlestick reversals have different names like Dark-Cloud Cover, Morning Star, Evening Star, Shooting Star, Star, Hammer, Inverted Hammer, Doji and there are many more. All indicate a turn and the probability of a price movement in the direction of the reversal. Some with a stall in momentum first or at the same time of the reversal pattern. It all depends on the time frame being viewed, so candle patterns change or can even conflict. The explanation of these candle reversals related to multiple time frames (MTF) analysis is virtually non-existent in the education industry. Why? Because an understanding of MTF makes all of these names unnecessary. If you understand that if prices move in one direction and suddenly turned in the other, it's a reversal. What difference does it make if it happened in one, two or three candles? A two or three candle reversal is a one candle reversal in a higher time frame and vice versa. It comes down to understanding MFT and retracements between reference points. You're getting an insight into Pristine education. As I studied and traded these individual candle or multiple candle reversals that had No follow Through (NFT), it became clear that NFT was a very powerful message. Price patterns are a reflection of what traders and investors believe and have acted on with real money. Money, put into action has emotion connected to it, and when beliefs and emotions in the moment change abruptly - it's a message to pay close attention to. Let's look at a normal or typical type of a reversal and an NTF. Both are tradable when combined with other supporting technicals; however, the NFT concept expands your opportunities and increases your odds of profitable trading setups. The above chart of Citibank © shows typical reversal signals within an uptrend. It doesn't matter what the name of the signal is according to the candlestick textbook. Even the novice to candle technical analysis can see the turn. Can you begin to see how the names are irrelevant now? If there was a Doji candle between those reversal candles, would it change your opinion of the turn? In the above chart of QCOM, there's a big bearish candle (doesn't matter what its name is, it's big) signaling lower prices. Rather than following through lower, QCOM had NFT and negated the bearish signal. Clearly, buyers were in control and were going to continue running over sellers. Can you imagine being a seller inside that big bearish candle? How are feeling the next day? What are going to do? As a trader or investors recognizing the NFT, can you take advantage of this? he concept of NFT is universal to all tradable instruments, since anything traded is affected by human beliefs and emotions. In the above chart of the Aussie dollar versus the U.S. dollar is another big bearish candle that had NFT. The move above that bearish candle hasn't happened to confirm the signal yet, but the NFT to it suggests that short-sellers are caught and a counter-trend move that will likely test price resistance and the declining 20-MA is coming once prices move above that bearish red candle. No Follow Through is a concept that I developed years ago after getting caught in trades based on candles that were negated. The NFT concept along with my Bar-by-Bar concept will put you the right side of most trades. While there is no guarantee of a sure thing in the markets, NFT when combined with other Pristine concepts is the closest thing to it you're going find to it. Greg Capra President & CEO Pristine Capital Holdings, Inc

Good Morning All; Sometimes identifying the process we go through in learning can help the learning process itself. For example, any difficult task, such as trading, is generally learned in four phases. This assumes of course that one even gets to the later phases. When students read the following, it often helps them understand they may be making great progress, even if it does not appear that way. The Learning Process The first phase is what we call the "unconsciously incompetent" level. This means that we do not know the material, and worse than that, we are unaware of the vast amount of material we need to know. Most traders are in this phase when they begin trading. Perhaps you know someone like this. They feel they have all the tools they need to make proper decisions and are completely oblivious to what the market has in store for them. The next learning level is a vast improvement as it is what we call the "consciously incompetent" level. At this level, the trader still does not know material, but at least they are now aware that there is a vast amount of information they need to learn and they need to begin that process. In other words, at least at this level, they are aware of their ignorance, and that is a big step forward. Many traders who seek out seminars or who begin to look for training are at this level because they have tried on their own, and not succeeded. The next level of learning is the one that takes longest time. It is to get to the point of being "consciously competent". This is all that traders should be striving for, realistically. This is the ability to be able to know and memorize all the techniques that have been studied, and to be able to reproduce them, with the trader consciously making an effort to follow the same plan every day. The next level would be the final level and considered one of mastery. It is rarely found in trading. It is the level of "unconscious competence", where all the rules and strategies fall into place without effort by the student to enforce them day after day. Closing Comments If you are learning to trade, you will pay your tuition one way or another. You can pay a fair amount toward education, or you can pay a lot more to the market. Often when you pay it directly to the market, it is more of a 'fee' because you do not get an education in return. People often put off an education thinking they will try it on their own, or they should wait for a better market. Unfortunately new traders often get the attitude of waiting to pay for an education with the profits they get from the market without an education; so it never happens. The market is ALWAYS good. There has never been a better time to get involved in the market. Paul Lange Vice President of Services Pristine Capital Holdings, Inc

Gaps occur every day to varying degrees on stocks and indices. To the stock trader, these gaps can offer enough trading opportunities to be done trading by mid-morning and many are. That being said, these gapers, depending how they have gapped, can provide additional trade setups later in the day as well as in the coming days. In this Chart of the Week, we'll review two gaps and a strategy how to have played them, use in the future and why they should continue the move. As I mentioned, gaps occur in varying degrees. Those gaps also can be in the direction of the prior day's movement or against them. With the prior days of movement the gap can be a continuation (pro) type of gap or it can be an exhaustion (novice) type of gap. The difference is based on whether the gap occurred after some type of correction within a trend, e.g., a gap up after a pullback or a consolidation base within an uptrend. The exhaustion gap occurs after prices have been trending in one direction for a period of time and then prices gap in that direction. All price movement reflects traders' and investors' beliefs and emotions; however, gaps can provide a shock element to price movement when the gap is against the recent price direction. Those educated and experienced trading gaps aren't shocked by continuation and exhaustion gaps, since they are expected based on the existing trend, location of support, resistance and pattern of candles. When prices gap in the opposite direction of the current pattern that partially or completely reverse the direction of the prior bar or two, it's a shock. The larger the immediate candle before the gap and the size of gap against it, the greater the shock and potential opportunity to profit. Let's look at two. American Express (AXP) had started to move lower with a large gap down, slightly recovered, stalled and then broke lower and closed with a huge red candle that closed near the low of the day. That day also occurred with an increase in volume. The pattern was pointing toward AXP moving lower, but that didn't happen. Rather, AXP gapped up the next day more than 50% into the prior red candle's range! Gaps like this shock traders since the prior pattern did not suggest such a large move in the opposite direct. We can correctly assume that traders are short were expecting AXP to move lower based on the pattern. What do you think they are going to do if AXP doesn't immediately collapse lower? This is what sets up a "Gap and Go" type of morning for stock traders to take advantage of. If AXP can move higher above the high (red line), it should continue moving up. But let's look at the intra-day chart that day and how it setup. On the gap up AXP cleared its resistance area, but the gap higher also leaves a partial void of support that has the potential to be filled. For that reason, entering long immediately could result in a move lower and without a clear area to place a stop-loss. What to do? Let AXP form a price pattern signaling that buyers are stepping up and taking control again in the form a reversal pattern. These patterns can happen in many ways, but the trained trader will follow Bar by Bar and see whatever the pattern is as it unfolds. The odds are AXP will move up based on the daily shock setup. AOL Inc. (AOL) is another example of a gap and shock. AOL was moving up toward resistance, but had closed strong the near the day's high and with an expanding range. The next day AOL gapped under that large green daily bar. What are all the traders that bought AOL that day now holding or anyone that bought in the prior two weeks? Right, losses! What would you do if you were long? Cut and run? Hope it comes back to get even? Buy more? The last two choices typically don't work out very well. No one likes losing, but it happens. Professional traders and investors have a plan that includes a stop-loss and stick to it. A gap lower under a large daily green candle strongly signals that prices will go lower, but gaps create voids and the intra-day entry must be formed. Here I have included the15-minute chart to see why prices stalled moving higher; the resistance (supply) to the left. The 2-minute detail provides the pattern signaling the setup on the current day in alignment with the big picture. These are some of the basics of what to look for when trading a gap. Look for daily shocks, prior areas of support or resistance where traders will take positions and a current pattern that forms in alignment with the big picture analysis. The odds will be in your side. All the best, Greg Capra President & CEO Pristine Trading

Your level of confidence (not arrogance) as a trader will have a huge positive impact on your success. The more confident you are the less time you will spend on second guessing your decisions. The more confident you are the more positive energy you will focus toward your desired outcome. Confidence is based on two things; what you do and who you are. When a trade stops for a loss your confidence becomes rattled. This is because confidence is based on what you do. When confidence is based on who you are and your ability as a trader, one who is prepared for all outcomes whether a loss or a profit, then you are consistent with yourself no matter what the result. You will feel confident because you took the loss as intended or because you closed with a profit. You will choose correctly in either scenario! This is because confidence is based on you. Each time you correctly make a decision in trading whether it is for a loss or gain, the more confident you will become with your ability to act accordingly to the current market situation in a manner that is appropriate. Your confidence is now based on your awareness as a trader (you) not on failures, mistakes or missed opportunities. Let me say that again . . . Your confidence is now based on your awareness as a trader, one who will make the correct decisions. Help build confidence by reviewing your trades diligently to discover when, why and how you chose to act during the time of the trade. It will help your understanding of the markets and yourself. The more you choose to learn from each trade failure and success the stronger and more confident you will become. This confidence will increase your flexibility in your decisions and your behavior. This flexibility will help create comfort in your trading. This comfort will feed your confidence and the cycle continues. Begin working on your confidence today. Believe in yourself and have faith in your abilities. KURT CAPRA Contributing Editor Instructor and Traders Coach www.pristine.com

Good Morning All; Have you ever felt the inability to pull the trigger to get in a trade at the right moment, and then chased the stock only to your detriment? Have you ever taken profits way before your target the first time a stock 'jiggled', only to sit on the sidelines as your stock ran to its original target? If so, you are experiencing the effects of fear. You are not alone. Psychological aspects make up 85% of the trading equation. Fear is one of the aspects. Ideally, we would all be "emotionless" traders. No fear, no greed, just pure discipline. While this may be a worthy goal, not many can take the leap to this level just because I say you need to. While most people cannot eliminate fear, there are some things you can do to keep it in check. Here are some suggestions. First, the greatest enemy of fear is a well-laid plan. Have a trading plan that you use that clearly spells out what strategies you will play, when, you can trade, when you cannot trade, how many shares you will play, how much money you are willing to lose on a single trade. There are many aspects to a trading plan, these are some of the basics. Next, plan the individual trade. When you see a trade come up that fits into your plan, study the play to find the proper stop loss and target. Play the proper share size so a stop out does not violate your maximum loss per trade. Make your decisions before the trades hit, while you have a clear level head, then follow the plan without question. You must "execute" the trades you have "planned". The next step may be the most important. Let your plan go to work. Let the play finish. Unless something changes about the trade, let it come to its natural conclusion, either the target or the stop, or perhaps management based on your plan; not an overreaction to what you see. Think about it. You have planned a trade while you had a clear head. You believe the trade is worth your hard earned money. Give it a chance to finish. There are sometimes reasons to end the trade early. Perhaps there has been a change in market environment. For example, you might be long in your play and the futures just took out key support. Alternatively, maybe you planned on reaching the target by reversal time and it is almost at the target with reversal time now here. However, this happens the minority of times; the majority of times you should leave the play alone. Do not be jiggled out by your Level 2 screen. The chart pattern is all that matters. If you are still so nervous that you can't handle it, try this next. Sell half the position at the reduced target. Get used to taking partial profits and this will let you have confidence letting the back half hit the target. This will also be likely to put you in a 'no lose' situation with the trade, giving you some patience. Good traders sell incrementally, on the way up all of the time. If that does not help, then you need to cut back on your share size so the size of the potential loss does not trigger your "pain factor". Closing Comments The real answer to this question is 'just do it', but few are able to. Playing with a share size that doesn't trigger your 'fear button' is critical until you develop a winning record. Try these ideas if you are having a problem with 'fear'. Paul Lange Vice President of Services Pristine Capital Holdings, Inc. www.pristine.com

APPLE Inc. (AAPL) moved the NASDAQ 100 Index (QQQ) for the most part for a long time, but in 2013 that disconnected. AAPL moved lower as QQQ moved higher in 2013. Now AAPL has reached a point where those that have been in love with this stock (rightly so) have to step up to keep the very long-term trend alive. AAPL made its high in mid-2012 and QQQ pulled back also into the end of that year, but in 2013 that correlation disconnected as the two moved in opposite directions. AAPL is now retesting the low it made in April and buyers have an opportunity to add to those positions. With last week's reversal in the QQQ at support and AAPL retesting the prior low made in April, it's a point in time where the two are aligned again to move higher. If one or the other fails to hold its support level shown, the odds are that the QQQ will move to the second support shown and AAPL will move to the $350 dollar area marked. Join us for this week's Free Workshops and Happy 4th of July to you all! PRISTINE - A Trading Style, Often Imitated, But NEVER Matched! All the best Greg Capra President & CEO Pristine Capital Holdings, Inc.

Good Morning All; "Nothing in this world can take the place of persistence. Talent will not; nothing is more common than unsuccessful people with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan 'press on' has solved and always will solve the problems of the human race." Calvin Coolidge. Perseverance There is a famous story that is told about a prospector that set out to find fortune in the famous gold rush days. He took his life savings and bought the necessary mining equipment, and set out for the 'hot' mining spot. After months of drilling, he was on the last hole that his finances would allow him to dig. He was running out of money, and would not be able to set up in a new area. Another man came by and observed this prospector's operation. This man had seasoning and experience and made his living picking up the deserted mines of others. He had come to recognize when the rock formations in a mine were such that a gold vein was more likely to be close. He also knew that it was not hard to pick up old mines from miners who were broke and tired and had not found their fortunes. So it came to be that this man struck a deal to buy the prospectors equipment and rights to his mine that had not yet produced one cent of gold. The prospector had been mining for months, was tired and discouraged, and happy to get a little money for his worthless mine and equipment. He quit digging and sold all to the man. The man who took over only had to dig six more feet before running into what proved to be one of the biggest gold veins of that time. Had the prospector held out one more day, skipped one lunch, taken one less break, or done anything to delve six more feet, he would have had his fortune. Read today's quote at the top of the page. It is more than just a quote to fill in space. Today, it is the theme of the story and one of the best quotes of all time, and applies nicely to trading. Most traders who come to the market are talented, smart, and well educated. Most traders who come to the market fail at trading. You must resolve to do more than rely on your past successes. Read this quote and article again. It may prove to be one of the most important paragraphs you ever read. Closing Comments The process of learning to trade is unique because in addition to learning the technical skills, you are battling your emotions all the way. You will find that you will accumulate lots of knowledge, without seeing a marked improvement in your trading results. Then, all of a sudden, you will have what seems to be an epiphany, and soar ahead, and wonder how you could have even struggled at something so easy. Then you will stumble, and doubt if you are really making progress. If you are going to be successful, you will find your stumbles are less severe, last shorter each time, and your surges ahead are stronger. Paul Lange Vice President of Services Pristine Capital Holdings, Inc.