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The Day the Whole World Flashed Red

On any given day when the markets are open for business, if you walk into the office of any professional trader, you will see him seated comfortably at his desk chair, a tall mug of coffee within easy reach, with his eyes riveted unwaveringly and his focus firmly fixed upon the semi-circle of computer monitors spread out before him. Glancing at those multiple monitors, you will see a proliferation of ever-changing multi-colored streaming charts, a constant flow of real-time financial news from various news-sources, and ten or twelve categories of ever-shifting streaming data on dozens or hundreds of stocks, options, ETFs, indexes or currencies—thousands upon thousands of constantly-changing numbers, flashing red, green, red, green, red, green, red, green.

And that’s how I appeared, too, on that morning, a few years back. My home-office opens out onto a vast wooden deck and, through several large picture-windows, looks out over a beautiful forest—the edge of which is just a few feet away—which drops sharply down to a swiftly-flowing stream, about eighty feet below.

That particular late-summer morning, resplendent sunshine filled the world and beamed brilliantly in through every one of those windows. It was a glorious morning, and its splendor seemed to be enthusedly ringing out throughout the world, judging from the continuous widespread flashing of green lights streaming real-time on one of the monitors on my desk before me, during the pre-market trading-session. All the world was happy; and it was going to be a wonderful UP-day for the markets.

It was about 8:45 a.m. (eastern time); and with my focus fixed upon all those flashing GREEN lights, I was formulating my trading strategies for the day, as usual.

Then suddenly I gasped in bewildered astonishment as, simultaneously, every single one of the one hundred stocks on my two streamers flashed red, and everything remained blood-red as prices immediately began plunging precipitously off a cliff.

My wife heard me gasp, and was by my side within two seconds. “Turn on the TV-news, fast!” I said to her. “Something horrible just happened!”
She did so; and as the screen fired to life, the very first image we saw was that of a fireball and massive plume of smoke, as a huge airliner crashed into the side of a giant skyscraper.

It was Tuesday, September 11, 2001—The Day the WHOLE WORLD Flashed RED.

When I first became a professional trader, during the tech-boom of the late 1990s, the only tools required to earn piles of profits were: (1) a computer with an internet-connection; (2) a funded brokerage-account; (3) a blindfold; and (4) some darts—almost any stock you bought automatically and inexorably went UP in price.

Then came March and April of 2000; and suddenly the former reality was turned upside-down: Buy-and-Hold became a near-certain prescription for financial disaster—almost any stock you bought inevitably and consistently went DOWN in price …

It was an expensive education; but the traders who wished to continue in that profession eventually rejected the Buy-and-Hold strategy, and were forced to exchange their blindfolds and darts for charts and well-considered trading strategies. And the best of those traders, after expending tremendous amounts of time and effort and money on research and testing, painstakingly formulated a number of Master Trading Techniques which generate profits almost 100 percent of the times when they are utilized.

By the time September 10, 2001, came around, I and most of the professional traders I know were already in the habit of ending each day with our accounts holding 100 percent cash; so we were emotionally shocked but not financially impoverished by the events which took place the following morning: The Day the WHOLE WORLD Flashed RED.

And for the following thirteen months, as the markets went deeper-and-deeper into a tailspin, those Master Traders comfortably and confidently extracted huge profits from the markets, each and every day—even those Traders who maintained a tendency to trade from the Long side.

How did they do it?

Without further ado, allow me to introduce you to:

The TWPS Master Trading Technique

(IMPORTANT NOTE: The TWPS Master Trading Technique only works 100 percent perfectly if the direction of the Bollinger Bands is primarily from left-to-right, rather than primarily UP or DOWN—and this will be the case, more than 95 percent of the time, and with more than 95 percent of the stocks you might choose to trade. Stated another way, if the Bollinger Bands are angled 45 degrees or more—UP or DOWN—the technique should not be used.)
Set up your chart:  Ensure first that you have a good real-time streaming chart-package, and make your chart-settings as follows:

1. Time Period: For DAYtrading, 30 minutes or one hour; for SWINGtrading, 3 days or longer
2. Chart Style: CANDLESTICK
3. Chart Frequency: For DAYtrading, one minute; for SWINGtrading, 10, 15, or 30 minutes
4. Upper Indicators: EMA (9 period) and BOLLINGER BANDS (20 period)
5. Lower Indicators: MACD (12, 26) and RSI (14)

Now you’re ready to proceed; there are three essential components of this set-up:

For quick profits with a Triple-Whammy Perfect BUY (Buy-Low-then-Sell-High; or Buy-to-Cover Short-Sell), these three legs are as follows:

1. The candlesticks will violate the lower Bollinger Band.
2. RSI must fall into OVERSOLD territory, under 30, and preferably in DEEPLY OVERSOLD territory, under 20.
3. The MACD (blue) line must be under the signal (red) line, and falling; and then must turn back upwards and cross the signal line. The crossover is the final confirmation --- but if the turn upwards is sharp enough, you know it’s getting ready to do a crossover, so it’s best to go ahead and act, if the prior two conditions are already in place.

For quick profits with a Triple-Whammy Perfect SELL (ShortSell-High-then-Buy-Low; or Sell-to-Close Long Position), these same three legs are as follows:

1. The candlesticks will violate the upper Bollinger Band.
2. RSI must rise into OVERBOUGHT territory, over 70, and preferably in STEEPLY OVERBOUGHT territory, over 80.
3. The MACD (blue) line must be above the signal (red) line, and rising; and then must turn back downwards and cross the signal line. The crossover is the final confirmation.

Utilizing this technique, you can comfortably and very profitably trade any stock, multiple times during each day, entering and exiting both Long and Short positions at the perfect points, and extracting amazing profits from the massive stream of money flowing constantly between those two Bollinger Bands.