If you are a new member in any of our programs, here are some resources to get you started. If you can’t find an answer to a question you are looking for, don’t hesitate to contact us to get the question answered.
First, click the TRAINING tab and head over to where we have some videos available for your benefit. The first one is an INTRO to DSE, where we take you through an opening session of a typical day. This will give you a quick overview of what the first part of the day will be like in the DSE chatroom. Below that, we’ve done individual videos that show why and how we use a few of the DSE’s components. Finally, there is summary video that ties it all back together.
Is the Chat room open 5 days a week? Most weeks, yes, while in other weeks, there could be only 4 days. Ken travels to various speaking engagements, which require him to travel from time to time. So, don’t get hung up on a day here or there, as the value of the service is in the experience that happens 18-22 market days each month. This also refers to whether Ken is analyzing every hour of each session, or part of the 6 hour day. He is here to give all he can, and you are welcome to enjoy what he has to give, or not. We are at your service to the fullest extent we can be.
What are the Plays in the posts for? Entries and exits are our implementation of the model that we have built. They are not intended for you to blindly follow. We are sometimes more aggressive, and sometimes more conservative, than our model. Following along with the entries and exits is intended to show by example how we use the model to make investment decisions. We maintain our “play” results to demonstrate the feasibility of the model for you to learn from. It’s not a track record, recommendation, or anything other than examples to show how to use the DSE.
Most entries and exits are performed in “ladders”. This allows capital to slowly enter a position and slowly exit a position. The resulting effect is that some rungs on the ladder will be more profitable than others.
How to you know when to enter and how many shares to enter at that time? We are only human, so we reserve the right to be wrong, like any other human. One of the things that differs our approach from others is that we build that human-ness into our system. Since we know we won’t pick the “best” price the first time (except by luck, which we never bet on), before we enter the first time, we know 5 entries we’d be happy with. We call this our ladder-entry protocol, and each entry is a “rung” on the ladder. If our models tell us to go long GS near 130 for a move to 160, we plan entries at 130, 120, and 110 to the downside, along with 140 and 145 on the upside. Now, rather than sweat a decline, we embrace it. This TOTALLY INVERTS THE PARADIGM OF MOST INVESTORS, who fear a trade that moves against them. In order for us to become fully exposed to our forecast, the first and second “rungs” must become negative to get us to the third rung. If on the other hand, GS doesn’t make it to lower rung entries, we might only become 3/5ths exposed to the forecast, making less money than if fully exposed. We don’t recognize that as a problem. It’s just how we have decided to play “our game”. We know there are always going to be “plays” to make, and we don’t have to “bet the farm” on any particular play, no matter how good it turned out to be. Hitting a home run is NOT our goal, so we don’t swing for the fence. We want to get into the Hall of Fame, and hitting home runs is a very hard way to get there. High batting average, low error rate, consistency, and enjoyment of trading and other aspects of life are how we measure our success.
Why don’t you use all your capital on every rung or ladder? Well, that is more like gambling, and less like disciplined money management. Although we are risk-managed speculators, we come from the world of risk management. USUALLY, by the time we begin entering our ladders, we believe 80% of the prior trend (that is about to end) is over. So, we try to position our entire exposure allocation in the final 20% of the “tiring” trend. We want to be “able” to have 5 plays working, so we typically allocate 20% of our capital to each of 5 potential plays.
How long do most trade plays last? Although we may identify a trend that could last weeks to months, we trade in and out of shorter cycling trades along that path. For example, if our work shows a trend that could last from July through December to the downside, we might get short half our eventual position immediately (start with 100 of our eventual 200 share position). Once we get a small completed Elliott Wave pattern, we might take 50 of our 100 short shares off. After a bounce into Fibo retracements, we might add 100 more shares, taking us to 3/4 exposure of our ideal 200 share position. When the price moves back past our original entry, we might add the final 50 shares, taking us to our full 200 share short. When another Elliott Wave impulse appears completed, we might take 100 of our 200 shares off, leaving us with a 1/2 position. When the correction appears done, we might add those 100 shares back, moving back to fully exposed again, and try to ride another Elliott Wave impulse to completion. Some of the original shares might be continually in the trade for weeks or months, while some shares might move in and out, to reduce risk or increase risk, as the Elliott Wave pattern ebbs and flows its way from beginning to end. We call this scalping against the position. Our position is short, but we scalp in and out of some shares to increase or decrease exposure and risk.
Since we try to eliminate ego from the equation, it doesn’t matter if we make more or less this way than just entering and holding the entire sequence. Our goal is to reduce emotion, anxiety, stress, and protect capital. We feel that doing it any other way is gambling, rather than risk-managed speculation, which is what we do.
Is it the goal of DSEtrading.com to give me trades to blindly follow? No. We use examples to illustrate how the power of the DSE can bring objectivity and calm to the world of active investing, trading, and speculation. Members should watch and learn what we do and how we do it for a while before attempting themselves. That way, you will understand why we got into, and, more importantly, out of an example, with the hope that you could manage yourself out of your own trade by yourself.
Can I just follow your exact examples to get the same result? Doubtful, but we believe you should learn what we’re doing, and why we’re doing it, so you can understand the basis of how we use DSE’s forecasting power. Once you understand, you will feel more comfortable with holding your own positions overnight, for days, weeks, or months, until DSE warns of a direction change.