The Wealth Factor
Stock Market Strategies, Segment 7
By Dr. Stephen Cooper

A Dose of the Real World

Over the past weeks, I have been bringing you along in your understanding of the stock market and how you can make extraordinary profits in it. Would you like to see how this information is applied in real life trading? Take a look at the following chart.

Recall the steps that you’ve learned thus far. The first thing to determine is the trend of price. The trend is clearly up as shown by the blue trend line. This tells us that we will generally do best by trading in that direction. Next, we look for a short term departure from the trend. This will be demonstrated by the bouncing red line at the bottom of the chart. When it gets below the lower horizontal blue line we know that enough selling within the bigger uptrend has taken place to be significant to us. At this point a trade is imminent. On July 1st I wrote the following to my students, “Entered long QQQ August 29 calls today.” My entry price was $1.75.

On the next chart, you’ll see the exact trade entry point.

The open of the trade was made as prices began moving back up in harmony with the established up trend.

July 1st was a Tuesday. The markets were closed on Friday July 4th so the trading week was shortened. On Monday July 7th I sent an e-mail to my students telling them that I was going to close this trade. When I did the price was $3.00. So a profit of $1.25 was realized in the space of 3 trading days. $1.25 doesn’t sound like a lot? Think in terms of percentage to get an accurate read on how the trade went.

This particular trade gained 71% in 3 days.

As you can see, even a basic understanding of how to read the charts can produce incredible effects for you. In reality, a basic understanding is best. Simplicity has an elegance all its own. What could be simpler than 71% on your money in a few days?

Dr. Stephen Cooper is the Director of, a training and support Web Site for both beginning and advanced traders. Over the past four years, Dr. Stephen Cooper has been the primary Stock Market Trainer for Mark Victor Hansen and Robert Allen’s Enlightened Millionaire Institute. He has taught thousands of students his proven trading strategies. He is the author of The Online Option Trader, Windows to Wealth, and The Truth About Money. He has also authored 10 interactive chart analysis tutorial CDs and contributed to several newsletters and publications.