MarketClub is a trading system developed by Ino.com. It combines a scanning system for stocks (also futures, precious metals, mutual funds and foreign exchange), a charting platform, and a trading system all in one package.
The system is based on the premise that the smart money leaves a trail behind on a stock chart. Before the general public knows about an impending move in the market, these smart traders are quietly accumulating shares of stock.
But this accumulation always shows up on stock chart. Market Club seeks to identify these movements before the public.
How professional traders rob the public
This is how it works...
- Moves in the market begin with the smart money quietly buying up shares of stock in a particular company. They may have insider knowledge about a future development in the company.
- Months go by and the public first starts to hear about the stock. But they do not buy yet. The smart money continues to accumulate shares of stock.
- Then you begin to see the print media doing articles on the stock. The public begins to talk about it on the internet. They buy a few shares.
- The hype begins. The smart money has already loaded up on shares so now they try to sell them off to the public to make a profit.
- Full hype mode! The stock makes the front cover of magazines. All the financial gurus begin talking about the stock and the public begins buying shares in large quantities.
- The smart money takes their profits, there is no one left to buy, the stock tanks, and the public loses money.
So that is what Market Club does. It seeks to find those stocks at the beginning of the "markup phase" before the public knows about it.
How does Market Club work?
There are 3 different trading systems to use at Market Club depending on what type of trader that you are.
- Short Term Swing Trader
- Intermediate Term Trader
- Long Term Investor
Each type of trader will follow a different set of rules that will tell them whether to go long or short. They don't recommend day trading.
The "go lights"
These lights will be green or red depending on what the stock is doing at that time. The reasoning behind these lights are explained and there is a detailed video on how to get the most of them. You trade according to these lights and what type of trader that you are.
The charting platform
Here is a small screen shot of how their charts look. On each chart, buy and sell arrows are generated to tell you when to go long or short (buy or sell).
How to use the trade triangles
For short term trading, you wait for a buy signal on the weekly chart which will show up as a green arrow with a 'W' in the middle of it (see chart above). Once that happens, then you wait for it to trigger on the daily chart - which will show up as just a plain green arrow. You would enter on this day.
In the example above, Apple (AAPL) triggered a weekly buy signal on March 13th. You do not buy it here. Instead you would wait for the stock to trigger on the daily chart as well. This happens on April 1st and it shows up as just a plain green arrow (see chart).
This is the day that you would buy the stock. After you buy the stock, then you just wait for a red down arrow to appear. Then you sell your shares and take profits.
In this example, I used a combination of the weekly and daily charts for short term trading. They actually recommend that you use Market Club with a combination of the monthly and weekly signals. You would wait for a stock trigger on the monthly chart and then get your entry off of the weekly.
Some of other the features with the charting service are:
- Automatic Fibonacci lines
- One click switching between time frames
- Trend line tool
- Ability to add technical indicators
- Adding and saving charting templates
- Creating and saving watch lists
There is a also a "Talking Chart" feature (patent pending). When you click on the button, a voice comes on that gives you a brief overview of the chart that you are looking at and how to trade it. That is really cool!
Another feature of the Market Club service includes a section called Trade School. This area of the website has audio files and PDF downloads loaded with lots of information on technical analysis.
This includes tips and tricks from some of the top traders in the business including Linda Raschke, Mark Cook, Chuck LeBeau, and others.
Overall, I like this service. The trading methodology is sound. I think the system gives buy signals a little too late at times, but it keeps you in the stock for a longer period of time. So, you kind of have a trade off there.
The charting platform is flash based so it can be a little "buggy" once in a while. I do like the "one click" switching between time frames and the automatic Fibonacci tool. That makes analysis fast and convenient.
Also, there are some excellent videos on the website that you can watch at no cost.