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“Trade for Life™”
an introduction to
trading for a living
Written by:
Oliver L. Velez, CEO
Velez Capital Management, LLC
Table of ContentsTradeforLife™
acompleteguidetotradingforaliving
Chapter 1: Who is Oliver L. Velez
Chapter 2: Velez Capital Management, LLC (“VCM”)
Chapter 3: Moving Averages and How to Harness their Power
Chapter 4: Reading the Language of the Market through its Bars
Chapter 5: Oliver Velez’s Market Law #1
Chapter 6: VCM’s Three Main Time Frames
Chapter 7: VCM’s Three Minor Tome Frames
Chapter 8: Putting it all Together
Chapter 9: VCM Trading Examples
Chapter 10: Trade as a Pro with VCM
Chapter: 11: Your Next Step
Disclaimer
Copyright© 2007 by Oliver L. Velez
Published by Oliver L. Velez
All rights covered
Reproduction or translation of any part of this work beyond that permitted by section 107 or 108 of the 1976
United States Copyright Act without the permission of the copyright owner is unlawful. Requests for permission
or further information should be addressed to the Permissions Department at O.L. Velez Trading, Inc.
Neither Oliver L. Velez nor Velez Capital Management, LLC is advising anyone to trade or use any system
illustrated in this course. These are educational examples of science of system testing and development that
Mr. Velez and Velez Capital Management, LLC want to share with you. None of the information illustrated in
these examples is to be construed as offers to buy or sell commodities, stocks, or any other financial
instrument. None of the information presented purports to be a complete statement of all material facts related
to trading.
Also, simulated performance results have certain inherent limitations; the results do not represent actual
trading. Since many of the trades in this series have not been executed, the results may have under or over
compensated for the impact, if any, of certain market factors, such as lack of liquidity. No representation is
being made that the systems, methods or ideas shown in this course will produce the results that are described
or illustrated.
This publication is designed to provide accurate and authoritative information in regard to the subject matter
covered. It is sold with the understanding that neither the author nor the publisher is engaged in rendering
legal, accounting, or other professional services. If legal advice or other expert assistance is required, the
services of a competent professional person should be sought.
From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a
Committee of Publishers.
Active trading is an activity that possesses a high level of risk and may not be suitable for everyone.
Who is Oliver L. Velez?
VelezCapital,LLC
aprivateequitytradingfirm • Founder & CEO of Velez Capital Management, LLC. (“VCM”)
• Co-Founder of Pristine Capital Holdings, Inc.;
Served as Chairman & CEO for 12 years
• One of the industry’s most sought after speakers on the
subject of trading the markets for a living
• Author of the new best-selling book,
“Strategies for Profiting on Every Trade”
• Co-author of “Tools and Tactics of the Master Day Trader”
The Industry’s #1 trading book
•• 2020--year professional Trading Historyyear professional Trading History
•• Instructor for some of the country’s top Wall Street firmsInstructor for some of the country’s top Wall Street firms
over the past 14 yearsover the past 14 years
•• Personal Mentor and teacher to some of the country’sPersonal Mentor and teacher to some of the country’s
biggest, most profitable tradersbiggest, most profitable traders
Oliver L. Velez’s Best Sellers
TradeforLife™
acompleteguidetotradingforaliving
An accessible, reliable course for the trader looking for profits in the
competitive, dynamic world of trading. Each section of the book offers
clear examples, concise and useful definitions of important terms, over
90 charts used to illustrate the challenges and opportunities of the
market; and how you can take advantage of patterns. Written in the
parlance of the day trader’s world, you’ll enjoy the experience of being
taught trading skills by the best of the best.
Tools & Tactics for the Master Day Trader is designed to help active
self-directed traders gain the knowledge and acquire the tools
necessary to approach the markets with intelligence and a well
thought out trading plan. This no-nonsense, easy read is meant to be
referenced by traders every trading day and covers everything from
battle-tested trading strategies to intuitive insights on psychology
and discipline. Proving once again that the best teacher is
experience, Tools and Tactics for the Master Day Trader will help
any trader with the technical skills, market knowledge, and
confidence needed to increase the odds of achieving more winning
trades and capturing profits.
Accolades for Oliver L. Velez
TradeforLife™
acompleteguidetotradingforaliving
Oliver L. Velez has been favorably mentioned and/or ranked #1 by virtually every key
medium in the industry. Dow Jones called Mr. Velez, “the messiah of day trading.”
“VCM”
An Introduction to
Velez Capital
Management, LLC
Trade For Life™
a complete guide to trading for a living
Velez Capital Management, LLC
www.vcmtrading.com
TradeforLife™
acompleteguidetotradingforaliving
• VCM is a New York City based private equity trading group
which currently employs 120 traders to trade its account.
• VCM trains (breeds) its own traders via several training
programs and recruits existing traders with a proven track
record and several years of experience.
• VCM is looking to become a major force in the equity trading
markets by building its trading team to 500 worldwide over
the next 3 years.
• VCM currently has four offices around the globe, with two
more coming soon: Moscow and Bogotá, Columbia.
• Our profits and trading volume increased 700% last year, and
we were a top 10 NYSE liquidity provider for NASDAQ.
• Our firm traded half a BILLION shares in February of 2006, a
record for a firm our size, and currently averages each month
close to 300 million shares.
Who is VCM?
VelezCapital,LLC
aprivateequitytradinggroup
“VCM”
The Bars
&
What They Mean
VCM Quote: “Profits always take care of themselves, but losers never do.”
- Jessie Livermore
The Bar by Bar Battle
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Every individual bar represents a battle that was fought by two groups, the bulls and
bears, the buyers and sellers. When the close is above the open, the bulls win, producing
the color green. When the close is below the open, the bears win, producing the color red.
How much each side wins is determined by how much green or red they produce. In other
words, the wider the distance between the open and close, the greater the win. Quite
naturally, the group winning the most bars is dominating the stock. Trading Tip: Most
successful trades are usually in sync with the winning side.
Bears WinBears WinBulls WinBulls Win
HighHigh
LowLow
Close = 42Close = 42
Open = 40Open = 40
Open = 40Open = 40
Close = 38Close = 38
HighHigh
LowLow
“VCM”
Market Law #1”
3 to 5 Bar Rule
VCM Quote: “If you believe it likely to have a definite bullish or bearish effect
marketwise, don’t back your judgment until the action of the market itself
confirms your opinion.”
- Jessie Livermore
VCM Market Law #1TradeforLife™
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Market Law # 1:
During normal market environments, stocks and other tradable items
cannot move in the same direction more than 3 to 5 bars in a row.
Different ways to communicate the law:
1) After a 3 to 5 bar run (up or down) the market/stock tends
to sharply reverse, creating a nice trading opportunity.
2) Neither the bulls nor the bears can win more than 5 battles
(bars) in a row. After a 3 to 5 bar rally, the bears usually quickly
regain control. After a 3 to 5 bar decline, the bulls usually quickly
regain control.
3) Lastly, this law can be said this way: “After 3 to 5 green bars in a
row, the VCM Trader should look to take advantage of an upcoming
series of red bars. After 3 to 5 red bars in a row, the VCM Trader
should look to take advantage of an upcoming series of green bars.”
VCM’s 3 to 5 Bar Buy Rule
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In each of the scenarios above, the VCM Trader would be looking for a tradable rebound to the
upside, once the high of a prior bar has been taken out. How much of a rebound would depend on the
answers to several key questions such as: a) is the 3-5 bar dip occurring in an up trend, down trend or
sideways trend; b) are any of the most powerful reversal signs present; c) how far away is the nearest
area of resistance; d) was there a volume surge that took place toward the end of the decline; e) where
is the dip in relation to the 20ma; and f) is the current decline potentially bottoming at or around one
of the key reversal times? The answers to all these questions are covered in the many trading concepts
taught in future chapters and throughout our 5-day live trading labs.
1) 3-5 Bar Decline – Stocks in strong up trends, as well as clearly defined sideways trends tend
to rebound after a 3 to 5 bar decline. This tendency often sets up nice trading opportunities.
3-Bar Dip 4-Bar Dip 5-Bar Dip
Trading Notes
Buy
Buy
Buyr20ma
r20ma
r20ma
VCM’s 3 to 5 Bar Buy Rule
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In each of the scenarios above, the VCM Trader would be looking for a tradable pullback to the
downside, once the low of a prior bar has been taken out. How much of a pullback would depend on
the answers to several key questions such as: a) is the 3-5 bar rally occurring in an up trend, down
trend or sideways trend; b) are any of the most powerful reversal signs present; c) how far away is the
nearest area of resistance; d) was there a volume surge that took place toward the end of the rally; e)
where is the rally in relation to the 20ma; and f) is the current rally potentially topping at or around
one of the key reversal times? The answers to all these questions are covered in the many trading
concepts taught in future chapters and throughout our live 5-day trading labs.
2) 3-5 Bar Rally – Stocks in strong down trends, as well as clearly defined sideways trends tend
to back off after a 3 to 5 bar advance. This tendency often sets up nice trading opportunities.
3-Bar Rally 4-Bar Rally 5-Bar Rally
Trading Notes
Short
Short
Shortd20ma
d20ma
d20ma
“VCM”
The Three Major
Charting Windows
VCM Quote: “Wall Street never changes. The pockets change. The stocks change.
But Wall Street never changes, because human nature never changes.”
- Jessie Livermore
Three Trading Time Frames
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1) 15-minute Chart – This time frame will be used primarily for trend analysis
and support and resistance reference points. While VCM Traders do takes
trades on it from time, its use as a gauge of the stock’s power and its
overbought-ness or oversold-ness is unrivaled. With that being said, trades on
the 15-minute chart do tend to be the cleanest and the truest. In a sense, for
the professional trader earning a living via the markets, this time frame would
be considered the “core” one, for longer term trades.
2) 5-minute Chart – This time is the VCM Trader’s number one staple. If there
was only one time frame with which to make a living, it would be this one. It
perfectly sits between the 15-minute, which can be a bit to long, and the 2-
minute, which can be a bit too noisy at times. The patterns we trade at VCM
appear frequently enough in the 5-minute window to keep us active, yet
infrequently enough to prevent us from over trading. This is “the” one, “the”
time frame to master.
3) 2-minute Chart – This fast moving chart is a god-send when the market is not
producing clear signals on the other two time frames. It’s also useful if and
when the entry and/or exit points dictated by the 5-minute or 15-minute chart
are too far away or unclear. Dropping down to the 2-minute chart for a finer
entry or exit will usually provide the alternative. We call this taking an x-ray,
or looking inside the stock.
15-minute Chart
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This time frame can really deliver some very healthy profits. The only caveat is that plays taken on it
tend to last for 30-minutes to 1-hour. The more active traders will find it hard to be patient unless
multiple plays are being managed simultaneously. This time frame is great for S&R analysis.
20ma
200ma
Gap Reversal
GBR on MPSMPS
The 15-minute Chart should always have the
s20ma and the and s200ma displayed.
Trading Tip: VCM Traders look to go long, when
the r20m is above the 200ma. They look to go
short when the d20ma is below the 200ma.
VCM Traders would look to go long
in the are of the circles. You’ll
understand each one soon enough.
The 5-Minute Chart
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The 5-minute Chart is by far the most traded time for VCM Traders. It sits nicely between the 15-
minute, which can be a bit slow, and the 2-minute, which can at times be a bit too noisy.
Charts Courtesy of Realtick®.
20ma
200ma
The 5-minute Chart should always have the s20ma
and the and s200ma displayed.
Trading Tip: VCM Traders look to go long, when
the r20m is above the 200ma. They look to go
short when the d20ma is below the 200ma.
VCM Traders would look to go long
at or near the r20ma. See Circles.
The 2-Minute Chart
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The 2-minute chart is actively used to refine entry and exit points. It offers the deepest insight and
smallest risk of the three time frames we actively trade. Stop outs can be frequent in this time
frame, but scalper traders will always be well served here.
200ma
20ma
The 2-minute Chart should always have the s20ma
and the s200ma displayed.
Trading Tip: VCM Traders look to go long, when
the r20m is above the 200ma. They look to go
short when the d20ma is below the 200ma.
Circles = Shorting Opportunities
Last two are Buying Opportunities
“VCM”
A Minor Charting
Window
VCM Quote: “Wall Street never changes. The pockets change. The stocks change.
But Wall Street never changes, because human nature never changes.”
- Jessie Livermore
The 1-minute Chart
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Charts Courtesy of VCM Trader Pro™
Bid/ Buy Zone
Offer/Sell Zone
20ma checks
the price here
Trading Tip: Once the 20ma halts the price decline, resistance is often broken.
20ma
200ma
During flat markets, VCM Traders drop down to
the 1-minute chart to play the bidding and
offering game. They buy in a range below the
20ma and sell in a range above the 20ma. Break
200ma serves
as resistance
“VCM”
Moving Average
Power
VCM Quote: “From my viewpoint, the investors are the big gamblers. They make
a bet, stay with it, and if it goes wrong, they lose it all.”
- Jessie Livermore
The Powerful 20 MA
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1) 20 Period Simple Moving Average (20ma) – The 20ma is so important to VCM Traders
that no chart is ever studied or viewed without it. That’s because its power and reliability
is unrivaled. No chart is a chart unless it is accompanied by this all-important technical
indicator. We use it on every time frame or chart we look at. Here are the most important
things to know about the 20ma and its proper use:
a) Trade with the 20ma - Most of your trades should be in sync with the 20ma.
If the 20ma is rising in a smooth fashion, your focus should almost always be long.
Conversely, if the 20ma is declining in a smooth fashion, your focus should almost
always be short. If the 20ma is flat (f20ma), your focus should be to scalp with the
VCM “bid and offer” approach.
b) Use as support & Resistance – If and when the 20ma is rising, it will serve as
strong support. If the 20ma is declining, it will serve as strong overhead resistance.
Look for buys at or near a r20ma. Look for sells/shorts at or near a d20ma.
c) Use as a median line – When a stock is consolidating in a sideways pattern, the
20ma will be flat and usually positioned right in the middle of the sideways trend.
If and when this is the case, bidding for stock in a range below the f20ma and
offering/shorting stock in a range above the f20ma is the game to play.
d) Use as a magnet – Stocks cannot remain extended too far above or below
the 20ma. If and when stocks get too far, a violent snap back is eminent. This
is when the VCM Trader can intelligently look to take advantage of a counter trend
move .
Trading Tip: Literally, a VCM Trader can use the 20ma to earn his entire livelihood in the market.
The Power of the 20ma
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20ma
40ma
The picture of power is made up of the following:
1 – Rising Stock, making higher highs and lows;
2 – Smooth Rising 20ma
3 – Smooth Rising 40ma
4 – Even Space between 20ma & 40ma
The 20ma begins to contain the price here.
Stock breaks above the 20ma
= Successful retests of the 20ma
Charts Courtesy of Realtick®.
The Power of the 20ma
TradeforLife™
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20ma
40ma
The Picture of Power
1-Rising Stock
2-Rising 20ma
3-Rising 40ma
4-Even Space
1
2
3
4
5
A
VCM Trading Tactics
A- Red Bar Ignored (RBI)
1- Green Bar Reversal (GBR)
2- Green Bar Reversal (GBR)
3- Bullish Pause Play (BPP)
4- Red Bar Ignored (RBI)
5- Green Bar Reversal (GBR)
Trading Tip: Make sure all VCM Trading Tactics occur at strong support locations
Charts Courtesy of Realtick®.
Riding the 20ma Long
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20ma
20ma begins to capture the price here.
Stock is ignoring 20ma
Holding on to all or part of your trade as long as the
stock remains above the 20ma is a very effective way
of maximizing your gains.
What VCM Traders do is sell part on momentum
rallies, and add on RBIs, GBRs and BOPs. See circles.
Trading Tip: CA puts in top
Note: VCM Traders
usually don’t carry
micro trades over night.
Low Odds
BS
Charts Courtesy of Realtick®.
Riding the 20ma Short
TradeforLife™
acompleteguidetotradingforaliving SS at d20ma
20ma
Breakdown
Cover all
Holding on to all or part of your trade as long as the
stock remains below the 20ma is a very effective way
to maximize your gains. However, once bases start to
form toward the end of the day, its time to go home.
What VCM Traders do is cover part on momentum
drops, and add on GBIs, BDPs and RBRs. See lines.
Trading Tip:
Charts Courtesy of Realtick®.
Riding the 20ma Short
TradeforLife™
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20ma
Short Here
BDP off the 20ma
Cover all here
Stage 3
SS
Holding on to all or part of your trade as long as the
stock remains below the 20ma is a very effective way
to maximize your gains. However, once larger than
normal green bars begin to form, the party is over.
What VCM Traders do is cover part on momentum
drops, and add on GBIs, BDPs and RBRs. See lines.
Trading Tip:
Charts Courtesy of Realtick®.
5-Min Downtrend
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test
Climactic Drop ends/slows down the game
1
2
3
4
20ma
40ma
Circles show VCM Trade Opportunities
Volume Surge
Chart Courtesy of Realtick®
2-min Downtrend
TradeforLife™
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20ma
200ma
Come back sometime after the course
to name these VCM trades
Chart Courtesy of Realtick®
The Mighty 200 MA
TradeforLife™
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2) 200 Period Simple Moving Average (200ma) – The 200ma is so universally watched,
in all time frames, that for all practical purposes, it has become a self-fulfilling
prophesy. So rarely do stocks fail to obey (get halted by) the 200ma that we’ve given
it the highest nick-name of all, God. It’s power, force, and reliability are so great, that
it truly is god-like. We use the 200ma on all micro time frames (1-, 2-, 5-, and 15-
minute charts). Here are a few things that you must keep in mind regarding this
mighty moving average:
a) Flatness is king: - While the 20ma is most powerful when it is rising and
declining (trending), the 200ma is most powerful when it is flat (trend-less).
b) Use as support – Whenever a stock declines to a flat 200ma, it will almost
always experience some form of rebound. If the rare cases in which it does not
rebound, the stock is almost certain to at least stop (halt its decent) for a while.
c) Use as resistance – Whenever a stock rallies to a flat, overhead 200ma, it will
almost always experience some form of retracement back down. If the rare cases in
which it does not experience a reversal back down, the stock is almost certain to at
least stop (halt its rally) for a while.
d) Use as a magnet – If a stock and its 20ma get too far above or below the
200ma, a major reversal is usually at hand. This is when the VCM Trader can
look to take advantage of a counter trend move. In other words, it’s this
scenario that allows for intelligently going against the prevailing trend.
Trading Tip: VCM Traders know that 200ma plays call for bigger positions
The Flat Mighty 200ma
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200ma
GBI
Buy RBI BO
Note rising lows
1
2
3
4 5
6
1- 200ma serves as major support near a prior low and a prior high.
2- Climactic advance begins its decline with a GBI Set-up.
3- GBI at the 50% retracement level, signals another leg to the down side.
4- GBR w/ a BT right at major 200ma and price support
5- VCM Buy Set-up on major price and 200ma support
6- 123 BO really gets going on a RBI Set-up.
Trading Notes
Note volume surge on breakout
Charts Courtesy of Realtick®.
Buying Below the 20ma @ the 200ma
The above chart offers the OLV Trader multiple buy opportunities: 1) Gap Plus (gap on the
200ma and major price support); 2) Buy Set-up at the r20ma; 3) RBI (Red Bar Ignored).
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200ma200ma
20ma20ma
Trading CriteriaTrading Criteria
*Target is always the 20ma*Target is always the 20ma
BuyBuy
Sell AreaSell Area
1 – 20ma and 200ma are far apart
2 – Stock is far below the 20ma
3 – Stock is at or near the 200ma
4 – Buy set-up occurs near a Reversal Time
Far above 20ma
h
1
2
3
Charts Courtesy of Realtick®.
The Flat Mighty 200MA
A flat overhead 200-period MA often serves as major resistance. Note how the stock
started ignoring its 20-period MA around mid-day. What do you notice now?
TradeforLife™
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20ma
200ma
What is the next likely direction in this stock? Why?
20ma is being ignored here
Charts Courtesy of Realtick®.
The Flat Mighty 200MA
A flat overhead 200-period MA often serves as major resistance. Note how the stock
started obeying the 20ma mid morning. What do you suspect is the next move?
TradeforLife™
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Charts Courtesy of VCM Trader Pro.
200ma
20ma
Prior Day’s Close (PDC)
BT after 3 Red Bars
3GBs
“VCM”
Trading Tactics
Putting It all
Together
Trade For Life™
a complete guide to trading for a living
Velez Capital Management, L.L.C.
The Trading Strategy
TradeforLife™
acompleteguidetotradingforaliving
The Buy Methods:
1) Buy Green Bar Reversals (GBR) or Bottoming Tails (BTs) at or near the
rising 20ma. – This is only to be done if the underlying stock is demonstrating
the “picture of power” to the upside (rising stock; rising 20ma above 200ma).
The GBR must occur at or near the rising 20ma, otherwise its occurrence is not
all that important. Tip: Breakouts can also be played at or near the r20ma.
2) Buy Green Bar Reversals (GBR) at or near the flat 200ma. – This is only
done if the stock has fallen back to the 200ma from a rather far distance.
Gradual erosion back to the 200ma is not what we are looking for. A sudden
drop or collapse back to a flat 200ma is what is preferred.
The Sell/Short Methods:
1) Sell/Short Red Bar Reversals (RBR) and/or Topping Tails (TTs) at or near the
declining 20ma. – This is only to be done if the underlying stock is demonstrating
the “picture of power” to the downside (declining stock; declining 20ma below
200ma). The RBR must occur at or near the d20ma, otherwise its occurrence is not
all that important. Tip: Breakdowns can also be played at or near the d20ma.
2) Sell/Short Red Bar Reversals (RBR) at or the flat 200ma. – This is only done if
the stock has rallied back to the flat overhead 200ma from a rather far distance.
A slow, gradual rise back to the 200ma is not what we are looking for. A sharp move
back to a flat 200ma is what is preferred.
2-minute Micro Trading
Charts Courtesy of Sterling Software, Inc.
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IntraIntra--day Buy Criteriaday Buy Criteria
1. r20ma1. r20ma
2. r20ma > 200ma2. r20ma > 200ma
Buy all PBSs & PBOsBuy all PBSs & PBOs
Use stops at red lines orUse stops at red lines or
use a trailing stop baseduse a trailing stop based
on the r20maon the r20ma
Trading Tip:Trading Tip:
BuyBuy
BuyBuy
BuyBuy
WideDistance*WideDistance*
*Wide distance between 20ma & 200ma calls for caution!*Wide distance between 20ma & 200ma calls for caution!
200ma200ma
20ma20ma
Stock ignores the 20ma
20ma captures the price
VCM Trading
Examples
Oliver L. Velez, CEO
www.velezcapitalmanagement.com
Velez Capital Management, LLC
a private equity trading group
VCM
One Trading Day
3/09/2007
One Trading Day
3/09/2007
1-Day Gross Profit of:
$22,124.76
1-Day Gross Profit of:
$22,124.76
Velez Capital Management, LLC
a private equity trading group
VCM
16 Symbols Traded on 3/9/200716 Symbols Traded on 3/9/2007
Velez Capital Management, LLC
a private equity trading group
VCM
Two Trading DaysTwo Trading Days
2-Day Gross Profit of:
$43,724
2-Day Gross Profit of:
$43,724
3/9/07 & 3/12/073/9/07 & 3/12/07
Velez Capital Management, LLC
a private equity trading group
Jan 03 – March 12, 2007Jan 03 – March 12, 2007
Gross Profit of:
$412,196
Gross Profit of:
$412,196
NY Prop Group Monthly ProfitNY Prop Group Monthly Profit
NY Prop GroupNY Prop Group
NY Prop Group Profit = $107,628.49NY Prop Group Profit = $107,628.49
VelezCapital,LLC
aprivateequitytradinggroup
VelezCapital,LLC
aprivateequitytradinggroup
Starting Capital: $1,174.27Starting Capital: $1,174.27
VCM Trader’s Monthly ProfitVCM Trader’s Monthly Profit
Profit of $43,865.05 made on $1,174.27Profit of $43,865.05 made on $1,174.27
Starting Equity = $53,365.79Starting Equity = $53,365.79
Ending Equity = $90,702.74Ending Equity = $90,702.74
70% Return in 20 days70% Return in 20 days
VelezCapital,LLC
aprivateequitytradinggroup
VelezCapital,LLC
aprivateequitytradinggroup
VelezCapital,LLC
aprivateequitytradinggroup
Your Next Step
to Becoming a
VCM Trader
Oliver L. Velez, CEO
Velez Capital Management, L.L.C.
How to trade morning gaps at the open for near instantaneous profits;
How to make the first 30-minutes of the day your most profitable period;
How to make the last 90-minutes of the day your second most profitable period;
How to turn the mid-day doldrums into your most consistent period of the day;
How to determine which gaps to fade (trade against) and which ones to run with;
How to make the biggest profits from stocks that are declining;
How to make your profits and your consistency soar in flat markets;
How to trade against the trend, professionally
How to profit from the fact that 72% of all breakouts fail;
How to determine which breakouts are likely fail versus those that are likely to explode;
How to profit from the fact that the second move in a stock is always its biggest;
How Market Makers and NYSE Specialists profit from retail traders each day;
How to turn 65% of your losing trades into winners with one simple strategy;
How and when to send the right orders for the fastest fills;
And much, much more
You will also learn:
How to become eligible to trade Oliver Velez’s money, while you learn his trading methods;
How Oliver will absorb all your trading losses while you learn his trading method;
Why professional traders will always have an edge on retail traders;
How to trade at institutional rates as low as $0.05 (five cents) per every 100 shares.
How you can join Oliver’s professional trading team by becoming employed by Velez Capital
Management, LLC, one of the country’s fastest growing private equity trading firms.
“Trade for Life™
a complete guide to trading for a livingTradeforLife™
acompleteguidetotradingforaliving
TradeforLife™
acompleteguidetotradingforaliving
TradeforLife™
acompleteguidetotradingforaliving
178511583 5-trading-tactics-velez

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178511583 5-trading-tactics-velez

  • 1. “Trade for Life™” an introduction to trading for a living Written by: Oliver L. Velez, CEO Velez Capital Management, LLC
  • 2. Table of ContentsTradeforLife™ acompleteguidetotradingforaliving Chapter 1: Who is Oliver L. Velez Chapter 2: Velez Capital Management, LLC (“VCM”) Chapter 3: Moving Averages and How to Harness their Power Chapter 4: Reading the Language of the Market through its Bars Chapter 5: Oliver Velez’s Market Law #1 Chapter 6: VCM’s Three Main Time Frames Chapter 7: VCM’s Three Minor Tome Frames Chapter 8: Putting it all Together Chapter 9: VCM Trading Examples Chapter 10: Trade as a Pro with VCM Chapter: 11: Your Next Step
  • 3. Disclaimer Copyright© 2007 by Oliver L. Velez Published by Oliver L. Velez All rights covered Reproduction or translation of any part of this work beyond that permitted by section 107 or 108 of the 1976 United States Copyright Act without the permission of the copyright owner is unlawful. Requests for permission or further information should be addressed to the Permissions Department at O.L. Velez Trading, Inc. Neither Oliver L. Velez nor Velez Capital Management, LLC is advising anyone to trade or use any system illustrated in this course. These are educational examples of science of system testing and development that Mr. Velez and Velez Capital Management, LLC want to share with you. None of the information illustrated in these examples is to be construed as offers to buy or sell commodities, stocks, or any other financial instrument. None of the information presented purports to be a complete statement of all material facts related to trading. Also, simulated performance results have certain inherent limitations; the results do not represent actual trading. Since many of the trades in this series have not been executed, the results may have under or over compensated for the impact, if any, of certain market factors, such as lack of liquidity. No representation is being made that the systems, methods or ideas shown in this course will produce the results that are described or illustrated. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers. Active trading is an activity that possesses a high level of risk and may not be suitable for everyone.
  • 4. Who is Oliver L. Velez? VelezCapital,LLC aprivateequitytradingfirm • Founder & CEO of Velez Capital Management, LLC. (“VCM”) • Co-Founder of Pristine Capital Holdings, Inc.; Served as Chairman & CEO for 12 years • One of the industry’s most sought after speakers on the subject of trading the markets for a living • Author of the new best-selling book, “Strategies for Profiting on Every Trade” • Co-author of “Tools and Tactics of the Master Day Trader” The Industry’s #1 trading book •• 2020--year professional Trading Historyyear professional Trading History •• Instructor for some of the country’s top Wall Street firmsInstructor for some of the country’s top Wall Street firms over the past 14 yearsover the past 14 years •• Personal Mentor and teacher to some of the country’sPersonal Mentor and teacher to some of the country’s biggest, most profitable tradersbiggest, most profitable traders
  • 5. Oliver L. Velez’s Best Sellers TradeforLife™ acompleteguidetotradingforaliving An accessible, reliable course for the trader looking for profits in the competitive, dynamic world of trading. Each section of the book offers clear examples, concise and useful definitions of important terms, over 90 charts used to illustrate the challenges and opportunities of the market; and how you can take advantage of patterns. Written in the parlance of the day trader’s world, you’ll enjoy the experience of being taught trading skills by the best of the best. Tools & Tactics for the Master Day Trader is designed to help active self-directed traders gain the knowledge and acquire the tools necessary to approach the markets with intelligence and a well thought out trading plan. This no-nonsense, easy read is meant to be referenced by traders every trading day and covers everything from battle-tested trading strategies to intuitive insights on psychology and discipline. Proving once again that the best teacher is experience, Tools and Tactics for the Master Day Trader will help any trader with the technical skills, market knowledge, and confidence needed to increase the odds of achieving more winning trades and capturing profits.
  • 6. Accolades for Oliver L. Velez TradeforLife™ acompleteguidetotradingforaliving Oliver L. Velez has been favorably mentioned and/or ranked #1 by virtually every key medium in the industry. Dow Jones called Mr. Velez, “the messiah of day trading.”
  • 7. “VCM” An Introduction to Velez Capital Management, LLC Trade For Life™ a complete guide to trading for a living Velez Capital Management, LLC
  • 9. • VCM is a New York City based private equity trading group which currently employs 120 traders to trade its account. • VCM trains (breeds) its own traders via several training programs and recruits existing traders with a proven track record and several years of experience. • VCM is looking to become a major force in the equity trading markets by building its trading team to 500 worldwide over the next 3 years. • VCM currently has four offices around the globe, with two more coming soon: Moscow and Bogotá, Columbia. • Our profits and trading volume increased 700% last year, and we were a top 10 NYSE liquidity provider for NASDAQ. • Our firm traded half a BILLION shares in February of 2006, a record for a firm our size, and currently averages each month close to 300 million shares. Who is VCM? VelezCapital,LLC aprivateequitytradinggroup
  • 10. “VCM” The Bars & What They Mean VCM Quote: “Profits always take care of themselves, but losers never do.” - Jessie Livermore
  • 11. The Bar by Bar Battle TradeforLife™ acompleteguidetotradingforaliving Every individual bar represents a battle that was fought by two groups, the bulls and bears, the buyers and sellers. When the close is above the open, the bulls win, producing the color green. When the close is below the open, the bears win, producing the color red. How much each side wins is determined by how much green or red they produce. In other words, the wider the distance between the open and close, the greater the win. Quite naturally, the group winning the most bars is dominating the stock. Trading Tip: Most successful trades are usually in sync with the winning side. Bears WinBears WinBulls WinBulls Win HighHigh LowLow Close = 42Close = 42 Open = 40Open = 40 Open = 40Open = 40 Close = 38Close = 38 HighHigh LowLow
  • 12.
  • 13.
  • 14. “VCM” Market Law #1” 3 to 5 Bar Rule VCM Quote: “If you believe it likely to have a definite bullish or bearish effect marketwise, don’t back your judgment until the action of the market itself confirms your opinion.” - Jessie Livermore
  • 15. VCM Market Law #1TradeforLife™ acompleteguidetotradingforaliving Market Law # 1: During normal market environments, stocks and other tradable items cannot move in the same direction more than 3 to 5 bars in a row. Different ways to communicate the law: 1) After a 3 to 5 bar run (up or down) the market/stock tends to sharply reverse, creating a nice trading opportunity. 2) Neither the bulls nor the bears can win more than 5 battles (bars) in a row. After a 3 to 5 bar rally, the bears usually quickly regain control. After a 3 to 5 bar decline, the bulls usually quickly regain control. 3) Lastly, this law can be said this way: “After 3 to 5 green bars in a row, the VCM Trader should look to take advantage of an upcoming series of red bars. After 3 to 5 red bars in a row, the VCM Trader should look to take advantage of an upcoming series of green bars.”
  • 16. VCM’s 3 to 5 Bar Buy Rule TradeforLife™ acompleteguidetotradingforaliving In each of the scenarios above, the VCM Trader would be looking for a tradable rebound to the upside, once the high of a prior bar has been taken out. How much of a rebound would depend on the answers to several key questions such as: a) is the 3-5 bar dip occurring in an up trend, down trend or sideways trend; b) are any of the most powerful reversal signs present; c) how far away is the nearest area of resistance; d) was there a volume surge that took place toward the end of the decline; e) where is the dip in relation to the 20ma; and f) is the current decline potentially bottoming at or around one of the key reversal times? The answers to all these questions are covered in the many trading concepts taught in future chapters and throughout our 5-day live trading labs. 1) 3-5 Bar Decline – Stocks in strong up trends, as well as clearly defined sideways trends tend to rebound after a 3 to 5 bar decline. This tendency often sets up nice trading opportunities. 3-Bar Dip 4-Bar Dip 5-Bar Dip Trading Notes Buy Buy Buyr20ma r20ma r20ma
  • 17. VCM’s 3 to 5 Bar Buy Rule TradeforLife™ acompleteguidetotradingforaliving In each of the scenarios above, the VCM Trader would be looking for a tradable pullback to the downside, once the low of a prior bar has been taken out. How much of a pullback would depend on the answers to several key questions such as: a) is the 3-5 bar rally occurring in an up trend, down trend or sideways trend; b) are any of the most powerful reversal signs present; c) how far away is the nearest area of resistance; d) was there a volume surge that took place toward the end of the rally; e) where is the rally in relation to the 20ma; and f) is the current rally potentially topping at or around one of the key reversal times? The answers to all these questions are covered in the many trading concepts taught in future chapters and throughout our live 5-day trading labs. 2) 3-5 Bar Rally – Stocks in strong down trends, as well as clearly defined sideways trends tend to back off after a 3 to 5 bar advance. This tendency often sets up nice trading opportunities. 3-Bar Rally 4-Bar Rally 5-Bar Rally Trading Notes Short Short Shortd20ma d20ma d20ma
  • 18.
  • 19. “VCM” The Three Major Charting Windows VCM Quote: “Wall Street never changes. The pockets change. The stocks change. But Wall Street never changes, because human nature never changes.” - Jessie Livermore
  • 20. Three Trading Time Frames TradeforLife™ acompleteguidetotradingforaliving 1) 15-minute Chart – This time frame will be used primarily for trend analysis and support and resistance reference points. While VCM Traders do takes trades on it from time, its use as a gauge of the stock’s power and its overbought-ness or oversold-ness is unrivaled. With that being said, trades on the 15-minute chart do tend to be the cleanest and the truest. In a sense, for the professional trader earning a living via the markets, this time frame would be considered the “core” one, for longer term trades. 2) 5-minute Chart – This time is the VCM Trader’s number one staple. If there was only one time frame with which to make a living, it would be this one. It perfectly sits between the 15-minute, which can be a bit to long, and the 2- minute, which can be a bit too noisy at times. The patterns we trade at VCM appear frequently enough in the 5-minute window to keep us active, yet infrequently enough to prevent us from over trading. This is “the” one, “the” time frame to master. 3) 2-minute Chart – This fast moving chart is a god-send when the market is not producing clear signals on the other two time frames. It’s also useful if and when the entry and/or exit points dictated by the 5-minute or 15-minute chart are too far away or unclear. Dropping down to the 2-minute chart for a finer entry or exit will usually provide the alternative. We call this taking an x-ray, or looking inside the stock.
  • 21. 15-minute Chart TradeforLife™ acompleteguidetotradingforaliving This time frame can really deliver some very healthy profits. The only caveat is that plays taken on it tend to last for 30-minutes to 1-hour. The more active traders will find it hard to be patient unless multiple plays are being managed simultaneously. This time frame is great for S&R analysis. 20ma 200ma Gap Reversal GBR on MPSMPS The 15-minute Chart should always have the s20ma and the and s200ma displayed. Trading Tip: VCM Traders look to go long, when the r20m is above the 200ma. They look to go short when the d20ma is below the 200ma. VCM Traders would look to go long in the are of the circles. You’ll understand each one soon enough.
  • 22. The 5-Minute Chart TradeforLife™ acompleteguidetotradingforaliving The 5-minute Chart is by far the most traded time for VCM Traders. It sits nicely between the 15- minute, which can be a bit slow, and the 2-minute, which can at times be a bit too noisy. Charts Courtesy of Realtick®. 20ma 200ma The 5-minute Chart should always have the s20ma and the and s200ma displayed. Trading Tip: VCM Traders look to go long, when the r20m is above the 200ma. They look to go short when the d20ma is below the 200ma. VCM Traders would look to go long at or near the r20ma. See Circles.
  • 23. The 2-Minute Chart TradeforLife™ acompleteguidetotradingforaliving The 2-minute chart is actively used to refine entry and exit points. It offers the deepest insight and smallest risk of the three time frames we actively trade. Stop outs can be frequent in this time frame, but scalper traders will always be well served here. 200ma 20ma The 2-minute Chart should always have the s20ma and the s200ma displayed. Trading Tip: VCM Traders look to go long, when the r20m is above the 200ma. They look to go short when the d20ma is below the 200ma. Circles = Shorting Opportunities Last two are Buying Opportunities
  • 24. “VCM” A Minor Charting Window VCM Quote: “Wall Street never changes. The pockets change. The stocks change. But Wall Street never changes, because human nature never changes.” - Jessie Livermore
  • 25. The 1-minute Chart TradeforLife™ acompleteguidetotradingforaliving Charts Courtesy of VCM Trader Pro™ Bid/ Buy Zone Offer/Sell Zone 20ma checks the price here Trading Tip: Once the 20ma halts the price decline, resistance is often broken. 20ma 200ma During flat markets, VCM Traders drop down to the 1-minute chart to play the bidding and offering game. They buy in a range below the 20ma and sell in a range above the 20ma. Break 200ma serves as resistance
  • 26. “VCM” Moving Average Power VCM Quote: “From my viewpoint, the investors are the big gamblers. They make a bet, stay with it, and if it goes wrong, they lose it all.” - Jessie Livermore
  • 27. The Powerful 20 MA TradeforLife™ acompleteguidetotradingforaliving 1) 20 Period Simple Moving Average (20ma) – The 20ma is so important to VCM Traders that no chart is ever studied or viewed without it. That’s because its power and reliability is unrivaled. No chart is a chart unless it is accompanied by this all-important technical indicator. We use it on every time frame or chart we look at. Here are the most important things to know about the 20ma and its proper use: a) Trade with the 20ma - Most of your trades should be in sync with the 20ma. If the 20ma is rising in a smooth fashion, your focus should almost always be long. Conversely, if the 20ma is declining in a smooth fashion, your focus should almost always be short. If the 20ma is flat (f20ma), your focus should be to scalp with the VCM “bid and offer” approach. b) Use as support & Resistance – If and when the 20ma is rising, it will serve as strong support. If the 20ma is declining, it will serve as strong overhead resistance. Look for buys at or near a r20ma. Look for sells/shorts at or near a d20ma. c) Use as a median line – When a stock is consolidating in a sideways pattern, the 20ma will be flat and usually positioned right in the middle of the sideways trend. If and when this is the case, bidding for stock in a range below the f20ma and offering/shorting stock in a range above the f20ma is the game to play. d) Use as a magnet – Stocks cannot remain extended too far above or below the 20ma. If and when stocks get too far, a violent snap back is eminent. This is when the VCM Trader can intelligently look to take advantage of a counter trend move . Trading Tip: Literally, a VCM Trader can use the 20ma to earn his entire livelihood in the market.
  • 28. The Power of the 20ma TradeforLife™ acompleteguidetotradingforaliving 20ma 40ma The picture of power is made up of the following: 1 – Rising Stock, making higher highs and lows; 2 – Smooth Rising 20ma 3 – Smooth Rising 40ma 4 – Even Space between 20ma & 40ma The 20ma begins to contain the price here. Stock breaks above the 20ma = Successful retests of the 20ma Charts Courtesy of Realtick®.
  • 29. The Power of the 20ma TradeforLife™ acompleteguidetotradingforaliving 20ma 40ma The Picture of Power 1-Rising Stock 2-Rising 20ma 3-Rising 40ma 4-Even Space 1 2 3 4 5 A VCM Trading Tactics A- Red Bar Ignored (RBI) 1- Green Bar Reversal (GBR) 2- Green Bar Reversal (GBR) 3- Bullish Pause Play (BPP) 4- Red Bar Ignored (RBI) 5- Green Bar Reversal (GBR) Trading Tip: Make sure all VCM Trading Tactics occur at strong support locations Charts Courtesy of Realtick®.
  • 30. Riding the 20ma Long TradeforLife™ acompleteguidetotradingforaliving 20ma 20ma begins to capture the price here. Stock is ignoring 20ma Holding on to all or part of your trade as long as the stock remains above the 20ma is a very effective way of maximizing your gains. What VCM Traders do is sell part on momentum rallies, and add on RBIs, GBRs and BOPs. See circles. Trading Tip: CA puts in top Note: VCM Traders usually don’t carry micro trades over night. Low Odds BS Charts Courtesy of Realtick®.
  • 31. Riding the 20ma Short TradeforLife™ acompleteguidetotradingforaliving SS at d20ma 20ma Breakdown Cover all Holding on to all or part of your trade as long as the stock remains below the 20ma is a very effective way to maximize your gains. However, once bases start to form toward the end of the day, its time to go home. What VCM Traders do is cover part on momentum drops, and add on GBIs, BDPs and RBRs. See lines. Trading Tip: Charts Courtesy of Realtick®.
  • 32. Riding the 20ma Short TradeforLife™ acompleteguidetotradingforaliving 20ma Short Here BDP off the 20ma Cover all here Stage 3 SS Holding on to all or part of your trade as long as the stock remains below the 20ma is a very effective way to maximize your gains. However, once larger than normal green bars begin to form, the party is over. What VCM Traders do is cover part on momentum drops, and add on GBIs, BDPs and RBRs. See lines. Trading Tip: Charts Courtesy of Realtick®.
  • 33. 5-Min Downtrend TradeforLife™ acompleteguidetotradingforaliving test Climactic Drop ends/slows down the game 1 2 3 4 20ma 40ma Circles show VCM Trade Opportunities Volume Surge Chart Courtesy of Realtick®
  • 34. 2-min Downtrend TradeforLife™ acompleteguidetotradingforaliving 20ma 200ma Come back sometime after the course to name these VCM trades Chart Courtesy of Realtick®
  • 35. The Mighty 200 MA TradeforLife™ acompleteguidetotradingforaliving 2) 200 Period Simple Moving Average (200ma) – The 200ma is so universally watched, in all time frames, that for all practical purposes, it has become a self-fulfilling prophesy. So rarely do stocks fail to obey (get halted by) the 200ma that we’ve given it the highest nick-name of all, God. It’s power, force, and reliability are so great, that it truly is god-like. We use the 200ma on all micro time frames (1-, 2-, 5-, and 15- minute charts). Here are a few things that you must keep in mind regarding this mighty moving average: a) Flatness is king: - While the 20ma is most powerful when it is rising and declining (trending), the 200ma is most powerful when it is flat (trend-less). b) Use as support – Whenever a stock declines to a flat 200ma, it will almost always experience some form of rebound. If the rare cases in which it does not rebound, the stock is almost certain to at least stop (halt its decent) for a while. c) Use as resistance – Whenever a stock rallies to a flat, overhead 200ma, it will almost always experience some form of retracement back down. If the rare cases in which it does not experience a reversal back down, the stock is almost certain to at least stop (halt its rally) for a while. d) Use as a magnet – If a stock and its 20ma get too far above or below the 200ma, a major reversal is usually at hand. This is when the VCM Trader can look to take advantage of a counter trend move. In other words, it’s this scenario that allows for intelligently going against the prevailing trend. Trading Tip: VCM Traders know that 200ma plays call for bigger positions
  • 36. The Flat Mighty 200ma TradeforLife™ acompleteguidetotradingforaliving 200ma GBI Buy RBI BO Note rising lows 1 2 3 4 5 6 1- 200ma serves as major support near a prior low and a prior high. 2- Climactic advance begins its decline with a GBI Set-up. 3- GBI at the 50% retracement level, signals another leg to the down side. 4- GBR w/ a BT right at major 200ma and price support 5- VCM Buy Set-up on major price and 200ma support 6- 123 BO really gets going on a RBI Set-up. Trading Notes Note volume surge on breakout Charts Courtesy of Realtick®.
  • 37. Buying Below the 20ma @ the 200ma The above chart offers the OLV Trader multiple buy opportunities: 1) Gap Plus (gap on the 200ma and major price support); 2) Buy Set-up at the r20ma; 3) RBI (Red Bar Ignored). TradeforLife™ acompleteguidetotradingforaliving 200ma200ma 20ma20ma Trading CriteriaTrading Criteria *Target is always the 20ma*Target is always the 20ma BuyBuy Sell AreaSell Area 1 – 20ma and 200ma are far apart 2 – Stock is far below the 20ma 3 – Stock is at or near the 200ma 4 – Buy set-up occurs near a Reversal Time Far above 20ma h 1 2 3 Charts Courtesy of Realtick®.
  • 38. The Flat Mighty 200MA A flat overhead 200-period MA often serves as major resistance. Note how the stock started ignoring its 20-period MA around mid-day. What do you notice now? TradeforLife™ acompleteguidetotradingforaliving 20ma 200ma What is the next likely direction in this stock? Why? 20ma is being ignored here Charts Courtesy of Realtick®.
  • 39. The Flat Mighty 200MA A flat overhead 200-period MA often serves as major resistance. Note how the stock started obeying the 20ma mid morning. What do you suspect is the next move? TradeforLife™ acompleteguidetotradingforaliving Charts Courtesy of VCM Trader Pro. 200ma 20ma Prior Day’s Close (PDC) BT after 3 Red Bars 3GBs
  • 40. “VCM” Trading Tactics Putting It all Together Trade For Life™ a complete guide to trading for a living Velez Capital Management, L.L.C.
  • 41. The Trading Strategy TradeforLife™ acompleteguidetotradingforaliving The Buy Methods: 1) Buy Green Bar Reversals (GBR) or Bottoming Tails (BTs) at or near the rising 20ma. – This is only to be done if the underlying stock is demonstrating the “picture of power” to the upside (rising stock; rising 20ma above 200ma). The GBR must occur at or near the rising 20ma, otherwise its occurrence is not all that important. Tip: Breakouts can also be played at or near the r20ma. 2) Buy Green Bar Reversals (GBR) at or near the flat 200ma. – This is only done if the stock has fallen back to the 200ma from a rather far distance. Gradual erosion back to the 200ma is not what we are looking for. A sudden drop or collapse back to a flat 200ma is what is preferred. The Sell/Short Methods: 1) Sell/Short Red Bar Reversals (RBR) and/or Topping Tails (TTs) at or near the declining 20ma. – This is only to be done if the underlying stock is demonstrating the “picture of power” to the downside (declining stock; declining 20ma below 200ma). The RBR must occur at or near the d20ma, otherwise its occurrence is not all that important. Tip: Breakdowns can also be played at or near the d20ma. 2) Sell/Short Red Bar Reversals (RBR) at or the flat 200ma. – This is only done if the stock has rallied back to the flat overhead 200ma from a rather far distance. A slow, gradual rise back to the 200ma is not what we are looking for. A sharp move back to a flat 200ma is what is preferred.
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  • 47. 2-minute Micro Trading Charts Courtesy of Sterling Software, Inc. TradeforLife™ acompleteguidetotradingforaliving IntraIntra--day Buy Criteriaday Buy Criteria 1. r20ma1. r20ma 2. r20ma > 200ma2. r20ma > 200ma Buy all PBSs & PBOsBuy all PBSs & PBOs Use stops at red lines orUse stops at red lines or use a trailing stop baseduse a trailing stop based on the r20maon the r20ma Trading Tip:Trading Tip: BuyBuy BuyBuy BuyBuy WideDistance*WideDistance* *Wide distance between 20ma & 200ma calls for caution!*Wide distance between 20ma & 200ma calls for caution! 200ma200ma 20ma20ma Stock ignores the 20ma 20ma captures the price
  • 48. VCM Trading Examples Oliver L. Velez, CEO www.velezcapitalmanagement.com
  • 49. Velez Capital Management, LLC a private equity trading group VCM One Trading Day 3/09/2007 One Trading Day 3/09/2007 1-Day Gross Profit of: $22,124.76 1-Day Gross Profit of: $22,124.76
  • 50. Velez Capital Management, LLC a private equity trading group VCM 16 Symbols Traded on 3/9/200716 Symbols Traded on 3/9/2007
  • 51. Velez Capital Management, LLC a private equity trading group VCM Two Trading DaysTwo Trading Days 2-Day Gross Profit of: $43,724 2-Day Gross Profit of: $43,724 3/9/07 & 3/12/073/9/07 & 3/12/07
  • 52. Velez Capital Management, LLC a private equity trading group Jan 03 – March 12, 2007Jan 03 – March 12, 2007 Gross Profit of: $412,196 Gross Profit of: $412,196
  • 53. NY Prop Group Monthly ProfitNY Prop Group Monthly Profit NY Prop GroupNY Prop Group NY Prop Group Profit = $107,628.49NY Prop Group Profit = $107,628.49 VelezCapital,LLC aprivateequitytradinggroup
  • 54. VelezCapital,LLC aprivateequitytradinggroup Starting Capital: $1,174.27Starting Capital: $1,174.27 VCM Trader’s Monthly ProfitVCM Trader’s Monthly Profit Profit of $43,865.05 made on $1,174.27Profit of $43,865.05 made on $1,174.27
  • 55. Starting Equity = $53,365.79Starting Equity = $53,365.79 Ending Equity = $90,702.74Ending Equity = $90,702.74 70% Return in 20 days70% Return in 20 days VelezCapital,LLC aprivateequitytradinggroup
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  • 62. Your Next Step to Becoming a VCM Trader Oliver L. Velez, CEO Velez Capital Management, L.L.C.
  • 63. How to trade morning gaps at the open for near instantaneous profits; How to make the first 30-minutes of the day your most profitable period; How to make the last 90-minutes of the day your second most profitable period; How to turn the mid-day doldrums into your most consistent period of the day; How to determine which gaps to fade (trade against) and which ones to run with; How to make the biggest profits from stocks that are declining; How to make your profits and your consistency soar in flat markets; How to trade against the trend, professionally How to profit from the fact that 72% of all breakouts fail; How to determine which breakouts are likely fail versus those that are likely to explode; How to profit from the fact that the second move in a stock is always its biggest; How Market Makers and NYSE Specialists profit from retail traders each day; How to turn 65% of your losing trades into winners with one simple strategy; How and when to send the right orders for the fastest fills; And much, much more You will also learn: How to become eligible to trade Oliver Velez’s money, while you learn his trading methods; How Oliver will absorb all your trading losses while you learn his trading method; Why professional traders will always have an edge on retail traders; How to trade at institutional rates as low as $0.05 (five cents) per every 100 shares. How you can join Oliver’s professional trading team by becoming employed by Velez Capital Management, LLC, one of the country’s fastest growing private equity trading firms. “Trade for Life™ a complete guide to trading for a livingTradeforLife™ acompleteguidetotradingforaliving