Bill Hider – Short Term Momentum Trader

1. Bill Hider – Short Term Momentum Trader • Basic Strategy: • Evening - Identify potential trades/entry points with the Daily Chart close • Next day - Use the Intraday 5-Minute Chart to find precision entries/exits based on the Stock Price candlestick-patterns • Trade the Option, not the stock • Stay in the trade until either of the following is met: 1. The first major retracement begins, based on the 5-min price candlestick-pattern of the stock being traded • A price target is reached • Exit the trade the same-day (day-trade)

2. Bill Hider – Short Term Momentum Trader • Basic Trade Entry Rules (Watch the Stock, Trade the Option) • On Pullbacks to moving averages – on the bounce • On Breakout from technical continuation patterns • Trade in the direction of the S&P (Watching the SPX) • Do not trade in the first 15 – 20 minutes after the mkt opens, or longer, until SPX has identified a tradable direction. • Do not trade on “slow” trading days, or SPX Doji days Note: There are well over 150 trading rules plus several dozen technical pattern rules, and a set of Option selection rules

3. Bill Hider – Short Term Momentum Trader • What I do • Select 3 to 7 trading candidates each evening - Daily chart close • I select from my personal trading list of 11 stocks: AAPL AZO BIDU CME FSLR GOOG GS ICE MA OIH POT • And augment with 1 - 3 other stocks that have “moved” into entry patterns that day. For Example, my list for today (5/20/09) was: AMZN AZO GS MA PCLN RIMM I actually traded AMZN & AZO today. These trades follow:

4. Bill Hider – Short Term Momentum Trader Today’s Selections from Daily Chart: My Game Plan first considers the SPX (daily). Here’s what SPX looked like last night, 5/19/09  You can also see my pick-list in the left-hand column.

5. Bill Hider – Short Term Momentum Trader AMZN’s Daily Chart (5/19/09):

6. Bill Hider – Short Term Momentum Trader AZO’s Daily Chart (5/19/09):

7. Bill Hider – Short Term Momentum Trader GS’s Daily Chart (5/19/09):

8. Bill Hider – Short Term Momentum Trader MA’s Daily Chart (5/19/09):

9. Bill Hider – Short Term Momentum Trader PCLN’s Daily Chart (5/19/09):

10. Bill Hider – Short Term Momentum Trader RIMM’s Daily Chart (5/19/09):

11. Bill Hider – Short Term Momentum Trader AMZN Entry @ 79.44, SPX Bullish, Entry time = 9:52AM, 5/20/2009 ZQNFO, Jun 75C, 6.20 x 6.30, D = .70, BTO Fill = 6.30, 10 contracts

12. Bill Hider – Short Term Momentum Trader AZO Entry @ 163.10, SPX Bullish, Entry time = 9:53AM, 5/20/2009 AZOFK, Jun 155C, 11.70 x 12, D = .69, BTO Fill = 11.93, 8 contracts

13. Bill Hider – Short Term Momentum Trader AMZN Exit @ 80.34, SPX Doji, 10:08AM, Time in trade = 16 min ZQNFO STC Fill = 6.9 (tsl .1 @ 7.00). Profit = $600, 9.5%, $570 Net

14. Bill Hider – Short Term Momentum Trader AZO Exits @ 163.09/163.31, SPX retraced, 10:11AM, Tr time = 18 min AZOFK STC Fill = 12.02 & 11.82, Loss = -$15, (-$45) = $-60.00 Net

15. Bill Hider – Short Term Momentum Trader FOMC 2:15 PM decision day Special Rules: Stay in any trades you are already in from overnight the previous night Don’t enter any new trades before the FOMC announcement @ 2:15 PM Then, wait until SPX 5-min chart gives you the “all clear” to do any trading Example: AZO 3-18-09

16. Bill Hider – Short Term Momentum Trader 3-18-09 AZO Entry after FOMC. SPX broke-out, retraced & broke out to 1st retracement candle. Note: took 30 minutes for SPX to settle down. AZO @ 162.93, BTO AZOCK, Mar 150 C @ 8.28, 10 ctx* AZO @ 163.69, STC AZOCK, Mar 150 C @ 8.815* Profit = $535 – $30 $505 NET *All trade slips from this PPT, available on request.

17. Bill Hider – Short Term Momentum Trader My 4 Most Important Rules Are Posted In 3 Places Above my Trading Desk (really): Any number of trades/day producing a day’s profit of $100, $200, $300, or $400, yields the annual profit listed if averaged over the approx 250 trading days/year. No profit is too small!

18. Bill Hider – Short Term Momentum Trader ANY Questions? Comments? Bill Hider Rockville, MD 301-642-0903 n3rr@erols.com