JCSM Shareware Collection 1996 September

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MOMENTUM TRADER(TM) JUMP START INSTRUCTIONS =============================================== WHAT IS MOMENTUM TRADING? Momentum Trading is the practice of making buy and sell decisions based on short term fluctuations of the market (following the market momentum). It isn't talked about a lot, but many Wall Street insiders and brokers use this technique (but not this powerful software) to enhance their own positions. Up to now, a means of screening large quantities of stock market data to identify opportune stocks for momentum trading did not exist for the small investor. Momemtum Trader(TM) brings this power to your own portfolio using the simplest of sources -- a Basic CompuServe(R) account (about $10 a month). WHAT CAN MOMENTUM TRADER(TM) DO FOR YOU? Use Momentum Trader to download hundreds of stocks once each day from your CompuServe(R) basic account for your history files. A portfolio of 250 stocks (mutual funds and market indices can be tracked, too) takes about 15 minutes a day to download with a fast computer and a 9600 baud modem. The process is automatic. Momentum Trader will hang up the phone and beep you when it's done. Then the fun begins. Historical plots of the last hundred days are maintained for each of the stocks you have placed in your list, with technical data to assist you in making investment decisions. Powerful screening algorithms allow you to winnow down your list to those stocks that meet your trading criteria on a particular day. For example, you can screen your hundreds of stocks for: - those that had a high minus low that day exceeding x.xx dollars - those that had moving average crossovers of 2-3 days, or 3-5 days, up or down (indicates stocks whose market direction is changing) - those that have gone up or down x percent in y days (want to find a stock that climbed ten percent in two days - not uncommon - see example below WHY IS THIS IMPORTANT? When a powerful stock tracking program like Momentum Trader is combined with the services of discount brokers, it becomes possible to identify, buy and sell stocks which fluctuate widely and rapidly for just a few cents a share. Momentum Trader will easily identify several stocks each day whose movement is measured in multiple dollars IN A SINGLE DAY. The following plots show the kind of data you can retrieve from your Momemtum Trader database in minutes. HIGH MINUS LOW EXAMPLE OF SCREEN FOR HIGH MINUS LOW EXCEEDING TWO (DOLLARS IN ONE DAY) (Actual Data From Momentum Trader(TM)) ======================================================================= LAM RESEARCH CORP COM Printed: 03-07-1995 06:31:03 35 37 39 41 43 45 47 _______________________________________________________________________ 950221 *.........+....... L-C------H +.........+.........+.........+... 950222 *.........+........ L------C--H ........+.........+.........+... 950223 *.........+.........+.... L-C---H ......+.........+.........+... 950224 *.........+......... L--C--H .+.........+.........+.........+... 950227 *.........+.. LC--------H ....+.........+.........+.........+... 950228 *.........+.. L----------C ...+.........+.........+.........+... 950301 *.........+..... C-------------H .......+.........+.........+... 950302 *.........+..... L--C---H ....+.........+.........+.........+... 950303 *.........+..... L-------C-H .+.........+.........+.........+... 950306 *.........+.........+ L-------------CH .+.........+.........+... ======================================================================= You will find several stocks each day whose high minus low in a single day exceeds the cost of buying and selling by a large factor, sometimes as much as a factor of ten. MOVING AVERAGE CROSSOVERS Moving average crossovers indicate a stock that is changing direction. A 2-3 day moving average upturn, for example, signifies a stock whose two day moving average exceeds its three day moving average, AND THE SAME WAS NOT TRUE YESTERDAY. A 3-5 day moving average crossover indicates a turnaround of at least three days duration. EXAMPLE OF SCREEN FOR MOVING AVERAGE CROSSOVER (2-3 DAY, UP) (Actual Data From Momentum Trader(TM)) ======================================================================= COLLAGEN CORP COM Printed: 03-07-1995 06:26:07 23 24 25 26 27 28 29 _______________________________________________________________________ 950221 *.........+.........+... L-C----H ......+.........+.........+... 950222 *.........+.........+... L----------------C ......+.........+... 950223 *.........+.........+.........+..... L-------C----H ........+... 950224 *.........+.........+.........+........ L---C--H .+.........+... 950227 *.........+.........+.........+........ L-C----H .+.........+... 950228 *.........+.........+.........+.........+ C----H .+.........+... 950301 *.........+.........+.........+..... C---------H .+.........+... 950302 *.........+.........+ L----C---------H .+.........+.........+... 950303 *.........+.........+ L--------------C .+.........+.........+... 950306 *.........+.........+........ L---------------CH .+.........+... EXAMPLE OF SCREEN FOR MOVING AVERAGE CROSSOVER (3-5 DAY, UP) (Actual Data From Momentum Trader(TM)) ======================================================================= CALIFORNIA MICROWAVE INC Printed: 03-07-1995 06:24:52 27 28 29 30 31 32 33 _______________________________________________________________________ 950221 *.........+.........+.........+.........+.........+ L----C----H 950222 *.........+.........+.........+.........+..... L--C------H .+... 950223 *.........+.........+.........+.........+..... C---------H .+... 950224 *.........+.........+.........+.........+ C------------H ...+... 950227 *.........+.........+..... L------C-------H ......+.........+... 950228 *.........+........ L-C--------------H .+.........+.........+... 950301 *........ L----C---------H ...+.........+.........+.........+... 950302 *..... L------------C ........+.........+.........+.........+... 950303 *.........+.........+ L-----------------C----H ...+.........+... 950306 *.........+.........+.........+ L--C----H ........+.........+... EXAMPLE OF SCREEN FOR MOVING AVERAGE CROSSOVER (2-3 DAY, DOWN) (Actual Data From Momentum Trader(TM)) ======================================================================= CYPRESS SEMICONDUCTOR COR Printed: 03-07-1995 06:30:01 24 25 26 27 28 29 30 _______________________________________________________________________ 950221 *.........+.........+ L----C-H .........+.........+.........+... 950222 *.........+.........+....... L-C .......+.........+.........+... 950223 *.........+.........+......... L---C---H .........+.........+... 950224 *.........+.........+........ C-----H ..+.........+.........+... 950227 *.........+.........+.. L--C----H ......+.........+.........+... 950228 *.........+.........+..... L----------------C--H .+.........+... 950301 *.........+.........+.........+........ L---------------CH .+... 950302 *.........+.........+.........+.........+ L-------C--------H ... 950303 *.........+.........+.........+.........+... L----C-H ......+... 950306 *.........+.........+.........+.........+ L------CH ........+... EXAMPLE OF SCREEN FOR MOVING AVERAGE CROSSOVER (3-5 DAY, DOWN) (Actual Data From Momentum Trader(TM)) ======================================================================= OCTEL COMMUNICATIONS CORP Printed: 03-07-1995 06:29:06 19 20 21 22 23 24 25 _______________________________________________________________________ 950221 *.........+.........+........ L----C---H .........+.........+... 950222 *.........+.........+.........+... LC---H ........+.........+... 950223 *.........+.........+.........+... L-C--H ........+.........+... 950224 *.........+.........+.........+... C----H ........+.........+... 950227 *.........+.........+..... L------C--H .+.........+.........+... 950228 *.........+.........+.........+ L---------C ......+.........+... 950301 *.........+.........+.........+.........+ L--C------H ......+... 950302 *.........+.........+.........+ L-------C----H ...+.........+... 950303 *.........+.........+........ L----C------H ......+.........+... 950306 *.........+... L---------C----H ........+.........+.........+... PERCENT UP OR DOWN IN X DAYS Another useful screening is for a stock whose value moves up or down a large percentage in a short number of days. These may indicate stocks on an upward run; conversely, those which have dropped rapidly in price may soon present a buying opportunity when the moving average crossovers indicate a turnaround. EXAMPLE OF SCREEN FOR TEN PERCENT UP IN TWO DAYS (Actual Data From Momentum Trader(TM)) ======================================================================= CHIPS & TECHNOLOGIES INC Printed: 03-07-1995 09:51:46 3 4 5 6 7 8 9 _______________________________________________________________________ 950217 *.........+.........+.........+.... L--C .........+.........+... 950221 *.........+.........+.........+... LC--H .........+.........+... 950222 *.........+.........+.........+... C-H .+.........+.........+... 950223 *.........+.........+.........+.. L--C .+.........+.........+... 950224 *.........+.........+.........+... LCH .+.........+.........+... 950227 *.........+.........+.........+ L-C-H ..+.........+.........+... 950228 *.........+.........+.........+ C--H ...+.........+.........+... 950301 *.........+.........+.........+ L-CH ...+.........+.........+... 950302 *.........+.........+.........+ L-CH ...+.........+.........+... 950303 *.........+.........+.........+.. L-----C ........+.........+... 950306 *.........+.........+.........+.... L--------CH ..+.........+... EXAMPLE OF SCREEN FOR TEN PERCENT DOWN IN TWO DAYS (Actual Data From Momentum Trader(TM)) ======================================================================= SYQUEST TECHNOLOGY INC CO Printed: 03-07-1995 09:51:07 10 11 12 13 14 15 16 _______________________________________________________________________ 950221 *.........+.........+.........+.........+.........+.. L--C--H .. 950222 *.........+.........+.........+.........+.........+.. L-C---H .. 950223 *.........+.........+.........+.........+.........+.. L-CH .+... 950224 *.........+.........+.........+.........+.........+.. C-H ..+... 950227 *.........+.........+.........+.........+........ LC--H ....+... 950228 *.........+.........+.........+.........+.. L--C----H ......+... 950301 *.........+.........+.........+.........+... LC--H .........+... 950302 *.........+.........+.........+.........+... C---H .........+... 950303 *.........+.........+......... LC------------H ...+.........+... 950306 *.........+.. LC--------------H ........+.........+.........+... INSTALLING MOMENTUM TRADER Momentum Trader takes the tedium out of stock tracking. Here are the things you will need to do in order to get started. - Put the installation disk in your floppy diskette drive. Switch to that drive. - Type INSTALL <Enter>. The MT files will be installed on your hard disk on the drive you specify. - Put away your installation diskette. Switch to the subdirectory containing MT. GETTING STARTED - Type MTRADER <Enter>. Soon you will be at the Momentum Trader Main Menu screen. Momentum Trader will track stocks, mutual funds, and market indices (such as the Dow Jones 30), using data obtained with a basic CompuServe(R) membership account. Each day after you download the daily activity of your stock list (up to hundreds of stocks), The data from each stock will automatically be stored in a history file which can be plotted, printed, and searched with powerful algorithms to flag stocks which have unusually high price activity, turnarounds, or sustained runs, up or down. USING THE KEYBOARD AND MOUSE Momentum Trader is easiest to operate with a mouse. If you wish to use the keyboard, however, there are two ways to do so. - Hold down the <Alt> key, and press the highlighted letter of the control you wish to operate. - Use the <Tab> key until the control you want is highlighted. Then press <Enter>. ENTERING YOUR COMPUSERVE ACCOUNT DATA Momentum Trader handles the details of retrieving your data automatically. You will need to tell the program your CompuServe account number, your password,the local CompuServe phone number, your Com Port, and the baud speed of your modem. - Select "Options" from the main menu. Select the sub menu "Communications". - Enter the data mentioned in the paragraph above. (If your first call to CompuServe is unsuccessful, double check all of this data. - Press "OK" to save the data and return to the main menu. RETRIEVING STOCK DATA It is impractical to distribute Momentum Trader with historical data files, since you will wish them to be current each trading day. However, to get you started, we have pre-installed a list of more than two hundred active stocks into your tracking list. Although you can add to or delete stocks from this list at any time, you may wish to use this list for a few days to get the hang of it. So let's move on for the moment to downloading data. DOWNLOADING TODAY'S DATA You can't do anything with Momentum Trader (except look at the pretty menus) until you have downloaded at least one day"s data. The history files are intended to be updated after the close of each trading day. There are some other tricks we'll get to later, but for now let's get some data! - Select the leftmost menu choice ("Comm Link"). Then choose "Download Today's Data". The Communications parameters are displayed. Press OK to initiate an automatic download. Depending on the number of stocks you are tracking, the download will take several minutes. You will be "beeped" when it is finished. You will be shown your downloaded data in tabular form, and encouraged to scan it before placing it in the permanent files. The data can be scrolled with the vertical scroll bar, the <PgUp> <PgDn> keys, and the arrow keys. In the rare event that the data contains "glitches", you can cancel and download again. >>>>>>>>>> A word of caution here. The allowable speed of a download is just as dependent on the speed of the computer as it is on the speed of the modem. For example, a 386 SX 20 connected to a 14,400 baud modem has to be set as low as 2,400 baud to reliably read all the downloaded data! The input buffer just fills up faster than the SX can handle it, and characters are missed. Missed characters can introduce errors into your data files. You shouldn't have any trouble with a 486 or Pentium(R). In any case, if you see offsets (the right edges of the columns don't line up) after your download, discard the download, set the Baud Rate lower in the Communications Parameters menu, then repeat the download. Because of this, the default Baud rate has been set at 2,400 baud. If you have a fast computer and modem, try higher settings. Use the highest setting which reliably works for you. <<<<<<<<<<< If the data appears OK in the tabular summary, - Press the <OK> button and load the data into the permanent files. A status screen will show your progress. REVIEWING YOUR DATA There are several powerful ways to review your downloaded data. The simplest is to retrieve the tabular data you have already seen. Do this with the menu choice "File - Review Today's Data" You have begun a plot of each stock, mutual fund, and index in your stock list. Eventually, for registered users, these files will grow to 100 trading days length and will be continually pruned at that length without your intervention. To see the beginning of your plot, choose "Plot a Stock", select your stock and press <OK>. Stock selection can be by mouse, <PgUp> <PgDn>, or arrow key. To shortcut the process, press the first letter of the stock symbol, and you will jump to that section of the list. STOCK PLOTS Momentum Trader will plot your stocks for you, either onscreen or in hardcopy. The onscreen plot is your first choice. After reviewing the onscreen plot, you may select"Print Hardcopy" to print a paper record, if you choose. SCREENING YOUR STOCKS The most powerful feature of Momentum Trader is its ability to screen all the stocks you have downloaded for criteria that you specify. Click on the main menu item "Screen Files". HIGH MINUS LOW If you use a discount broker, you can buy or sell stocks for a few cents a share. Momentum Trader will screen your stock list for stocks which vary in price DURING THE LAST DAY'S TRADING whose high minus low exceeded a criteria you set. The default value is two (dollars per day). Several stocks with that activity level will usually be identified each day. This feature is available after the first day's download! MOVING AVERAGE CROSSOVERS Momentum trader constantly keeps track of the 2, 3, 5, 10, 15, 40, and 90 day moving averages of all the stocks you track. Momentum traders are interested in the crossovers which occur between 2-3 days, and 3-5 days, because these can signal impending turnarounds (2-3 day) and more sustained turnaround (3-5 day). Momentum Trader will screen for both of these conditions, both up and down. Stocks are identified which meet these criteria, AND DID NOT DO SO YESTERDAY (a powerful algorithm which signifies a true turnaround). PERCENT UP/DOWN IN X DAYS Stocks with sustained runs in price, up or down, can be identified to the criteria you set. "WATCH" LIST You will have stocks of interest, either in your portfolio, or stocks you are considering for purchase. You can identify these as "Watch" stocks (see how in STOCK LIST MAINTENANCE). At any time during the trading day, you can click menu item "Comm Link", "Download Watch Prices" to download just these stocks for their most recent prices. These will be presented in tabular form (same as "File", "Review Watch File" at the end of the download. They will NOT be added to the history file (which operates on a single, once at day's end basis). You may find it helpful to include indices, such as the Dow Jones 30, in your Watch list. "IGNORE" LIST You will no doubt track some indices, such as the Dow Jones 30 Industrials. It would be confusing for these to keep popping up in your list of stocks screened for high minus low, or other criteria. By identifying them as "Ignore", they will not be selected during a screening. It is perfectly acceptable to mark an index both "Watch" and "Ignore". A "W" or "I" appear after the stock symbol name in the stock list to indicate your selection. STOCK LIST MAINTENANCE The menu item "File", "Edit Stock List" is the place to add and delete stocks from your list, to mark them as "Watch" or "Ignore". Bring up this menu selection. It's use is very straightforward. Add/Delete Stock Symbol Click on "Add a Symbol" to add a stock to your list. You will be prompted for the symbol. To delete, highlight the symbol in the list and click on "Delete a Symbol". You will be asked to confirm the deletion, then asked whether to also delete the history file. Add To Watch / Remove From Watch Highlight the stock symbol you wish to change. Then click the "Add to Watch" or "Remove From Watch" button. Ignore / Don't Ignore Highlight the symbol you wish to change (usually an index). Then click the "Ignore" or "Don't Ignore" button. OPTIONS The menu item "Options" contains several useful entries: General The general options window allows you to reset the screening criteria you wish to use in screening stocks (such as high minus low screening value). You can also reset them individually when conducting your screens. Communications The communications window allows you to reset the baud rate of your system, the Com Port, the CompuServe phone number, your User ID, and Password. These can also be reset when initiating a download. Export Data To Windows On WallStreet(TM) You can export your Momentum Trader stock data to WOW. There are many elegant stock plotting options available in WOW, and you can use Momentum Trader as a data source, saving significantly on download fees. Data is exported in ".CSV" (comma separated value) format, which WOW can read. The MTrader export is very fast, and therefore all of your stocks are exported when you choose 'Export Data to Windows on WallStreet' from the file menu. The import into WOW is considerably slower, so you may wish to import only selected files, or import all of them while you attend to other tasks. Instructions for importing your ".CSV" data are found in the WOW Users Guide, and are briefly shown on your screen when you select 'Export Data'. Remove One Day In case you inadvertently store some incorrect data, you can remove one day using the 'Remove One Day' command in the File menu. This removes that day from each of your stock files. Calendar A multi-year calendar is provided for your convenience. You will also see this calendar after a download of Today's Data. Should you download after midnight, or on a Saturday or Sunday, just click on the day the data applies to, and the data will be properly recorded. Print Registration Form Yes, we hope very much that you find Momentum Trader(TM) exciting and rewarding, and will want to register! BEAT THE BIG BOYS This program brings power and speed into the analytical tools available for the small investor. It just may change the way the small investor approaches the market. We, the developers of this program thank you for giving us a chance to prove it to you. --- CompuServe(R) is a registered trademark of the CompuServe Corporation. Pentium(R) is a registered trademark of IBM Corporation. Momentum Software P. O. Box 60519 Sunnyvale, CA 94088 NOTICE Momentum Software is not affiliated with CompuServe(R), and has no control over the CompuServe menu structure nor operating protocol. We have made every effort to make this program flawless in its operation. In the unlikely event that CompuServe should ever change its menu structure or protocol in such a way as to make this program inoperative, Momentum Software will attempt to make available a functional replacement to registered users as soon as possible. Momentum Software, however, makes no guarantees regarding future useability of this program on the CompuServe network. REQUIREMENTS Minimum: IBM(R) Compatible Computer, 386SX or higher Hayes Compatible Modem, 2400 baud or higher Basic Plan Membership in CompuServe(R) Desirable: Faster Computer Faster Modem