What is the Logic behind DreamTai ?

We use 4 factors to filter a trade so that it works in our favor.

1. High volume in direction of Trend
( as shown by the Power Ranking)
If you have 100 or 200 bullish stocks, use power ranking to find which has more power (buying volume) than others and use this criteria to select stocks for investing.

We use the volume in the Power Rankings. No one can argue with volume. If an investor feels like shorting a stock or some stock analyst is downgrading a stock but at the same time,
some hedge fund is secretly buying MILLIONS of stock, the volume will tell the truth and the stock will increase in Power Ranking.

2. Existing Stock Trend

If the price bar is green in color, it is bullish trend. If the price bar is red in color, the trend is bearish

3. Momentum
This is also shown by the color of the price bar. If the bar is green, the momentum is bullish, if red, the momentum is bearish

4. Money Management and Risk control.
DreamTai automatically calculates the amount to invest so that your maximum risk is 2 percent of your equity

Thus, we have four factors working in our favour.
1. High volume
2. Trend
3. Momentum
4. Money Management and Risk control.

This places the odds squarely in our favour. Of course, there will be some losers along the way and that is part of the game because we have risk management included in our strategy.

How do I use the signals of DreamTai ?

DreamTai is designed so that it is really easy to read the buy sell signals.

If you see a Green arrow, it means that the stock has turned from bearish to bullish. It is going to go up. It is a Buy signal.

If you see a Red arrow, it means that the stock has turned from bullish to bearish signal. It is a Sell signal.

If the price bar color is green then it means the price is going up and you can buy
If the price bar color is red then it means that the price is going down and you should sell

If you see in the charts, sometimes you will note the huge spikes in stock charts, but DreamTai has automatic Risk Management. As the stock becomes
more volatile, it will automatically decrease the trade size and protect you from huge losses.

How many shares do I buy/sell ?

DreamTai tells you exactly how many shares to buy and also tells you the stop loss price at which you MUST place the stoploss order. So, if the market goes against you, you will get out of the trade with a minor loss.

Preservation of your capital is the most important part. Earning profit$ comes next.

(DreamTai assumes that you have $10,000.00 to invest. If you have some other amount, then buy or sell proportional quantities. Example: If you have $ 20,000.00 to invest in the stockmarkets, and Dreamtai tells you to buy 25 shares to a stock XYZ, then as you are having two times $10000, you should buy =2x 25 = 50 shares of stock XYZ.)

Do I have to move my initial stop loss as the stock advances ?

Right click on the chart and you will be able to view the daily stop loss levels. You can adjust the stop loss levels to capture profits as the stock moves.

How does DreamTai work ?

Success in the stockmarkets depends on two things: correct timing for entry /exit and risk management. What DreamTai does is to identify when the stocks are trending up or down and identify the entry point for buying or shorting a stock. It also calculates how much money you can risk on a particular trade and the stop loss price at which you should exit if the trade goes against you. If a trade goes against you, the maximum loss you can have is two percent of your total equity while if a trade is going your way you can have HUGE profits.

DreamTai uses a moving average of price to get the main price trend of the stock.
But the problem with using only the moving average is that you can not tell when the momentum of the stock is turning down, that is, the buying has slowed down and the selling has begun. For example, a stock may move up for the day, but intraday, two million shares were sold during the uptrend but 20 million shares were sold during the downtrend. This selling pressure can not be captured simply by price moving average. So, DreamTai uses the volume to find the momentum of the stock.

Also, if you have ten stocks in your portfolio, you need to know which stocks are strong and which stocks are weak.
DreamTai Power Ranking feature does an inter stock comparision so you can filter out and remove the losers from your portfolio and decide which stocks to buy.

One of the most useful feature of DreamTai is the money management feature.
DreamTai helps you to control your risk by specifying exactly how many shares to buy/sell. Novice traders tend to focus on the trade outcome and therefore do not think about the risk.
In contrast, professional traders focus on the risk and take the trade based on their proven trading system.

Refer to the following article in 2004 issue of Technical analysis of Stocks and Commodities magazine to read about risk management

http://www.dreamtai.com/mainpages/moneymgt/mmgt.pdf

So, DreamTai uses a combination of methods to maximize your profits and minimise your risks.

Does this program work with Canadian/US/ or some other stock market in my country ?

DreamTai will work for ANY stock of ANY country with the condition that the stock ticker symbol exists in Yahoo.com, because Dreamtai refers Yahoo for price data downloads.

For example, if you want to look at a Canadian stock, all you have to do is to enter the Stock Ticker symbol for the Canadian Stock as shown in Yahoo Finance. (http://ca.finance.yahoo.com/)

For example, for Canadian stock Suncor Energy Inc. the symbol as shown in Yahoo Finance is SU.TO and the symbol for Barrick Gold Inc. is ABX.TO

Do you publish the track record of DreamTai ?

You must have seen fake and mis-leading advertisements like [Become a MILLIONAIRE in ten months] or [How I earned 600 Percent return with XYZ software].

We prefer not to publish such misleading and fake records. We think that each investment decision is unique with reference to the stock and the time period within which the investor invests.

For example, if a person had purchased ANY Dot Com stocks in the period 1998 to 2000, he would have earned a HUGE amount of money on his original investment. That does not mean that he is an Investment Guru or Genius. On the same scale, he would have lost a HUGE amount of money if he invested in Dot Com stocks after 2000.

So, success is the matter of right time and the right stock ... hard work and a little bit of luck..

BUT, we can explain to you how DreamTai works and how you can use it to help you make profitable investment decisions.

Dreamtai follows the main trend of the stock and gives the Buy signal for any pull backs in the trend if the stock is in an upmove. Similarly, it gives a Sell short signal for any stock which is trending downwards and has just pulled up temporarily.

Also, DreamTai helps you in controlling your risks by automatically calculating how many stocks to buy/sell in your portfolio.

The Power Ranking feature of DreamTai sorts the stocks of your portfolio based om bullishness strength.

The success failure rate using DreamTai depends on the market conditions, stock selection, trade discipline and money management.

Let us describe the worse kind of scenario in which DreamTai will produce losses. The worst senario is when the market is in doldrums ..that is not going up or down and is just moving sideways. In this scenario, you will
get stopped out many times.

See the Dow Jones Industrial Average in 2004 -2005.

The solution is to select those stocks which are trending up or down.

How do you tell if a stock is trending up or down ? If the stock has power ranking greater than 3 and is sloping upwards, the stock is trending up. If the stock is sloping downwards, the stock is trending down.
If the stock is moving horizontally, there will be whip saw movement.
So, we have to stay away from that stock and select a stock which is trending.

Refer to Investor Business Daily Monday editon for top 100 stocks or
you can scan for trending stocks at following website ( no charges).

http://stockcharts.com/def/servlet/SC.scan

http://www2.barchart.com/sigtop.asp

Please try to have a look at DreamTai charts for different stocks and see how it had performed in the past.
Try to create a portfolio of various stocks and look at their Power Rankings. That will give you an indication of how much bullish strength is left in the stock. Generally, stocks with Power Ranking of 5 and above are bullish and those of -5 and below are bearish.
Those stocks with Power Ranking between -5 and 5 are usually moving sideways.

Here is another risk free method of testing out your trading ideas.

Go to Marketocracy.

http://www.marketocracy.com/

Here, you can set up your own simulated portfolios, experiment with different trading strategies and check out the performance of your strategies.

It is an excellent idea to paper trade for a month using DreamTai so that you do not risk your money.

Please note that as per SEC rules, we can not claim that DreamTai can generate particular rate of return.(real or simulated ). We declare that we are not professional money managers or hedge fund managers.
We do not recommend, upgrade or downgrade stocks.

The best thing to do is to try out DreamTai and believe your own eyes. If you feel that DreamTai does not meet your needs, just inform us within 30 days and we will refund you back the full price. Majority of our clients have been satisfied with DreamTai. We had returns mostly due to technical reasons and in a few cases, DreamTai did not meet their trading styles.

In the beginning, just paper trade to see DreamTai's performance without risking your own money.

We hope that DreamTai will help you to make profitable investments in stocks.

Here is an approach you can try. Have a portfolio of stocks with High
Power Rankings. (for a long fund)
Every week or every fifteen days, weed out the stocks with lower power
rankings (those below five) and substitute them with stocks with higher
power ranking.

So, at any time you will be having the best of the breed of stocks.

Also, if at any time, DreamTai gives a sell signal for any stock, sell
the
stock.

Please try paper trading with this approach at Marketocracy web site.
Actually, this site is set up so that it resembles a hedge fund. There
are
long only funds and short only funds.

Some of our members have used the power rankings just like they use the
power rankings for Sports Players. If a player slides in power ranking,
they place bets for a player with stronger Power Ranking.

What is stoploss order and how do I place it ?

A stop loss order is an order you place with your broker to close your positions automatically if you lose more than a specified amount of money in that trade. In this way, if you place a trade you can be confident that your trade will be closed if you lose more than a specified amount. For example, if you buy IBM at $110.00 and then place a Stop Loss order at $107.00, if the stock price goes below $107.00 your shares will be sold. So, the maximum loss you will face is = $ 3.00 ( $110.00 -$107.00). Contact your broker for details on how to place stop loss orders.

Do I need a separate Stock Quotes data provider to download the quotes ?

No, you do not have to have a separate data provider. DreamTai downloads the end of the day quotes from the internet. However, if you want you use data from your own data provider, you can export the prices in ASCII format and DreamTai will use it.

What is the purpose of Power Ranking Tab in the DreamTai software ?

The stock power ranking shows the strength of the stock move. The higher the number, the more bullish the stock.
Suppose, there were two stocks that went up by two dollars.
For the first stock, the volume was one million, but for the second stock, the volume was thirty million. Obviously, there was a greater power for the second stock.
The Stock Power ranking measures the power. If you are considering to buy many stocks, you can input them in DreamTai and buy the stocks with the highest power ranking.
Conversely, if you are shorting, you should select the most negative power ranking stock.

My computer network is behind a corporate firewall in my office. Can I use DreamTai?

Yes, you can use DreamTai even if you are behind the firewall. You have to make a simple setting.

You need to contact your Local Area Network System Administrator and get the Proxy Host Server Name and Proxy Server Port Number.

Then run DreamTai. Select Configure => Firewall from the menu.

Check the "Use a Proxy Server" checkbox. Enter the web address of your proxy server and the port number in the text boxes provided and click the "Save Settings" button.

Then close and restart DreamTai.