If you consider yourself a mid-term trader and wish to place no more than 5 -10 trades per month, we recommend the following method for trading indexes and their derivatives. The method requires you to consult both the Market Stage and Market Status sections of our daily Market Outlook:

• As a mid-term trader, you are likely most interested in time spans of roughly a week or two. If so, we encourage you to keep abreast of the market action by following both the Market Stage as well as the Market Status sections of our daily Market Outlook. These two sections will keep you up-to-date on what is happening on a mid-term timeframe, as well as inform you about the market’s daily fluctuations;
   

• Even for mid-term traders, it is still vital to be mindful of the general (long-term) trend, as you do not want to trade against it (assuming you plan to hold a position for more than a day). When the market is trading in a resistance or a support corridor, our recommendation is to close your positions and stay in cash. This will help you preserve your capital during periods of increased market volatility;
   

• We also suggest that before you place a trade, you should always compare notes: weigh what we stated in our Market Status section against your own assessment of the situation (i.e., the results of your own analysis).
   

Recommendations:

• Consult our daily Market Outlook in order to determine the current long-term trend, and to discover whether we foresee any probable mid-term corrections;
   

• If we suggest in our Market Status section that the market is trading in a resistance corridor (or in a support corridor, as the case may be), yet you feel it could go higher (or lower, as the case may be), you can always place a trailing stop-loss order to protect your profits;
   

• In order to grow familiar with volume-based technical analysis, we suggest you browse through our archive of daily Market Outlook.

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