Club Rules

Welcome to the TraderDocRx Club in Telechart. Telechart is an extremely powerful charting system for teaching (as well as trading). The ability to share charts and make live notations and commentary makes it a perfect tool to learn. The TraderDocRx club is moderated by Candy Schaap and is based on the trading methodologies of her husband, Dr. Charles Schaap. Dr. Schaap is the author of Invest with Success—Big Profits for Small Investors and ADXcellence—Power Trend Strategies.

The club is a free teaching club for serious traders. It is not for gossip, bragging, or sales pitches. Expect honest, straightforward answers to questions. It may not be what you want to hear, but it is probably what you need to hear. As one club member once stated, “Candy can be tough on you, but not as tough as the market will be if you don’t learn how to trade and manage risk.”

The methods taught are primarily trend-based, and the rules apply to all timeframes and all trading vehicles. Major emphasis is placed on reading price action and trend. You will learn the proper use of structural price pivots and trendlines. Dr. Schaap’s philosophy is that to trade successfully, you need the proper technical knowledge, a sound trading plan, and the mindset to implement the plan.

If you can’t read price, indicators won’t help you. You should understand how to read price bars alone before adding indicators.Having said that, two main indicators are discussed in club: ADX (13,8) in conjunction with the 20 SMA and RSI (20) in conjunction with the 50 EMA overlaid on price. ADX and RSI indicators are not used together, and one does not confirm the other. ADX applies to the ADXcellence methodology and RSI applies to the 5050 Strategy methodology. The indicators settings are never changed. It is fine if you use other indicators, but they will not discussed in club.

The Schaaps have to free educational websites (5050Strategy.com and ADXcellence.com) which you may find helpful and which support the methods taught in club. You can also sign up for their free bi-weekly newsletter which contains stock ideas (Great Xpectations list), market commentary, and technical observations.

There are a few club rules which should be observed:

1.       The club discourages any type of hype, especially the type found on popular financial TV shows or popular TV hosts. Hype is a distraction and is never helpful for those learning to trade.

2.       Dollar amounts or the number of shares traded are not disclosed. These are personal and add nothing to the discussion of trading or risk management. The same technical rules apply whether you are trading with 10 shares or 10,000 shares.

3.       During teaching sessions, do not interrupt with off-topic comments. This disrupts the flow of the discussion and is disrespectful to those who donate their free time to provide valuable information.

4.       No politics. The market doesn’t care if you are a conservative or liberal; it picks both pockets equally well.

5.       Set your ego aside. No one cares how great a trader you are in your own mind. There is no need to prove yourself by telling us how long you’ve been a trader. We are all students in the club.

6.       Private messaging is great for personal comments, but if you have a great question or comment, everyone benefits by sharing it in the club chat. Most of us have the same questions in our minds which need answers.

7.       We do not make intraday “calls,” but notable technical events are often pointed out, especially in regards to the stocks in the Great Xpectations list (which most of us follow).

8.       If you see a technical setup, share it with the club, so all can benefit from seeing the trade play out (and perhaps benefit financially, too). It’s not much help to point out a trade that has already triggered, even if you were we smart enough to get in it and now want to brag about it.

Schaap