Frequently Asked Questions
What are the rules in the Pit?
What are the buttons on the top of the trading pit (in the Java desk)? What are the other rooms?
What is the difference between Jay and Ral and how should I prepare for both?
How much does membership cost?
What are the recommended computer requirements to access/use the Pit?
What software do I need to access/use the pit ?
What kind of broker do I need?
What should I be doing when I first enter the Pit?
What is a typical day like in the Pit?
How do I set up a multiple-monitor display(s)?
Help! I'm having Technical Difficulties!
What are the guidelines for members and their conduct in the Pit?
The Trading Pit (#TradingPit) is the main chatroom during market hours. The Pit is moderated by Jay and Ral, who are the coaches and hosts: they are the only ones to call any trade alerts during the day. Any technical support questions should be addressed to the Sysops (whose nicks are prefixed by 'Sysop'), and who are available online in the pit from 8:00 am to 4:30 pm. While they can be contacted privately (by double-clicking their usernames in the user column on the right-hand side), the best way of getting their prompt attention is by entering the #Support channel (simply type /JOIN #Support ). Technical Support may also be obtained by emailing support@undergroundtrader.com at any time.
There are also Channel Operators (also known as "purple people") who are members of UnderGroundTrader that have exhibited particular expertise with an aspect of Trading and are willing to help members and share knowledge. As a general rule, direct any Trading/Stock-related questions you may have to the Channel Operators in the TradingPit, and direct questions involving technical issues to the Sysops.
Please note: if you are experiencing difficulties logging on, or have a technical question to ask, it is recommended that you click the "Help! I'm having Technical Difficulties!" link above and read this FAQ thoroughly - it very likely has the answers you need, and can deliver them faster than any one person :)
What are the rules in the Pit?
All paid members of UnderGroundTrader are allowed to speak in the Pit, and to use it as a forum to share information. Please note that, while we do encourage members to post news, point out specific chart formations, ax movements, breakouts and any other information with substance, we do NOT tolerate any hype or misinformation, nor do we allow traders to talk about bulletin board stocks (which are junk).
Traders are encouraged to post their entry and exit prices on trades that are not called in the Pit, and specific observations and commentary are always welcome.
Members are expected to treat other members respectfully at all times. We firmly believe we have the most technically savvy traders on the Internet, and UnderGroundTrader is both a sanctuary for the pure daytrader and a true, virtual community: as such, we will not tolerate anyone contaminating our environment.
For a complete list of guidelines for the pit, please go here.
Go to the Current Logs link in the Java desk to pull up all the logs for the current day. You can also do a keyword search. The Archived Logs link allows you to specifically pull up logs for any day up to a year back as well as special seminars.
What are the buttons on the top of the trading pit (in the Java desk)? What are the other rooms?
You will see buttons for the various other rooms in the Pit. First and foremost, the 'Float' button allows you to resize the chat window (very handy, that :)
You can also do that by typing /float.
To enter any of the other rooms simply click the button for the room located at the top of the chat window or type:
/newjoin #XXXX
With XXXX being the specific room you wish to enter, e.g.:
/newjoin #seminars
The support rooms usually have representative during market hours. These are the following rooms:
| #Support | This is for members in need of technical support revolving around any technical issues with UnderGroundTrader.com |
| #Seminars | This is where seminars are given usually M,W,F from 12pm est to 1:30pm est |
| #Cybertrader | Tech Support for traders using the Cybertrader broker (http://www.cybertrader.com) |
| #Social | The name speaks for itself :) - a social room for traders who want to mix, mingle or discuss otherwise off-topic, non-trading issues. |
What is the difference between Jay and Ral and how should I prepare for both?
Jay is the author of the UnderGroundTrader Level 2 Daytraders Handbook and the Undergroundtrader.com Guide to Electronic Daytrading (McGraw-Hill). His specialty is momentum, breakouts and reversals heavily utilizing Nasdaq Level 2, momentum ticks, tier synergy, index futures (S&P Futures and NASDAQ Futures), one minute stochastic charts and three minute moving average charts. His style is more focused on intraday momentum scalping as well as intraday swings and occasional multiday swing trades. It is highly recommended that you go to the Trader Training link and read his seminars detailing his methods as well as download his charts from the Charts link in the Java desk and thoroughly read the chart tutorial. When Jay sees opportunities throughout the day, he will give a setup explanation and play-by-play accompanying a trade alert with a price up to the limit which he feels dictates a safe entry. Jay is usually looking for plays that will reap the group at least a ½ point or more profit gain based on his technical and momentum indicators. You should never play a stock that you are not familiar with or haven’t at least watched on Level 2 and the charts.
Ral is more technically orientated with candlestick formations, Three Price Breaks, Seedwaves, market structure lows/highs, Fibbonacci targets and pivots. Ral’s method is based on many hypothetical portfolios and trades are made based on the style of each portfolio. Ral’s Manual and information describing his methods can also be found here.
What are the recommended computer requirements to access/use the Pit?
The recommended minimum computer is at least a Pentium 400 MHz with 128 megs of RAM (and the more, the better), with an internet connection no slower than a 56k dialup. The most important thing here is RAM. The more, the better! We also suggest getting at least 2 monitors and keeping one monitor completely dedicated to your brokerage screen.
Your Internet connection should be the fastest speed you can get in your area. If DSL is available, get it! Cable modems and ISDNs are second-best choices, with a dialup being the least recommended due to lack of stability. We also recommend at least one backup ISP who is not affiliated with your primary ISP, in case there are backbone problems on the internet.
What software do I need to access/use the Pit?
Actually, that's one of the most convenient things about it: Nothing!
Well, not nothing actually: you should have an operating system on your computer, a web-browser (preferably Microsoft Internet Explorer 4.x or better or Netscape Communicator 4.x) and have your Java/JavaScript and Cookies enabled. Technically, that is all you need to access and use the Pit :)
You can see a demonstration of that (and sign up for a free trial, if you desire) right here.
For those who prefer using straight IRC, mIRC is highly recommended as being the most stable, user-friendly, and easiest-to-configure client for the Pit. The most recent version is 5.7, and mIRC's homepage is here. If you have questions about mIRC itself, configuration, filtering out text, sound setup, etc. I suggest reading their Frequently Asked Questions page, which is here. Their program is self-installing, and has searchable Help built-in. Further details regarding the configuration of this client specifically for the Trading Pit are as follows:
undergroundtrader.com
Provided you've entered the correct username and password, you should have no problems logging in at all. If you do experience any problems logging in, that is a good time to make sure you typed in the correct password and username; if that is of no avail, email support@undergroundtrader.com.
What kind of broker do I need?
We recommend: Cybertrader and Cobratrading (make sure and specify you are a member of UnderGroundTrader). This is not a Browser-based broker like etrade or amertitrade; they are fully integrated trading platforms with point and click order routing and execution.
What should I be doing when I first enter the Pit?
The very first thing any trader should do is go directly to the Trader Training link in the Java pit; this is your beginning step into understanding the methods, if you are new to Daytrading (and even if you aren't). We also highly recommend purchasing our books and videos
We are firm believers in osmosis: Watch and observe - it's a lot of information to take in, so ease yourself into it, and let it all sink in. In the meantime, papertrade or use a simulator like CyberX. We strongly recommend you start off by watching a basket of stocks. This basket should be based on tier 1 stocks such as AAPL, BRCM, RIMM, AMZN. These stocks are linked to program trading and move fluently with the Nasdaq futures. Your basic setup of the charts should contain:
These can ALL be downloaded from the Charts link or Trader Training from the Java pit.
Traders should be measuring their gains in terms of Daily Goals (DG). These daily goals are your own personal and REALISTIC profit goals for the day. Beginning traders should shoot for small gains initially and work their way up from there; the goal is consistency, and what matters in the end is that you are profitable at the end of the day for as many days in a row as possible. Take it slow and easy and do not overtrade.
What is a typical day like in the Pit?
Traders start to flow into the Pit around 8am est. Ral’s morning report usually gets posted by 8:30am est every morning. This can be found in the Briefing link off the homepage. This outlines what Ral is watching and his commentary for the upcoming trading session. Jay will start commentary and posting news around 8:30am in the pit until 9:20am est. At this point, Jay performs his morning radar in the Pit and posts specific news and outline strategy prior to the opening bell. Jay may occasionally call trade alerts pre-market if he sees enough momentum and liquidity to justify a call. Trade alerts are suggestions for possible trades up to the specified limit price. Jay will usually provide the justification for the trade as commentary. Please note that many times are taken into consideration on trade alerts, especially volume and liquidity.
At the 9:30am est opening bell, Ral and Jay start their play-by-play commentary and trade alerts. The open is the most lucrative - and most risky - period of the day. Market makers are gauging ranges and are therefore more lenient on the open, allowing faster gains on fast spread movements. Timing is of the essence, and Jay specifically looks for GAP FILLS (stocks that gap and reverse and retest the gap price) and momentum strength. All trade alerts on the open are considered scalps ß fast in and out.
From 10am to 11:30 am is usually post open and the action slows down as Jay looks more for consolidation breakouts, cup and handle formation breakouts and power uptik breakouts. Action slows and swings can be implemented during this period.
11:30 – 1:30pm is what we call DEADZONE. Volume slips and liquidity slips which means momentum usually slips. Traders are off to lunch and this is usually the time where newbies will get headfaked and overtrade. We cannot stress it enough that traders should NOT OVERTRADE during this period. There are a lot of fake spread movements (market makers like to uptick and move spreads fast on very little volume) and there is a lot of faking and illusive stock moves and it is best to leave this period alone unless you are a seasoned scalper.
1:30-3pm is post-Deadzone. Volume starts to return and the trend for the afternoon session gets determined during this time. We look for consolidation breaks on stronger volume during this time period.
3pm – 4pm last hour. This is where the volume peaks again and the real action commences for the end of the day. 3:30pm- 4pm is as volatile and fast as the first ½ hour as traders try to find gappers and momentum breakouts.
4:30pm – This is when Jay usually posts his nightly report recapping his trade alerts for the day as well as a recap of the market action. This can be found on the Briefing link on the homepage.
How much does membership cost?
The membership price is posted on the page where you sign up; currently membership is $350 USD per month. Please note that signing up for the free trial places you under NO financial obligation, nor are ANY charges made to your Credit Card by an automated process - the flipside of that is that your trial membership automatically expires at the end of the period, unless you actively take measures to renew it.
How do I set up a multiple-monitor display(s)?
For that, I'd strongly recommend going to Maddog's page (which is located here and read through his articles on the subject. He has plenty of experience with it, has compiled a very useful compendium of difficult-to-find information all in one place.
Help! I'm having Technical Difficulties!
Then you clicked on the correct link :)
This section is due to undergo extensive expansion very shortly. Really, it is. Honest ;)
We certainly do, and have tried to make it as comprehensive and as easy-to-use as possible, so hopefully it will be of use to newbies and veterans alike.
It is available here.
We hope you enjoy your experience with us and please feel free to send any feedback :)
All suggestions and comments should be
sent directly to jay@undergroundtrader.com
All billing questions should be send to accounting@undergroundtrader.com
All STOCK-SPECIFIC questions should be directed to askjay@undergroundtrader.com
All non-stock-specific technical questions or support issues should be sent
to Our Support Staff.
ALL cancellations should be done online here.
Have a question not answered here? Please email it to webmaster@undergroundtrader.com :)
