Return in 2015


Winning Trades


Profitable Days

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Welcome to the Underground Trader!

Undergroundtrader.com has been serving traders for 17 years, through the Pac Rim crisis, Internet Bubble, 11 rate cuts, 11 rate hikes (thanks Greenspan!), Housing Bubble, Sovereign Debt Crisis, HFT boom bust and so on. We have members that are still with us since day 1 of January 1998. There’s a reason we are still around. Substance.

Algorithm and High Frequency Trading Programs:  Friend or Foe?

While the pecker heads are debating about the pros and cons of algo/hft programs, we are gaming them on a daily basis.  Are they good for the markets or not?  To us, it’s very simple.  If you are ahead of the algos, they can magnify the price movement so quickly like a riptide in your favor, they are definitely a FRIEND.  If you are late to the game, then they will steal all liquidity and make you chase fills and then rug pull once you are in, leaving you high and dry, FOE. We like to be on the FRIEND side of algo/hfts and know how to do it.


We trade WET TRADING CLIMATES and avoid DRY TRADING CLIMATES during the day.  Unlike the traditional measurement of market strength indicated by how much the Dow Jones is up or down on the day, we don’t care about that.  For a trader, the Dow can up be + 200 points but leave very few opportunities to profit or the Dow can be up + 9 point with a ton of opportunities.  There is a clear disconnect between how well the benchmark indexes are trading and the climate for actual trading.  Jea Yu has established this distinction by categorizing the actual market trading climates as WET and DRY irregardless of how the Dow Jones or S&P 500 index is trading.  The trading climates indicate how fruitful the opportunities are for daytraders.

What is a WET CLIMATE?

Have you every tried to explain to someone who lives indoors what WIND looks and feels like?  It is invisible; yet, you can see the effects when the trees sway and leaves go flying.  You can feel the effects when you step outside.  Yet, to the naked eye, it is still invisible.  This is what a TRADING CLIMATE is like when explaining to a traditional investor who only judges the market performance by benchmark indexes.

A WET trading climate is one where stocks have liquidity, momentum, and volume and follow through with magnified explosive price movements.  A WET climate has strong trends and oscillations with volatility.  A WET climate exists because there are the most amount of market PARTICIPANTS.  Robust and explosive price movements.

A DRY trading climate is one where stocks move very little as volume and participants are the lightest.  Trends are flat. Price movement is RIGID, flat and full of wiggles with little net gain. DRY climates are also thinner in liquidity making it hard to get filled with size without the bid/asks moving away from you.  This is the realm of the apex predators, algo/hft programs that chew up and spit out retail traders.

We stick to trading the WET CLIMATE and avoid DRY CLIMATES intra-day.  This is how we maximize liquidity for our members and magnify quick profits while neutralizing risk.  Risk is based on position size and duration of holding time.  We temper that with high probability set-ups with higher probability near-term targets to optimize the risk and probability dance to generate the by-product of profits.


Does this sound familiar to you? You sign up for an educational chatroom.  You encounter multiple moderators making a zillion alerts with very little explanation of the reasons for the alert or any guidance, leaving the individual traders to fend for themselves or even cattle call alerts on cheap penny stocks pump and dumps with OTC stocks cannibalizing their own membership?  And then claiming the losers as winners?  Talk about pouring salt on a wound.  No tracking of results.   The cliché ‘Earn while you learn’ has been over-used and abused in this industry.  Usually it’s losing while you get lost.

What WE do:

Undergroundtrader.com is the place people go AFTER they have tried the other services and determined where the VOID in their trading lies.  Our specialty is FILLING THE VOID and nourishing our members with knowledge, guidance and profits.  There is nothing more naturally fulfilling than attaining enlightenment and feeling yourself EVOLVING and growing once again.  We take stagnant traders and active investors and place them on the right track towards growth.  This is why we have been in operation for 17 years! We have meticulously calibrated our approach to account for liquidity, precision entry and exits and real time educational analysis tempered with proper pacing and allocations to help our members first generate a morning income stream, then educate through osmosis.  Our reputation is built on substance.  There are 5 factors that make us stand out from the crowd.

Preparation:  9:15am: Watch list (4-10 stocks) review with specific price areas of interest including perfect fib levels to watch + strategy.  When a set-up is forming, Jea will give a ‘CUE UP’ heads up alert that includes the stock, recommended shares, direction BUY/SHORT and price area of entry (I.E.  Cue up 500 FEYE Long @ 45.15).  This readies the members for entry IF it triggers.

Focus:  We stick to stocks we are familiar with, mid to large cap highly liquidity stocks usually priced from $15-$130.

Precision Execution:  We often scale into positions and out of positions like the market makers so that the market impact is minimal.  We stake out liquidity and utilize high probability set-ups like perfect storms, mini pups, seed waves and market structure based super fib reversions.

Thorough Analysis:  While in the trade, we explain what is happening and what needs to happen to trigger a potential move and how and where we want to exit.  The live video stream of the charts allow for the most in depth educational experience as we use text and audio to explain and give color commentary on what is happening with the trade.  We explain that ‘the SPY is nearing a super fib reversion area and FB is buyfading a perfect storm trigger for a move towards a super fib on the 1-minute mini pup coil’.  Don’t understand?  No problem, watch and learn when the alert is called and narrated from entry to exit.  Learn while you earn or just watch and learn.  Either way, OSMOSIS will take over as long as you let it sink in with time.

Closure:  We get our members in and out.  Bottom line, we are looking to make profits consistently every morning during the wet trading climate and then hit the brakes before the dry climate sets in.  We tally up the totals and wrap it up with a review and Q&A.  If the climate looks to extend, then we may hit the last 90 minutes of the day.  The bottom line is that the market dictates what we trade and how much we trade, not a schedule or a static policy!   You don’t have to be faster, you just have to be PREPARED.  Preparation and a little prudency TRUMPS speed! Check out a typical day in our chat room for free right now: A typical day in our day trading chat room

21/90 Rule:  It takes 21 days to create a habit and 90 days to create a lifestyle.

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