One of the best ways to become a great trader is to try new things.
Unfortunately, there’s no such thing as a perfect strategy. But if you’re willing to trade outside of the box, you can become a better trader.
Over the last 20 years, I’ve combined hundreds of different technical strategies.Read More
Markets are a fickle beast.
Even with the U.S. and China nearing a trade deal, markets began to pull back in March 2019.
While many shifted blame to the President for the move lower, we had to consider that markets were technically stretched. We were overdue for a pullback.Read More
Unbelievably, technical analysis is still written off as useless.
In fact, some denounce it as a laughable study of charts, patterns, and squiggly lines without any concrete or profitable results. Others argue it’s only good for short-term trading.
However, none of that is true.Read More
One of the best ways to spot reversals is by spotting excessive fear.
To do so, we typically watch for agreement among Bollinger Bands (2,20), MACD, Relative Strength (RSI) and Williams’ %R in either overbought or oversold territory. However, we can also strengthen what those indicators say by adding in the Money Flow Index (MFI).Read More
Traders are often told to buy excessive fear or greed.
Unfortunately, many aren’t aware of when to actually pull the trigger, or realize when fear or greed have gotten way out of control.Read More
We’re often told to “Never buy a stock hitting a 52-week low.”
“Stocks in downtrends tend to stay in downtrends.”
“Any stock hitting a 52-week low will always be weak.”
Or, “nothing is more destructive to amateur investors than thinking that a stock trading near a 52-week low is a good buy.”
However, none of that is true.Read More
The trend is the most important concept in technical analysis.
Its strength or weakness can dictate the overall direction of your favorite stock or index. Potential uptrends can be characterized by a series of higher highs. Potential downtrends can be characterized by lower lows.Read More
“Explosive growth with minimum risk!” Does that sound too good to be true?
Covered calls are typically portrayed as a conservative strategy. A way for investors to generate additional income based on stocks they have in their portfolio without taking on significant risks.Read More
If you pull a rubber band too far, too fast, what happens?
It snaps back, right? The same thing happens with stocks, indexes, and currencies. If they’re pulled too far in one direction, eventually they’ll snap back and revert to back to the mean. In fact, we see it happen all the time.Read More
By now, you’re well aware of how to find trends using simple moving averages, such as the 50- and 200-day moving averages. But you should also know how to potentially spot when a trend could stop dead in its tracks, or birth a new trend.Read More
Support and resistance are two of the most powerful technical indicators on the market.
Without watching either, you may just buy or sell at the wrong time.Read More
We’ve all seen fortunes made.
Unfortunately, we’ve also seen fortunes lost in a matter of seconds.
To this day, one of the biggest reasons for sizable losses is failure to protect profits and cut losses timely with tools, such as the trailing stop loss. But we have to realize that without any kind of exit strategy in place, emotions could come into play.Read More
There are many traders that just won’t subscribe to technical analysis.
What technical analysis allows us to do is pinpoint where fear and greed are getting a bit out of hand. They allow us to measure market psychology, if you will.Read More
2018 was quite a year for IPOs.
There were 188 of them, raising up to $45.7 billion. By the way, that’s about 47% greater than 2017. More than likely, we would have seen more if it weren’t for the crazed volatility.Read More
Candlestick patterns may have some odd names.
Abandoned baby bottom, three black crows, dark cloud cover, for example. But these are some of the most powerful tools you can add to your strategy, including these three.Read More
2018 will go down in history as one of the most volatile on record.
But believe it or not, one of the most consistent ways to make money on the market is by trading excessive fear, as dictated by the Volatility Index.Read More