The Trend Commandments

The Trend Commandments

  The principles that successful trend traders use to make money in the markets is difficult for the average investor or trader to understand. Readers unfamiliar with systematic trend trading have a hard time trading for profitability without trying to predict where price will go. Most successful trend traders have preset, planned entries that are triggered by a … [Read more...]

Understanding Market Movement

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   A few key points to remember when analyzing market movements: Uncertainty causes much of the volatility, as neither buyers, sellers, or holders have the majority conviction to control the trend. Unexpected good news causes the market to (generally) go up as the new situation is priced in. Expected good news is usually sold into when announced, because the … [Read more...]

Magic of Compounding Returns

Compounding Returns

  "Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it." - Unknown When I was a teenager, I was fascinated with compounded return tables. They seemed like magic to me.  I knew that at some point in the future, I could build up my capital to the point where it made more than I did. If I managed my capital … [Read more...]

How to Trade the Election Results

          The biggest question I have received today from everyone, new traders, friends, family, even my wife is "What will happen to the stock market if Obama wins?' or "If Romney wins will the market rally?" How should we trade the election results? .....Don't. Do not let the results color your trading, trade price action, trade the chart, trade … [Read more...]