This is a Guest Post By Robert F. Smith @RobInTheBlack of Smith’s In The Black YouTube Channel Algorithms, a traders best friend. Wait, What?? One of the most common misconceptions in Trading is that “Algorithms are picking Me Off”. Nothing could be further from the truth. Perhaps you’ve had this happen to you. You place a stop order under […]
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A trading journal is a trading book you write about yourself. A trading journal has two uses, the first is to move your feelings, thoughts, and ego issues out of your mind and on to paper so you can see patterns of psychological error. Creating a profitable trading system is only the first step to
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RSI indicator buy and sell signals are based on oversold and overbought conditions on a chart. The RSI is a measurement of price moving too far and too fast in one direction and as the RSI gets extended farther and farther from the 50 RSI baseline the probability of a reversion to the mean increases.
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Pure price action signals use the current price alone to indicate when to get in and when to get out of a trade. It is possible to use pure price action signals to create systems for entry and exit signals to trade. A range trader will use a repeated price level that hasn’t broken as
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On a bar chart an inside bar is a single bar which is smaller than the previous one and within the range of the highest price and lowest price of the last price bar. An inside bar can be located in relation to anywhere inside the last bar, the top, the middle or at the
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Contango is a situation in the price action of the commodities market where the futures forward price of a commodity is more than the spot price expected of the futures contract at its maturity and delivery date. The opposite condition in the futures market to contango is called backwardation. The commodity market is in backwardation
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In the trading world there is an ongoing debate in many circles on whether trading price action alone is best or if technical trading indicators can add value to trading decisions. Many believe that trading based on price alone is the best way to trade as you are don’t over complicate your decisions with the
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In my opinion these are the twelve top trading movies ever made based on popularity and entertainment value. The Big Short: This is my all-time favorite trading movie. It told the stories of three traders that bet against the housing market bubble and won big. Wall Street: A tale of all that is wrong with Wall Street
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The marubozu is a Japanese candlestick pattern used as a technical indicator of extreme price action inside a specific time period. The marubozu shows visually that an asset has been bought or sold with momentum in one direction with a candle and closed at either its high price or low price of the trading period.
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The broken wing butterfly is an option play that is also called a skip strike butterfly and can be constructed with calls or puts. It is an adjustment to a conventional butterfly option play. This strategy using call options consists of embedding a short call option spread inside of a long call butterfly spread. An
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The long high beta, short low beta is a statistical arbitrage trading strategy that is a bet against beta. To implement this type of strategy you must first find stocks with higher betas than the market and short them. The second side of this strategy is to buy long positions using leverage in stocks with
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The married put is an option trading play created usually when a trader is bullish on the stock in the long term but also wants to limit the downside risk of loss in the shorter term. This strategy gives the stock owner all the benefits of owning the stock like capital gains and dividends but
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Here are the Berkshire-Hathaway portfolio holdings managed by Warren Buffett as of March 31, 2020 that were reported in the 13F filing to the SEC on May 15, 2020 along with other filings. His portfolio holdings by sector: Information technology 39% Financials 35% Consumer Staples 16% Consumer discretionary 5% Industrials 3% Health Care 2% Company/Ticker/
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Here are five of the best movies about finance currently available on Netflix as of this writing. They each explore different areas of finance like business building, leading a corporation, having an edge in blackjack, career risk, and managing personal finances. Why ‘Netflix and Chill’ when you can ‘Netflix and Learn’. Steve Jobs: Gives audiences
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If you already have a Netflix account here are some great financial documentaries you can watch with the subscription you already have. Here is a list of some of the top financial documentaries available on Netflix that as of the time of this writing that can be informative, educational, and entertaining. Dirty Money: This is
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A lesser known chart pattern is the Adam and Eve double bottom. This chart pattern is formed when one sharp V-shaped first bottom low is made on high volume. This is the first ‘Adam’ bottom. Then the price bounces back higher but later goes lower a second time to create a second cup shape as
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Warren Buffett is one of the greatest investors, stock pickers, and CEOs of our time. There are some intangible things he looks for that you can’t put in a stock screener. When buying a stock he sees it as buying a business and he wants to buy future consistent cash flows for a discounted price.
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Benjamin Graham is the creator of what is known today as value investing. He was the author of the classic book ‘The Intelligent Investor’ and co-authored ‘Security Analysis’. Graham was a successful money manager. He was also a teacher at Columbia Business School and UCLA’s Anderson School of Management with one of his top students,
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In options trading, moneyness is the relationship of the current price of the underlying asset to the strike price of a call or put option contract written on that asset. With options trading, the difference between ‘in the money’ and ‘out of the money’ is entirely based on the relationship between the strike price to
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Trading patterns in the financial markets are created by the action of traders and investors buying and selling positions in different time frames. Here are the different types of patterns that emerge through buyers and sellers behavior. Buyers and sellers are always equal with every trade it is the price levels that they meet at
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