“Bear markets have no supports and bull markets have no resistance.” -William Eng Two big mistakes new traders make is to short a monster stock at all time highs believing it has to go down or going long a stock in a death spiral because it just can’t go any […]
A Tale of Two Types of Stocks. Rockets & Anvils Read More »
In trading there are moving averages that are watched by many traders. While the most popular are the 50 day and 200 day simple moving averages there is another very popular one that is watched and on many people’s radar. Many traders use the 20 day sma, 21 day
A Key Moving Average in Play Now Read More »
With most indexes breaking out to multi-year highs after the European debt crises appearing to be kicked farther down the road for now we are setting up for a possible run up into new price territory in many leading names. I am holding three positions going into Monday morning. While
The 700 Club of Stocks: My Top Three Picks Read More »
Do you use moving averages in your trading? If not, you are missing one of the very best indicators. Moving averages are powerful because they give traders a view of the market’s or stock’s trend in the moment. Including its volatility, along with possible
My Favorite Indicator Read More »
On this Labor Day when many are off work for a paid holiday I am working, looking at charts, planning, thinking and reading. Pondering what Tuesday trading may bring. Trading is NOT the path to easy money nor free money. Trading is work and a profession like any other, traders
10 Ways to Labor Towards Trading Success Read More »
Here are my thoughts on the top three stocks on my watch list. But be aware I trade a very fast time frame and could change my opinion at the open Tuesday if prices move strongly through support or resistance that changes what I think the stock
Three Charts: Here is What I See Read More »
Discretionary Traders Vs Systematic Traders In the classic Star Trek movies and television show Captain Kirk believed in his abilities to make the best decisions in the circumstances he found himself in. Mr. Spock contrasted against Kirk’s leadership style by using logic and reason along with probabilities of success to make the best
Do You Trade like Captain Kirk or Mr. Spock? Read More »
If you are a longer term trend follower and there is a long term trend, then you make money. If you are a shorter term trend follower and their is a trend in your trade you make money. Swing traders make money in range bound markets. Value investors make
Trader: Meet Thy Judge Read More »
[hr_invisible] Apple: For now still the same old monster stock story with a few added chapters. With Apple proving in court that Android is a copy cat and Samsung being told they must pay $1 billion in patent infringements to Apple , the stock shot up to all time highs in the post market
10 Reasons Why Apple $700 may be Inevitable Read More »
“There seems to be some perverse human characteristic that likes to make easy things difficult.” ~Warren Buffett “The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective.” -Warren Buffett The biggest thing that trips up many new traders and even more experienced and
K.I.S.S. Principle for Traders Read More »
This interview with master trader Chris Kacher first appeared in Your Trading Edge magazine. Like his colleague Gil Morales, Chris is a protégé of William O’Neil, the legendary investor and author of ‘How to Make Money in Stocks’. Along with Morales, Chris is one of the few to have traded O’Neil’s own funds as an
Ten Rules for Trading Pocket Pivots Read More »
While my trading is more following capital flows based on trends that I measure with key moving averages there is one chart pattern that I find very useful and that has high probabilities of success. The cup and handle pattern is a bullish continuation formation, it is one of the newer chart formations and
Why the Cup & Handle Chart Pattern Works Read More »
The strange thing about trading is the vast majority of traders lose money. Most studies put it at 90% as the amount of traders that are unprofitable in the long term. How can this be? The majority of traders are trading on emotions and predictions instead of what
10 Ways I Trade With the Winning 10% Read More »
If the markets can have a nice summer rally from here my two long picks are Apple & Google. Apple has just completed a nice “cup with handle pattern” and set up to break out at $620, if it breaks through the near term resistance we could see a quick
My Two Favorite Stock Picks For August. Read More »
If Apple products are still selling and market share still growing, this story is not over. Either $644.00 was the top and all time high for Apple or it goes to $700 as the next logical step. Unless there is a competitor that is stealing market share right now then Apple goes higher. Unless
Is Apple $700 Going to Happen? Read More »
Before you launch your trading career or continue it, it is important to ensure that your trading method works. This is where the homework comes in. Chart studies, computer back testing, the study of the success and failure rate of chart patterns, how monster stocks performed historically, and eyeballing charts around specific price action
For 36 trading days we have been below the $136 price in the SPY, there have been NO buyers above this level, only sellers waiting to take profits. Our first bounce off support after going into a down trend was at the 200 day moving average, not much time for
What a Range Bound Market Looks Like Read More »
With the powerful reversal off the $SPY 200 day and then the comeback after the reversal day I am ready to go long. The European Union headline risk was hanging over the market causing a lot of uncertainty and confusion but with the loan to the Spanish banks approved much of this will
My Next Buy Point and My Watch List Read More »
How do I make money in trading? I seek to profit from market trends. I am a short term trend trader. I seek to be long or short a stock or ETF that is in a trend and has the potential to trend for several days or weeks. I will trade anything that is
The Money is in the Trend Read More »
There are times with charts and markets that it is best to be out of them. With the current risk and volatility I have been trading smaller and smaller and less and less until finally I am only in a few positions for the first time all year. One of the keys to me holding
10 Things Traders Can Do Instead of Losing Money Read More »