This table shows the probability expressed as a percentage for the odds that you will have a certain number of consecutive losing trades in each 100 trade sample of your trading. For example if your win rate is 50% then 9% of the time you will have 10 losing trades in a row for each […]
Win Rate and Drawdowns Cheat Sheet Read More »
Here are the Elliott Wave Theory rules showing how each wave tends to work out in comparison to past waves, the key correlations with the Fibonacci levels. and approximately the percentage of time that price tends to stay inside each Fibonacci level. This is a quick reference cheat sheet for those wanting to track Elliott
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One big question so many people currently have that are knowledgeable about economics and investing is “What the hell is going on with the stock market?” As the pandemic expanded around the world in late February and early March economies of entire countries and then U.S. states started to shut down and quarantine their citizens
What the Hell is Going On? Read More »
This is a Guest Post by Jake @TrendSpider In this blog post, make sure to check out the top 5 TrendSpider charts posted this week on social media as well as the link to sign up for this Sunday’s show at 6 PM EST!
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A drawdown is when your trading or investment account goes lower from its all times high in capital. Your account is either making new all time highs or in a drawdown. No trader or investor continually makes all time highs, everyone spends some time in a drawdown. One of the most powerful ways to insure
Max Drawdown Recovery Rate Cheat Sheet Read More »
Robert Shiller and Burton Malkiel recently did a debate on Pairagraph on the topic: Does Covid-19 Prove the Stock Market Is Inefficient? The article is reposted here by permission. This is a guest post from pairagraph.com. Genesis by Robert Shiller Economist, 2013 Nobel Prize: The gyrations of the world’s stock markets around the time of the onset of the coronavirus,
Does Covid-19 Prove the Stock Market Is Inefficient? Read More »
Here is the option play strategy guide from my Options 101 eCourse. The columns give the names of the option play and the sentiment that an option trader would have when they open the position. You can also see if whether the profit and risk is open ended or capped with the contract size if
Option Strategies Cheat Sheet Read More »
A follow-through day is a bullish signal created by William J. O’Neil to quantify a high probability change in a current stock market direction from a downtrend to starting a new up trend. Follow-through days signal during downtrends, corrections, and bear markets when a key stock market index closes much higher than the previous day’s
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In technical analysis a Fibonacci retracement is a trading methodology for determining high probability support and resistance levels on a chart. It uses the Fibonacci sequence and that is where its name comes from. A Fibonacci retracement uses the theory that price swings on charts will usually retrace and backfill a mathematical portion of a
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The Wolfe Wave chart pattern is created when price action makes 5 waves showing the key supply and demand areas that create a zone of support and resistance as buyers and sellers fight back and forth until a breakout of the expanding range occurs to a projected price extension. Wolfe Wave patterns can be created
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One of the best places to get free historical price data going back over 60 years is finance.yahoo.com. Yahoo Finance provides historical price data that can be easily downloaded into Microsoft Excel and then used through the spreadsheet to backtest and study by creating formulas and filters. Here are the steps to download the historical stock
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This is a Guest Post by Jake @TrendSpider. In this blog post, make sure to check out the top 5 TrendSpider charts posted this week on social media as well as the link to sign up for this Sunday’s show at 6 PM EST!
Current Chart Patterns on SPY QQQ and IWM Read More »
Have you ever been curious if certain months of the year have any statistically significant stock market returns better or worse on average than other months. Here are the statistics for monthly S&P 500 index performance from 1950 to 2019 to let you see if you see any patterns. Month: Number of times with positive
Best and Worst Months for the Stock Market Read More »
When a market’s price action falls straight down making lower lows continuously without stopping or bouncing back it is considered a ‘falling knife’ on a chart because of its speed and trajectory. It’s not a good idea to buy into a chart with plunging price action that can’t find support before there is a signal
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A cognitive bias is a mental pattern that breaks from logic, reason, and the ability to rationally judge something through the filter of facts and reality. It is when an individual’s thinking is so clouded by their own subjective reality, memories, and experience that they are unable to interpret new information correctly. A cognitive bias
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Is technical analysis bullshit? Many people will dismiss technical analysis as useless before doing the homework to even fully understand what it is or how it should be used. Dismissing technical analysis as bullshit after hearing that academics dismissed it in a paper is like saying no one can make any money in the stock
Is Technical Analysis BS? Read More »
“It’s a big club, and you ain’t in it.” – George Carlin The long term trend of the stock market is up. Not individual stocks, as some go up 1,000% and others go to $0 over the years. However, equities as an asset class tend to go higher over five and ten year periods most
It’s a big club and you ain’t in it Read More »
Look for a mission in life not a job. “Choose a job you love and you will never have to work a day in your life.” – Oriental proverb A career has a path where education and experience leads to growth in value and pay. A job can be any place you go to receive
This is a Guest Post by Jake @TrendSpider In this weekend blog post, you will find our “Top 5 TrendSpider Charts This Week”, weekend analysis, and the link the this Sunday’s event! Make sure to check out our Sunday Event, “Lesson’s From Volatility Masters” this weekend starting at 10 AM EST!
Current Stock Chart Patterns on SPY QQQ and IWM Read More »
Ray Dalio designed an asset allocation that is supposed to be able to weather any economic storm, manage risk exposure, and make steady returns over the long term. He calls it the All Weather Portfolio and it diversifies by holding multiple asset classes: bonds, commodities, and stocks. Tony Robbins first made this portfolio popular in
The Ray Dalio All Weather Portfolio Read More »