Everyone understands the simple process of buying a stock. You type in the stock symbol and how many shares you want then click buy, then when you are ready to sell your stock you press sell and the quantity of shares you want to sell. This is simple and easy to understand. Selling a stock […]
How To Short A Stock Read More »
Almost everyone is familiar with legendary investor Warren Buffett who is known as the Oracle of Omaha. Mr. Buffett who has been the richest man in the world many times has reached celebrity status. His lesser know Berkshire-Hathaway partner Charlie Munger is a man that is also one of the most respected men in the
10 Best Charlie Munger Investing Quotes Read More »
This is a Guest Post by Jake @TrendSpider. In this weekend’s analysis, we take a look at the broad market ETF’s SPY, QQQ, and Bitcoin. There will be no webinar this weekend but make sure to sign up for next weekend’s with our guest from “The Chart Report”.
Triangles and Trend Lines on the Charts: 9/29/19 Read More »
A price action trading system is a process for using new price data to make buy and sell decisions on a watch list of markets. A price action trading system attempts to use entry and exit signals that have an edge by creating good risk/reward ratios that lead to profitable trading. There are five primary
5 Steps To Creating A Price Action Trading System Read More »
Paul Tudor Jones is one of the greatest traders and money managers of his generation. He has had no losing years in his primary fund for decades. He was able to more than double his capital under management during the Black Monday Crash of 1987 while others faced huge drawdowns and account blow ups. He
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Netflix (NFLX) has been on a tear since 2012 but peaked in 2018 and has yet to best its All Time High. So, what gives? Currently it is trading almost 40% below peak levels and one should start to wonder if it is a buy or not because buy-low and sell-high is one of the
How Low Can Netflix Go? Read More »
Jesse Livermore was an early innovator in the trading world as one of the first traders to create a trading plan and a system. He basically invented price action trading and trend following in the early 20th century. He had higher highs and lower lows than most people can even imagine, he both became wealthy
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A moving average crossover signal is when you use both a short term moving average and a long term moving average on the same chart. A crossover signal is generated when the moving averages break above or break below each other. A trader buys when the shorter term moving average crosses over the longer term
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Technical indicators give traders ways to quantify and measure price action. A technical indicator can show the direction of the current trend, volatility, momentum, and whether a market is overbought or oversold. The best use of technical indicators is to use them to create great risk/reward ratios on entry. Technical indicators can also be the
What Are The Best Technical Indicators? Read More »
IRAs and 401Ks are designed to enable people to save money in investment accounts by offering tax advantages for doing so. These retirement accounts were meant to replace the defined employer pension plans of the past. With a pension plan an employee received a defined perpetual payment every month from their employee based on years
What is Better a Roth IRA or 401k? Read More »
I get asked all the time the question: “What moving average is better the simple moving average or the exponential moving average?” The answer to this is that it depends on the market you are trading and what your backtests show on your specific markets. The simple moving average is just that, simply the moving
What Moving Average Is Better? SMA vs EMA Read More »
When traders want advice on their trading what better place to go than someone who had both big and consistent returns over a very long period of time? “Mr. Seykota himself has put together a money management track record with returns of roughly +60% net of fees over the three-decade span of his trading career…”
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“Trade what’s happening, not what you think is gonna happen.” – Doug Gregory In trading there is only one time frame you can trade on: the present moment. You can’t time travel to the past or future to enter a trade so everyone is stuck trading in the present moment. Your decisions in this present
How To Trade What You See Read More »
Most trading books explain the principles and philosophy of trading, and I have read hundreds of them. Very few give examples of trading systems that have an edge and show the equity curve of the system as it is traded through different market environments. Here are eight trading books that discuss several systematic ways to
Books That Are Trading Strategy Guides Read More »
Here are ten reasons a stop loss is so important in trading: A stop loss defines your price risk by quantifying what price level you will exit a trade at. A stop loss helps define your trade size. By knowing what price you are going to exit a losing trade you can set your position
Why A Stop Loss Is Important In Trading Read More »
Jim Simons was a hedge fund manager and a mathematician. He was a quantitative investor and the founder of the hedge fund Renaissance Technologies. His hedge fund specialized in systematic trading using quantitative models derived from mathematical and statistical analyses. Mr. Simons primary models were on pattern recognition. He contributed to the development of string
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Linda Bradford Raschke was one of the top traders featured in Jack Schwager’s book ‘The New Market Wizards’ her trading results were outstanding both as a floor trader and when she moved to trading at home from her own office. She had consistent success in her own personal trading and even made seven figure profits
Review of Linda Raschke’s New Book: Trading Sardines Read More »
Trend following is the process of trading in the direction of the markets price action and staying with the trend until it ends. A trend follower must have a quantified winning process for entering when there is a signal and then either exiting for a small loss when a trend fails to be established or
Top Five Trend Following Indicators To Use Read More »
The RSI (Relative Strength Indicator) is a is a momentum oscillator that measures the speed and change of price movements. The RSI moves in a bounded range between zero and 100. I use the RSI on the (14) setting on the daily chart. The RSI is generally overbought when its reading is above 70 and oversold
How I Use the RSI Indicator Read More »
This is a Guest Post by Jake @TrendSpider. In this weekend’s analysis, we take a look at the broad market ETF’s SPY, QQQ, and Bitcoin. We are also excited to have guest, John AKA “TrueBubbleHead” on Twitter who is the founder of positive-trends.com, on our webinar on Sunday to discuss how he uses Raindrop(TM) charts in
The Key Trendlines on the Charts: $SPY $QQQ $BTCUSD Read More »