I like moving average signals for their power and simplicity in trend trading and here is why: Moving averages are a way to smooth price action and quantify a trend. Moving averages are tools that can work on any time frame. They can remove your predictions and opinions from your trading and replace them with […]
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After reading hundreds of trading books, here are the ones I found to be the best for helping me make money in the stock market specifically. ‘How to Make Money in Stocks: A Winning System in Good Times and Bad, Fourth Edition’ This book shows the results of the extensive research that William O’Neil put
The Five Best Stock Trading Books Read More »
On trade entry the risk/reward ratio measures a trades potential for loss versus the magnitude of possible profits. In backtesting the average of all the losses in a system compared to all the average gains gives you the system’s risk/reward ratio based on historical price action. Looking at your stop loss versus your profit
What is a Risk Reward Ratio? Read More »
This is a Guest Post by Troy Bombardia of BullMarkets.co. Market outlook: is this a V-shaped recovery? The stock market bounced this week after it tanked last week on trade war news. Is the stock market making a V-shaped recovery? Probably not. Technicals (short term, next 1-3 months): mixed. If I had to assign a probability to a
The Odds that the Stock Market Will Make a V-shaped Recovery Read More »
This is a Guest Post by Jake @TrendSpider. In this weekend’s analysis, we take a look at the broad market ETF daily Raindrop Charts (TM) and weekly hollow candles into mid-August. The markets were everything BUT stable with huge moves both to the downside and upside in all major broad market ETFs. To learn more about
The Key Trend Lines on the Charts: $SPY $QQQ $BTC Read More »
I first read the original version of this book over fourteen years ago, and it was the book that finally cemented for me the overall structure I needed to understand all the dynamics of profitable trading. I have read hundreds of trading books, and this one still stands head and shoulders above the rest. It
Trading for a Living Read More »
The fact that most traders don’t make money in the markets is no different a statistic than other fields. The majority of high school football players don’t go on to college scholarships and very few college football players get professional contracts to the NFL. Most players play for the passion and the dream. Traders have
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Contrarian: a person who opposes or rejects popular opinion, especially in stock exchange dealing. Being a contrarian trader is not as simple as going against the crowd on a trade. Doing the opposite of the popular opinion all the time will not win over time, instead it will likely put you on the wrong side
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The Average Directional Index (ADX) is a technical indicator that uses the Minus Directional Indicator (-DI) and Plus Directional Indicator (+DI) to visually show a group of directional movement indicators that can be used as a trading system and was invented by Welles Wilder. Mr. Wilder created the ADX to focus on the daily prices
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Markets only trend a small amount of the time, they spend most of their time going sideways or become volatile and go no where. While catching a big trend can be profitable after a break out or break down of a range there are other ways to make money. Swing trading is a trading method that
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In trading defense is under rated and offense is over rated.Too many new traders want to make money so bad they don’t even consider the risk of loss when the market becomes very volatile and plunges. Here are ten ways to manage risk and limit your losses during market plunges. Your maximum position size on
10 Ways To Protect Yourself in Trading Read More »
This is a Guest Post by Troy Bombardia of BullMarkets.co. Last week we explained why the market’s short term outlook is bearish. The stock market is now making a pullback, and trade war news isn’t helping bulls. Over the past year, tariff-related news has not been good for stocks in the short term. Technicals (short term, next 1-3
The Probability that the Stock Market Selloff is Over Read More »
This is a Guest Post by Jake @TrendSpider. In this weekend’s analysis, we take a look at the broad market ETF daily Raindrop Charts (TM) and weekly hollow candles into the first full week of August and compare how the crypto weekly charts are looking. To learn more about Raindrop charts and the platform in general,
The Trendlines and Fibonacci Levels to Watch Next Week Read More »
No matter how much a trader believes that they can predict the future, how strong their conviction is, or how much they believe, no individual trader or investor can control the outcome of a market move unless they have enough capital to move a market their self. Traders have the unique frustration that few other
12 Things A Trader Can Control Read More »
Backtesting is the process of applying a strategy of entry and exit signals to historical price data to see if the system would have made money in the past. Systems that create good risk/reward ratios with bigger winning trades than losers or a high winning percentage of trades with no big losses will backtest as
How to Backtest Stock Strategies Read More »
“If you can’t measure it, you probably can’t manage it… Things you measure tend to improve.” – Ed Seykota Keeping a trading journal is like writing your own trading book about yourself. Writing a trading journal forces you to put your feelings, thoughts, mistakes, risk management parameters, and ego problems on paper. Writing helps
30 Questions Your Trading Journal Should Answer Read More »
This is a Guest Post by Dan Fitzpatrick of StockMarketMentor.com and OptionMarketMentor.com. I have a question for all SMM/OMM members: Are you taking control of your own trading development, or are you looking for the magic bullet, the Holy Grail, the secret sauce, the sure thing? Are you actually putting yourself on a path to
Will You Pay the Price For Trading Success? Read More »
If we want a perfect entry, we will never trade. If we want a perfect company, we will never invest. If we want a perfect person, we will never marry. If we want a perfect job, we will never be employed. Perfection is not the goal, success is. A big stumbling block for new traders
Why Perfection Is A Bad Trading Goal Read More »
In the past 25+ years of being active in the financial markets I have been a big reader. As many people will sit and watch television, play video games or be on the internet for hours I have done the same thing with books. I love learning new things and gaining life changing information to
What I Learned Spending $5,000 on Trading Books Read More »
This is a Guest Post by Niclas Hummel, creator of the Risk Simulator and a trader living in Bangkok. “Trading is managing risk and being a trader is being a risk manager.” This simple statement implies two realities: There is always risk The only thing you can do is manage it So what can you do to be a
10 Tips For Better Risk Management in Trading Read More »