Price tops are strange things, they tend to happen when the maximum bullishness is in place and the company underlying the stock is as profitable as ever. What gives? Well many things cause tops, whether they are short term or long term. Here are some examples. Profit taking sets […]
What Causes a Price Top? Read More »
The Perfect Trader is patient with entries and exits, they are focused on what works not personal opinions. They do not worry about missed trades, the Perfect Trader does not boast while winning and does not become depressed while losing. They are never too proud to admit when they are wrong and exit their trade.
The Perfect Trader Read More »
What a great day in the markets for traders and investors that were long. The Dow Jones Industrial Average tacks on almost 200 points and gets back over 13,000 with a hundred points to spare. Monsters stocks springing back to life all over the place. You know the ones where
Four Big Fat Short Plays Read More »
My trading consists of trading existing trends wherever they are. There is nothing I like better than to find a stock or ETF breaking out to all time highs or breaking down to all time lows after being range bound. I also like to buy off key supports in longer term trends like the
The Anatomy of a Trend: 10 Guidelines Read More »
With the market in correction and with many of my favorite monster stocks like Apple and Price Line stopping me out a week ago after losing their 5 day ema and then after I was out even falling back to their 20 day simple moving averages. I had
10 Reasons Why I am still short Groupon Read More »
The forward written by Jeff Pierce for my new book “Show Me Your Options!” Steve Burns and I met by chance, however it was inevitable that we would bump into each other given our similar trading styles and how active we are on Twitter in our niche. I was looking for someone to contribute
Stock Options: Where Do You Start? Read More »
On Friday the 13th our heightened sense of awareness probably labels many things as unlucky when the odds are they are normal things but we notice them more today than ever on this ‘unlucky’ day. The same thing happens in trading when we get purely lucky and think we are
What is Luck & What is Skill in Trading? Read More »
I have been trading successfully for thirteen years, I have studied trading intensely for seven years. I have read and reviewed hundreds of trading books on Amazon.com. and I have also used most trading styles along with option strategies. I even had three books published on trading. What have I
My Top 10 Trading Influences Read More »
In trading the money is not in opinions it is in following the actual price action and going where it takes you. The long term money is not in the big bets it is in controlling your risk so you can keep some profits. The money is not in being
I Will Show You the Money $$ Read More »
People lose money shorting stocks because they do it wrong. Easy money is made in bull markets by being long monster stocks not trying to bet when they will stop going up. This kind of shorting does not put the odds in your favor, shorting is not even worth the
Five Great Short Plays Read More »
Just like members of the US Army Special Forces stand out as being special for their green berets, stocks that have green prices on days when the majority of the market is in correction are very special also. These are ones to add to watch lists, study charts, look at
The Green Berets of Stocks Read More »
Just about every new trader who launches into trading before doing the proper homework ends up ‘blowing up their account’ which is generally considered suffering a 50% or greater draw down from their original equity starting point. Some of the signs of being in danger is just trading your opinion
Trading: The Art of the COMEBACK Read More »
In trading focus is crucial. You have to know who you are as a trader and exactly what your method and trading plan is, and you must follow it. In trading discipline makes money, focus makes money, monster stocks make money, while risk management allows you to keep the money
Picky Traders are Good Traders Read More »
Most new traders generally go looking for the holy grail of trading. That system that just prints money, they believe it exists and will look relentlessly for it. However there is no holy grail of trading. The closest thing a trader can get to a holy grail in trading is a robust mechanical trend following
Many new traders fail in the stock market simply because they rush in without putting in the proper time and discipline in doing their homework. Trading is a professional endeavor much like any other career, you will only get out of it what you put into it. There is no easy money, you will have
Trading: Doing the Homework Read More »
In trading the money is not made in the entry, it is in the exit. The art of the exit is crucial to a traders success in the markets. Profits can disappear if you do not take them at the right time, small losses can become huge losses if you do not cut them short.
The 7 Best Ways to Exit a Trade Read More »
The most important thing you must learn in every market cycle is where the money is flowing. It is flowing into the companies where the earnings are growing. As long as mutual funds have capital in flows instead of net out flows then they must put new money to work investing in stocks. If you
The Secret to Trading Success Read More »
If you could wager money on the winner of the NCAA tournament at the very beginning of the bracketed tournament, what would be the best strategy? If you could pick ten teams as possible winners would you have a better chance of winning by picking the bottom 10 seeds #55
The NCAA Tournament and stock picking Read More »
In the spirit of April Fools Day here are the ‘Ten Most Foolish Things a Trader Can Do’. In no particular order of foolishness. Try to predict the future movement of a stock, and stay in it no matter what. Risk your entire account on one trade with no stop
The Ten Most Foolish Things a Trader Can Do Read More »
Monster stocks are those wonderful beasts that make you look like a genius trader. Shorts think that they are way too expensive and will crash, so they go short and have to cover en-mass after another 10 point run; they create even more buying pressure. Traders that short monster stocks do not understand the momentum
Find a Monster Stock in 15 steps Read More »