The principles that successful trend traders use to make money in the markets is difficult for the average investor or trader to understand. Readers unfamiliar with systematic trend trading have a hard time trading for profitability without trying to predict where price will go. Most successful trend traders have preset, planned entries that are […]
The Trend Commandments Read More »
Chart courtesy of stockcharts.com The Elliott Wave Principle is a from of technical analysis that some traders use to analyze financial market cycles and forecast market trends by identifying extremes in investor psychology, highs and lows in prices, and other collective factors. Ralph Nelson Elliott (1871–1948), a professional accountant, discovered the underlying social principles
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A few key points to remember when analyzing market movements: Uncertainty causes much of the volatility, as neither buyers, sellers, or holders have the majority conviction to control the trend. Unexpected good news causes the market to (generally) go up as the new situation is priced in. Expected good news is usually sold into when
Understanding Market Movement Read More »
“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” – Unknown When I was a teenager, I was fascinated with compounded return tables. They seemed like magic to me. I knew that at some point in the future, I could build up
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The biggest question I have received today from everyone, new traders, friends, family, even my wife is “What will happen to the stock market if Obama wins?’ or “If Romney wins will the market rally?” How should we trade the election results? …..Don’t. Do not let the results color your
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Since the whole world is waiting on Apple earnings I felt I had no choice but to tell my blog readers how I see it. I have good news and I have bad news, which would you like first? Okay I will give them both to you straight. The bad
$AAPL The Good News & The Bad News Read More »
“It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.” -George Soros One element of trading that is over looked as traders chase hot stocks, trends, and chart patterns is the importance of taking
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Charts are my best mentors and moving averages are my best teachers. Entering into Monday Morning I am long Apple with an in the money $610 strike weekly call option but I am hedged with an out of the money $620 weekly put. Like me many traders see indecision
$AAPL My Indicators & My Trading Plan Read More »
Every new trader loves to focus on entries, hot stocks, what to buy, what stock might double, and how long they want to hold their stock. Stops are a very neglected subject with new traders, the best shot many new traders give to an exit strategy is either a price target or a quick scalp
Where Do I Get In and Out of a Trade? Read More »
“If you diversify, control your risk, and go with the trend, it just has to work.” -Larry Hite. We often hear of trading with an edge, but how do we know for sure we have an edge? How do we know that the odds are in our favor, and that the more we trade,
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