Many traders don’t understand what it means to have an edge in trading. It is simply an advantage in the markets that over time leads to your winning trades adding up to more than your losing trades. There are potential edges in every market and in each time frame from scalping to value investing. What […]
Define Edge: What Does It Mean To Have An Edge? Read More »
Most traders are familiar with the most popular trading book of all time Reminiscences of a Stock Operator by Edwin Lefèvre that describes Livermore’s life through a fictional character, but few know that he wrote a trading book near the end of his life called How I Trade in Stocks that did not sale well at
Interesting Facts about Jesse Livermore Read More »
The Bullish Tasuki Gap candlestick pattern is a three-candle continuation pattern during an upswing in price that signals the uptrend will continue. The first candle in the pattern is a large bullish white or green candle making a higher high and higher low than the previous candle. The second candle is also bullish and white
Tasuki Candlestick Pattern Read More »
What does “Memento Mori” mean? It is Latin for ‘remember that you must die’ [one day]. The most successful generals in ancient Rome were awarded a “triumph” entry into the capital city on their return from victorious campaigns. It was a magnificent spectacle and parade that was meant as a ceremony to honor and appreciate
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Options are traded on contract markets and unlike stocks there is someone short and someone long every option at all times. Options are a zero sum market as there is always a winner and a loser in every price move. Someone has to write every contract and there must be a buyer and they both
Bullish markets and bearish markets are very different in the sentiment and price dynamics. Money made in bull markets can be given back in bear markets so a bullish bias can be dangerous when a real long term bear market arrives. People tend to think of the stock market as a whole as bullish or
Bullish vs Bearish Read More »
The RSI indicator buy and sell signals are based on oversold and overbought conditions on a stock chart. The RSI is a measurement of price moving too far and too fast in one direction and as the RSI gets extended farther from the 50 RSI middle line the probability of a reversion to that mean
What is RSI in Stocks? Read More »
Stock prices falling is perfectly normal in the market. Pullbacks are not something unusual or to be worried about in the stock market until they trigger a potential bear market. Stock market drop parameters: Down -5% is a pull back. Down – 10% is a correction. Down -20% is an official bear market. Down -50%
Stock Prices Falling Is Perfectly Normal Read More »
What traits separate the minority of profitable traders from the the majority of unprofitable traders in the markets? Here are the 12 key traits I have seen and studied over the past three decades in the financial markets that separate successful traders from the unsuccessful ones that don’t make it. From the start the traders
The Anatomy Of A Successful Trader: 12 Key Traits Read More »
Guest Post by Dan @TrendSpider The Volume Indicator (RVOL) Relative Volume is calculated by taking the ratio of current volume relative to an average. It gives you a quick way to see how much volume relative to a period and which direction it is pointing in. Features for this indicator on the TrendSpider platform: Customizable
Relative Volume Explained Read More »