A lesser known chart pattern is the Adam and Eve double bottom. This chart pattern is formed when one sharp V-shaped first bottom low is made on high volume. This is the first ‘Adam’ bottom. Then the price bounces back higher but later goes lower a second time to create a second cup shape as […]
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Book value is a fundamental metric used to measure the intrinsic value of a company with the ratio of price/book value. This valuation metric can at times create a price support level for stock prices as this is the valuation that value investors will come in as buyers. To quantify the current value of a
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A drawdown is when your trading or investment account goes lower from its all times high in capital. Your account is either making new all time highs or in a drawdown. No trader or investor continually makes all time highs, everyone spends some time in a drawdown. One of the most powerful ways to insure
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The Wolfe Wave chart pattern is created when price action makes 5 waves showing the key supply and demand areas that create a zone of support and resistance as buyers and sellers fight back and forth until a breakout of the expanding range occurs to a projected price extension. Wolfe Wave patterns can be created
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Have you ever been curious if certain months of the year have any statistically significant stock market returns better or worse on average than other months. Here are the statistics for monthly S&P 500 index performance from 1950 to 2019 to let you see if you see any patterns. Month: Number of times with positive
Best and Worst Months for the Stock Market Read More »
Look for a mission in life not a job. “Choose a job you love and you will never have to work a day in your life.” – Oriental proverb A career has a path where education and experience leads to growth in value and pay. A job can be any place you go to receive
“Hard work beats talent when talent doesn’t work hard.” ― Tim Notke There are plenty of people with talent. There are people born with some innate talents naturally over others. As someone enters higher levels of competition whether in sports, business, academics, or investing, talent is not enough. All your competition has some level of skills and
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This is a guest post from Tino @tradersreality. This article originally appeared on tradersreality.com and is reposted here with permission. Everyone’s effort towards understanding the psychology of how to trade, really goes to waste if there is no understanding of how the market really works. There is massive pressure on new and developing traders to learn various ways
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The phrase ‘Scared money don’t make money’ is used in many ways by diverse people from the Hip Hop community to the trading and investing world but what does it really mean? People that are too afraid to take on risks in business, life, and financial markets are unlikely to make money because rewards only come from
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In his book “Fooled by Randomness” author N.N Taleb shows the dangers of seeing patterns where there is only random noise, the danger of confusing luck with skill, and believing things can be predicted with accuracy that are simply randomly occurring. Randomness can become especially dangerous in trading and investing in the financial markets as
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