Wealth Building Tips

Wealth Building Tips

The 2X Inside Day Strategy Revisited

One of my favorite day trading techniques is to utilize swing trading or short term trading strategies and reduce the time frame to intra-day once I’m comfortable trading the strategy using longer time frame.

 

Continue reading

Short Term Trading Indicators – Bollinger Bands As Trend Filter

Today I’m going to show you how to use one of my favorite short term trading indicators to determine market conditions and market direction. The Bollinger Band was invented by John Bollinger in the early 80’s. It is mostly widely used as an indicator to locate overbought and oversold market conditions. It quickly became one of the most popular short term trading indicators.

Continue reading

Profit Targets and Expectancy For Active Traders

Most traders who start out learning day trading or short term trading tactics tend to focus on the entry method the most when they first start out.

There have been countless studies to prove this point and if you doubt me just go online or take a look at a trading magazine and you will see articles and advertising for entry methods that produce high percentage of winners to be the most popular topic online and offline.

Continue reading

How To Analyze Stocks Using Technical Analysis

Today I will show you a simple process so you can learn how to analyze stocks in a systematic way.

I will show you some of the same steps that I teach my students and practice myself daily.

Continue reading

Breakout Trading Strategies 101

Today I’m going to show you how to incorporate simple channel breakout trading strategies into our trading plan.

Often times traders transition from short term trading to day trading using simple methods such as channel breakouts.

Continue reading

Swing Trading Tips For Beginners

Every month I get numerous requests for swing trading tips from traders who are just starting out.

What I typically do is make a note of the most relevant and frequently asked questions and answer these questions in a monthly article.

This month I received dozens of great questions relating to several different topics and I will do my best to answer these questions in today’s article.

Continue reading

The RSI Is One Of The Best Swing Trading Indicators

A few weeks ago, I wrote a short how to article describing how to use swing trading indicators. The one indicator I focused on was the RSI or the Relative Strength Indicator.

After I posted the article I received several questions and comments asking for further examples so that traders could get a better feel for using this method to swing trade stocks. In this tutorial I will outline the steps I go through to apply the divergence method to stocks in more detail.

Continue reading

MACD Chart Divergence Analysis

The last few days I focused on demonstrating the different parts of the MACD indicator so that you would become familiar with MACD and more importantly less intimidated when analyzing MACD chart patterns. Most beginners have difficulty learning the MACD because it’s made up of several parts that interact with one another.

Once you understand how the MACD line is calculated and understand what each of the three parts of the indicator calculate the indicator becomes very simple to understand and moreover to utilize.

Continue reading

Best Technical Indicators – Learn The Stair Step Method

Recently,  I demonstrated how to take a simple stochastic indicator and create one of the best technical indicators for short term trading.

Today I’m going to expand and show you another entry method using the same indicator and the same settings. If you have not read yesterday’s article or have not seen the video, there’s a link to both at the bottom of  this page for you to review.

Continue reading

Trading 20 Day Exponential Moving Average

Last weekend I was asked by numerous traders who practice technical analysis of stocks and commodities, what indicator I preferred to use the most.

The answer was the Exponential Moving Average or (EMA) for short. I demonstrated yesterday how to use the EMA to measure pullbacks away from the main trend.

Continue reading

Swing Trading Indicators – Advance Decline Line

There are dozens if not hundreds of different  trading indicators traders use to help them gauge short term market action.

One of the most important and often misunderstood indicators is the (NYSE) Advance Decline Line.

Continue reading

How to Pick Winning Stocks

Stock traders are always on the lookout for ways to improve their trading. There are hundreds of different Stock Market Analysis Tools to choose from when analyzing stocks and the stock market in general.

Each week I get emails from around the world advertising new and improved technical indicators and trading tools to help you increase your percentage of winners, increase the size of your winners and decrease the number of losing trades and the size of each losing trade.

Continue reading

How to Trade Breakouts

Not All Stock Chart Patterns Are Created Equal 

There are hundreds of stock chart patterns traders use to enter as well as exit the market.

One of the most if not the most popular entry method is the breakout. A few weeks ago I wrote a short article outlining success rates with breakout stock chart patterns.

Continue reading

Stock Swing Trading Strategies – Can You Pick Market Tops?

Today’s topic is going to cover stock swing trading strategies that assist traders in locating market reversals.

During the last few days the market has been selling off a bit and if you watched financial news channels you would have noticed that whenever the market slides off a bit, there’s always talk of doom and gloom.

It’s the way the news media has operated for as long as I can remember.

Continue reading

How to Find Trending Markets and Manage Your Risk

Many traders, who are starting out, have a strong believe that swing trading stocks techniques have to be complex to be profitable. I want to reiterate again as I have mentioned many times this is just not true. There is no correlation between complex strategies and profitability.

Continue reading

Swing Trading: Introducing The 52 High/Low Strategy

There are hundreds if not thousands of swing trading stocks strategies that are available to traders today. Unfortunately, the majority of these strategies or techniques don’t provide the results traders are looking for.

Moreover, one of the biggest reasons traders don’t follow trading rules is because the strategy seems overly complicated or too advanced for beginners.

From speaking with hundreds of traders this past year alone, most traders want simple easy to locate patterns or swing trading stocks strategies that don’t require hours of analysis.

Continue reading

The 2X Inside Day Short-Term Trading Strategy

One of my favorite day trading techniques is to utilize swing trading or short term trading strategies and reduce the time frame to intra-day once I’m comfortable trading the strategy using longer time frame.

Once I reduce the time frame I then determine if the strategy has promising qualities with the limited intra-day time frame.

Continue reading

If You Had One Indicator For Trading Technical Analysis What Would It Be?

I participated in a trading webinar this past weekend where I demonstrated a few strategies to about 1,000 traders. The question I got asked the most over and over by at least 20 participants was to provide my favorite indicator for trading technical analysis strategies. My explanation was rather simple; the best indicator is the one that fits the type of market environment that you are currently trading.

Continue reading

Swing Trading Options Strategies

When I started trading back in the early nighties, my progression was Stocks, Commodities, Index Futures, Stock Options, Forex. By the time I started trading options I already knew enough about the markets and more importantly about risk to make reasonably good trading decisions. But looking back, if I started trading options instead of other markets, I doubt I would have developed the necessary foundation and discipline to succeed with options.

Continue reading

How To Trade Channel Breakouts

One of the first trading methods I learned was a simple channel breakout. What I like about channel breakouts is they are so simple to learn and it doesn’t take much to identify these channels.

The first thing you need to do is identify a channel. I will use daily charts to demonstrate this but you can apply this to any time frame you prefer. If you are applying it to intra-day charts and want to day trade using this method, that’s great but make sure you enter the trades no later than 1:00 after the opening bell, the reason for this is simple.

Continue reading

Short Term Trading Strategies – Learn To Use The RSI Indicator

Today I’m going to discuss one of the most popular indicators for short term trading strategies. Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements.

The RSI indicator was invented by  J. Welles Wilder and features RSI in his 1978 book, New Concepts in Technical Trading Systems along with a few other indicators that I will be featuring in the next few weeks

Continue reading

Four Principles Of Trading Momentum

From Charles Dow, Robert Rhea, and Richard Schabacker – all early pioneers of stock market technical analysis – four driving principles of market dynamics have endured the test of time and still guide technical trading decisions across all time frames.

Each of the following principles can be quantified mathematically and most (if not all) mechanical trading systems are based on at least one principle.

Continue reading

Technical Trading Strategies – The Tail Gap Strategy Revisited

Those of you who follow my trading videos and this blog know that I’m a big proponent of simple technical trading strategies.

Many traders believe that complex methods are better or have a better winning to losing ratio.

I will tell you from many years of trading that this is simply not true.

Continue reading

Both The RSI And Stochastic Can Help You Create Profitable Short Term Stock Trading Strategies

I typically receive dozens of emails from traders who are just starting out asking me for help in creating short term stock trading strategies.

A few weeks ago I demonstrated a strategy using the RSI indicator; I received several emails from readers asking me to explain the difference between the RSI Indicator and the Stochastic Indicator.

Continue reading

Momentum Breakouts: How To Track Volatility With VIX Index

The VIX is calculated using a rather complex formula to derive expected volatility by averaging the weighted prices of out-of-the-money puts and calls. Fortunately, the calculation is performed by the CBOE exchange, so the trader doesn’t have to perform complex mathematical calculations to derive volatility levels manually.

There are two common misconceptions that many beginners options traders have about the VIX index. First, VIX uses both puts as well as calls to calculate it’s value. I’ve stumbled upon several articles and videos over the past few years that forget to mention that calls are involved in the calculation to the same extend as puts.

Continue reading

The RSI Is One Of The Best Swing Trading Indicators

A few weeks ago, I wrote a short how to article describing how to use swing trading indicators. The one indicator I focused on was the RSI or the Relative Strength Indicator.

After I posted the article I received several questions and comments asking for further examples so that traders could get a better feel for using this method to swing trade stocks. In this tutorial I will outline the steps I go through to apply the divergence method to stocks in more detail.

Continue reading

Best Short Term Trading Strategies – ATR Calculation

The ATR indicator stands for Average True Range, it was one of the handful of indicators that were developed by J. Welles Wilder, and featured in  his 1978 book, New Concepts in Technical Trading Systems.

Although the book was written and published before the computer age, surprisingly it has withstood the test of time and several indicators that were featured in the book remain some of the best and most popular indicators used for short term trading to this day.

Continue reading

Stock Chart Patterns – How To Trade Breakouts

Not All Stock Chart Patterns Are Created Equal 

There are hundreds of stock chart patterns traders use to enter as well as exit the market.

One of the most if not the most popular entry method is the breakout. A few weeks ago I wrote a short article outlining success rates with breakout stock chart patterns.

Continue reading

Stock Swing Trading Techniques – How To Balance Or Equalize Your Positions

Today topic is going to be Stock Swing Trading Techniques - How to balance or equalize your positions.

Last week I wrote an article about relative strength between two related stocks or other related markets. I used the SP Stock Index and the Nasdaq Stock Index as examples of this. If you missed the article or the video, there is a link to both immediately below this article.

Continue reading

Technical Analysis Patterns - Continuation Patterns

Last week I demonstrated how to use basic technical analysis patterns to help you learn to apply the Descending and the Ascending Triangle chart pattern.

Over the weekend, I received several emails asking me for more tutorials on simple chart patterns and how to identify the correct market conditions for using these chart patterns.

Continue reading

The 50 Day Moving Average

Today I wanted to discuss one of my favorite indicators for market sentiment as well as direction. Today I wanted to discuss one of my favorite indicators for market sentiment as well as direction. I usually separate the two topics but today I thought I would combine them because today the SPY which the ETF that tracks the S&P 500 index is right smack in the middle of hitting the 50 day moving average.

Continue reading

The Best Swing Trading System In The World

During the last few months, I received over one hundred emails from traders asking me what the best swing trading system is and how they can purchase or create such a system for themselves. I thought I would write an article detailing this important topic so traders could understand the real issue at hand.

Most traders who start out go through a process, this process fortunately or unfortunately depending on how you look at it, is remarkably similar for most traders.

Continue reading

The Best ETF Swing Trading Indicators

There are several different type of indicators that ETF traders use for market entry and exit. Most ETF indicators are based on technical analysis and technical chart patterns This report will outline the basic type of indicators that work best for ETF Swing Trading.
 

Continue reading

Its October, Time to Take the Money and Run?

October 14, 2017

This week, most key US Equities indexes hit new highs again, with the Dow industrials leading +.52 %.   This upcoming week marks the 30-year anniversary of the great market meltdown or the crash of 1987.

October, although generally a good month for stock market returns, also hosts the biggest market selloffs including the great crash of 1929. Borrowing a quote form Henry Wadsworth Longfellow “and when she is good she is very, very good; but when she is bad she is horrid.”

Continue reading

How to "Buy the Dips" Like a Pro Market in focus: Starbucks (NASDAQ: SBUX)

You know what the EASIEST way to make money trading is?
Trade WITH the larger trend. If the trend is down, sell the rallies. If the larger trend is up, buy the dips.

Continue reading

If I Had to Choose One Indicator for Technical Analysis, It Would Be This

I participated in a trading webinar this past weekend where I demonstrated a few strategies to about 1,000 traders. The question I got asked the most over and over by at least 20 participants was...

Continue reading

Precision Trading: Simpler Than You Think

One of the easiest ways to dramatically improve your potential and skill as a trader is to simply slow down and focus on one market.

Novice practitioners immediately reject such a thought.

Continue reading

The #1 Secret To Trading Success The Gurus Don’t Want You To Know

Hold on to your hat. I’m going to be brutally honest about trading. More honest than anyone has been with you before.

But if you truly care about becoming a profitable trader and ending the non-stop losses, struggle, and frustration, then you’ll read this with care.

Continue reading

How the Greats Trade Stocks

Let me explain how investment strategies turned people to become great investors.

Long-term investment philosophy has been one of the significant contributors for the success of many of the investors across world. Most of the successful investors did believe in investing money to get long- term benefits in the stock market. Paul Cabot’s State Street Research Investment Trust had been working with an objective to achieve long-term growth and income and capital. Similar approach was adopted my many in options trading. People need to be cautious which choosing right options trading strategies to get their expected returns on their investments.

Continue reading

The Top 87 Stocks & ETFs for Weekly Options Success

You’re probably wondering by now, why do we trim our watch list to 87 stocks, indexes and ETF’s for our weekly (sometimes monthly) option trades?

The answer is quite simple: LIQUIDITY.

A liquid asset is anything that can be bought and sold easily. Options on Stocks, Indexes and ETFs with good liquidity have tighter Bid/Ask spreads and have more daily trading volume and open interest.

Continue reading

Using Futures as an Indicator

By now, most people who pay attention to the financial markets realize that what happens in Asia and Europe will affect our market here in the US.  How many times have we woken up in the morning to hear CNBC or Bloomberg telling us that the European markets are down 2%, that futures are pointing to a lower open, and markets are below fair value?  We now live in a global economy;  what happens overseas will drive our markets higher or lower depending on what occurred while we were sleeping.   This causes the S&P 500 cash, Dow 30 cash, and NASDAQ 100 cash indexes to gap up or down at the US open.  If you are on the right side of the market, this could be a good thing, however, most feel the pain as the bad news drives the markets lower.

Continue reading

Technical Analysis: The Importance of Money Flow

When it comes to trading, one of the best ways to tell what’s happening is by paying attention to the flow of money in and out of a stock. None of us want to buy a stock if money is flowing out, right? Of course not… It’s a great way to lose money.  Instead, we want to buy if we’re seeing money flow in.

Continue reading

A Crash Course in Stock Spin-Offs

Following the herd is the surest way of achieving mediocre performance. To produce superior returns, investors have two options.

First, be smarter or know more than the other guy. Legendary investor, Howard Marks, refers to this as “second level thinking." For example, “Everyone thinks Apple has peaked and sales will begin to suffer. But I believe they are wrong and the company’s brand loyalty and continued innovation will generate greater-than-expected sales and profits. Therefore, I’m going to buy the stock even though the talking heads on CNBC prefer Samsung.”

Continue reading

Why I sold Every Mutual Fund I Had

Mutual funds are one of the biggest scams ever pulled on the average investor.

Despite high fees, over diversification, and decades of staggering underperformance, well-dressed salesmen (“financial professionals” as they call themselves) continue to herd our personal wealth into these abysmal products.

Continue reading

The Biggest Reason Why Investors Never Become Rich

If you want to be a millionaire, that’s great. I wish you all the best of luck.

But you won’t get there if you don’t take the time to learn, practice, or even allow emotion to dictate how you trade.  It takes discipline in the end.  Without it, you’ll never reap the rewards that many stocks offer. 

Continue reading

The Absolute Best Entry Points for Stocks

Over the years, we’ve found that studying nothing more than charts can help traders break away from the herd-like pack and spot moves before they actually happen.

While homework on fundamentals is essential, it’s a terrible idea to pull the trigger on any trade without first looking at the chart.  Stock ABC may seem fundamentally strong after further review, but if the chart shows resistance at current prices, and a higher likelihood of failure, you need to be aware of that.

Continue reading