Wealth Building Tips

Wealth Building Tips

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.

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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.

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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.

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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

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.
 

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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.”

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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.

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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...

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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.

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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.

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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.

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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.

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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.

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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.

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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.”

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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.

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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. 

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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.

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