Wealth Building Tips

Wealth Building Tips

Support And Resistance Trading Tactics

One of the best ways for beginners to get their feet wet is to learn simple support and resistance trading strategies.

Often times beginners who know very little about financial markets begin with advanced techniques that can land them in hot water very quickly if they are not careful.

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Using Moving Averages for Technical Analysis

I participated in a trading webinar this past weekend where I demonstrated a few strategies to about 1,000 traders. 

After the seminar ended I was asked one last time a slightly different question. The question was “if you had to choose only one technical analysis indicator, what would it be?

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How to Spot Channel Breakouts and How to Trade Them

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.

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Identifying High Probability Breakout Stocks

Today I’m going to show you a few patterns that are currently setting up in today’s market environment so that you can see by way of example the type of set ups that we are looking to trade in the coming weeks.

Keep in mind that these are not trade recommendations but a visual analysis of set ups so you can see how we visually analyze stocks when they are setting up.

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How To Choose The Right Put Option

Most traders focus on making money when underlying markets move higher, but most professional and seasoned traders focus equally on both sides of the market. You have to consider the fact that financial markets move down faster than they rise, giving you tremendous opportunity to profit from both sides of the market. Thereby, increasing your potential profit opportunities and decreasing overall risk to your portfolio over time.

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Cup And Handle Pattern Recognition And Chart Analysis

The Cup And Handle pattern is often used by traders for long term stock trading analysis. However, this pattern is also effective for short term trading strategies that set up over the course of a several weeks instead of years. The pattern also works surprisingly well with other financial markets such as futures, commodities and currencies.

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The RSI - 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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The 52 Week Pop Strategy

Today I’m going to teach you a great momentum strategy. This is one of the first strategies I teach people who want to learn to day trade Stocks, Futures and Forex markets.

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Understanding Delta and Directional Options Trading

One very important factor that many traders ask me about is how far in the money or how far out of the money they should go when buying an option.

In essence, the issue is Delta, which is the Greek term for the expected change in the option for every dollar fluctuation in the underlying stock.

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MACD Chart Divergence Analysis

Most beginners have difficulty learning the MACD because it’s made up of several parts that interact with one another.

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Technical Analysis Basics – The Moving Target Strategy

As you may be aware, there are dozens of different exit strategies. Just like entry strategies, they are based on either chart patterns; price action or technical indicators. Today I will cover one of my favorite exit strategies. I call this method The Moving Target exit strategy and after I demonstrate it you will see exactly why I call it that. 

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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.

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Risk Protection With Put Options and Stop Loss Orders

Most professional traders employ some form of downside protection to hedge their position against loss, caused by their long position turning against them and moving beyond expected trading range .

The biggest issue in this situation is figuring how much downside protection should be in place given the risk and the  potential return on the trade.

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The Bull Call Debit Spread Explained

A bull call spread is a vertical spread that relies on two calls with the different strike prices and same expiration date.

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Using the Stair Step Method for Swing Trading

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.

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Technical Analysis Basics – The Moving Target Strategy

As you may be aware, there are dozens of different exit strategies. Just like entry strategies, they are based on either chart patterns; price action or technical indicators. Today I will cover one of my favorite exit strategies. I call this method The Moving Target exit strategy and after I demonstrate it you will see exactly why I call it that. 

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Technical Trading Strategies – The Tail Gap Strategy Revisited

Simple Technical Trading Strategies That Work

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

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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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Bollinger Bands Strategy – How To Trade The Squeeze

Today I’m going to discuss a great Bollinger Bands Strategy. Over the years I’ve seen many trading strategies come and go.

What typically happens is a trading strategy works well on specific market conditions and becomes very popular.

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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.

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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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Identifying High Probability Breakout Stocks

Finding breakout stocks is both an art and a science. Traders rely on visual analysis as well as technical indicators to help them find high probability set ups that produce less false breakout signals.

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Advance Decline Line For Swing Trading

Most traders rely on basic indicators such as moving averages and oscillators to determine if the stock market is trending, how strong the current trend is and whether or not the market is approaching overbought and oversold levels as well.

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How To Trade Channel Breakouts

During the last month I received a few emails from traders who are just getting started. They were happy with the advice I was providing but wanted to know some easy swing trading method for anyone to follow.

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MACD Indicator And Center Line Crossovers

Taking Apart The MACD Indicator

Today I will focus on the most common way traders utilize the MACD and show you some basic examples so that you can become a bit more familiar with the MACD indicator.

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Learn Technical Analysis – The Right Way

During the last two days I presented basic techniques for beginners who want to learn technical analysis trading strategies. More specifically I focused on my favorite indicator the Exponential Moving Average or EMA for short. The first day I covered the basics of the indicator and demonstrated the difference between the Simple Moving Average (SMA) and the (EMA).

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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.

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Technical Analysis Strategies – Revisiting The 4×4 Strategy

One of my favorite technical analysis strategies and one I often recommend traders start off with is the 4×4 strategy.

If you don’t remember the exact rules for this strategy, you can watch the video by clicking this link. During the last several months I received many questions from traders who are now using this method to trade stocks and other financial markets.

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Swing Trading Stocks Techniques – Find Trending Markets And Manage 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.

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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.

Continue reading

Identifying High Probability Breakout Stocks

Today I’m going to show you a few patterns that are currently setting up in today’s market environment so that you can see by way of example the type of set ups that we are looking to trade in the coming weeks.

Keep in mind that these are not trade recommendations but a visual analysis of set ups so you can see how we visually analyze stocks when they are setting up.

Continue reading

Technical Analysis – Continuation Patterns

Today I’m going to show you how to utilize the symmetrical triangle and demonstrate the ideal market conditions for set ups using the Symmetrical Triangle chart pattern.

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My Favorite Indicator: The 20-Day Exponential Moving Average

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.

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Support And Resistance Trading Tactics

One of the best ways for beginners to get their feet wet is to learn simple support and resistance trading strategies.

Often times beginners who know very little about financial markets begin with advanced techniques that can land them in hot water very quickly if they are not careful.

Continue reading

Cup And Handle Pattern Recognition And Chart Analysis

The Cup And Handle pattern is often used by traders for long term stock trading analysis. However, this pattern is also effective for short term trading strategies that set up over the course of a several weeks instead of years. The pattern also works surprisingly well with other financial markets such as futures, commodities and currencies.

Continue reading

Stock Swing Trading Strategies – Can You Pick Market Tops?

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.

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Day Trading And Swing Trading Tips For Beginners

Today I’m going to teach you how to use the Average True Range (ATR) Indicator to measure stop loss placement levels as well as profit targets. I discussed the ATR previously in past articles but I want to show you a real demonstration so that you can feel more comfortable incorporating this indicator into your trading plan.

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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.

Continue reading

Swing Trading Tips For Beginners

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.

"In your tutorials you always talk about trends having a slope 20% one way or another. How exactly do I know if the market is sloping 20% one way or another?"

Is there a tool to measure the slope?

Yes, there are two tools that you can use to measure the slope of a trend.

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How to Identify and Trade Breakouts

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.

The basis of the article was to show readers how using different time length to determine breakouts could substantially change your success and failure ratio.

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MACD Trading Tactics For Beginners

Today I’m going to introduce you to the MACD trading indicator. The MACD indicator is a trend momentum indicator that’s basically a refinement of the two moving averages and measures the distance between the two moving average lines. MACD is an acronym for Moving Average Convergence Divergence.

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Stock Sector Analysis and Relative Strength

I typically begin my analysis of sectors by looking at industries that went through a long trend in recent years. I want to find sectors that have been beaten up and are ready to make a comeback or sectors that are trading above 1 year highs. 

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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.

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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.

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MACD Chart Divergence Analysis

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

Identifying High Probability Breakout Stocks

Finding breakout stocks is both an art and a science. Traders rely on visual analysis as well as technical indicators to help them find high probability set ups that produce less false breakout signals.

Continue reading

Learn Technical Analysis – The Right Way

During the last two days I presented basic techniques for beginners who want to learn technical analysis trading strategies. More specifically I focused on my favorite indicator the Exponential Moving Average or EMA for short. 

Continue reading

Relative Strength and Call Options

According to statistical analysis and based on over 20 years of trading experience, I can tell you without hesitation that very basic relative strength analysis between two related stocks or other assets is one of the best market timing methods that you will find.

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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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Technical Analysis: 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.

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Bollinger Bands Strategy – How To Trade The Squeeze

Today I’m going to discuss a great Bollinger Bands Strategy. Over the years I’ve seen many trading strategies come and go.

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