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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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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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.

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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.

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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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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. 

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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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Open Interest For Options Traders

When you examine an options chain, there will be a column that’s titled open interest, which can be a very useful tool for options traders.

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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.

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MACD Indicator And Center Line Crossovers

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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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 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

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 Analysis Methods for Options Trading

Unlike traditional assets, options offer traders the flexibility that comes with different calls, puts, strike prices and expiration dates; not to mention the ability to create hundreds of different types of spreads and combinations to take advantage of different types of market conditions, volatility disparity as well as seasonal tendencies.

Continue reading

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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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.

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.

Continue reading

Swing Trading Tips For Beginners

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.

Continue reading

High Probability Chart Patterns To Watch

Today I want to discuss a few different chart patterns that beginners should focus on when they first start out day trading.

Many traders start out with what I call indicator fascination and delve into advanced analysis methods that can confuse them and often times discourage them from continuing trading.

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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. My goal is to find a market group and continuously monitor the stocks in that sector for pullbacks away from the main trend.

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.

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.

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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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Swing Trading Indicators – Advance Decline Line

Not All Trading Indicators Are Created Equal

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.

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MACD Indicator And Center Line Crossovers

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.

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.

Continue reading

Swing Trading Options Strategies

Over the last few months,  I’ve received several emails asking me questions about Swing Trading Options Strategies and how to apply our trading strategies to the options market. 

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Technical Analysis Basics – The Moving Target Strategy

The Moving Target Strategy Can Make A Difference In Your Bottom Line

During the last few weeks, I received a few emails asking me to go over some technical analysis basics. This is not a very unusual request, I regularly get at least 10 emails per week asking me to teach more simple strategies and basic analysis techniques.

Continue reading

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.

Continue reading

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.

Continue reading

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

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

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 .

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Swing Trading Tips For Beginners

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.

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

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

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.

Continue reading

Introduction to Historic and Implied Volatility

When figuring out the true value of an option, volatility can be the most important factor that will influence the options price over it’s lifetime. At the fundamental level, volatility means movement of the underlying asset. 

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Best Technical Analysis Methods for Options Trading

Unlike traditional assets, options offer traders the flexibility that comes with different calls, puts, strike prices and expiration dates; not to mention the ability to create hundreds of different types of spreads and combinations to take advantage of different types of market conditions, volatility disparity as well as seasonal tendencies.

Continue reading