How to Take a Pulse of the Markets Using These 5 Stocks
How does a trader get a quick pulse of the market? There are indices and sectors galore along with way too much information. This adds up to information overload and not enough time to intelligently decipher the information into a meaningful trading strategy.
After years of studying the markets and just plain experience in the business world, I started to focus on 5 stocks. These 5 stocks give me a quick picture of the overall attitude of the market and give me a heads up to trend changes in the market. Think of it this way. The foundation of a house cracks and crumbles before the house falls. Looking at components of the market gives a good indication as to the condition of the market’s foundation. Consequently, I look at these 5 stocks first every evening and then proceed to look for trading opportunities.Read More
Group Strength: A Force Not To Be Ignored
Birds of a feather flock together - proverb
The concept works with people - you are likely to become the average of your five best friends.
And it's true on Wall St., too.Read More
The Art of Forex Trading Excellence
Complete Currency Trader’s primary trading philosophy is based on exploiting individual currency strength and weakness.
The principle idea of buying strength and selling weakness is as old as speculative markets themselves, and is indeed a fundamental key strategy for investors in all marketplaces. However, when it comes to Forex, the idea is lost on all but a tiny minority of traders. By far, the majority of amateur retail traders participating in Forex speculation ignore this winning strategy (or are simply unaware it even exists).Read More
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.Read More
Trading Unusual Options Activity in a High Volatility Environment
With post election market swings happening in magnitude larger than we have seen in a long time a lot of retail traders are struggling to stay on the right side of the market. A slew of technical indicators that seek to show retail trader where big money is putting their risk capital seek to better inform traders on where they should be placing their speculative bets. With such large daily moves in equity markets traders want to know where the “smart” money is positioned. Making this determination is very difficult if we only look at the stock market. Dark pools and other centers of off exchange liquidity make it nearly impossible for a trader to determine the positing of institutional money in any give stock or ETF. Since most equity volume is hidden from retail trader we need another method for tracking institutional money. This is where unusual options activity comes into play.Read More
Stephen W. Bigalow
High Profit Candlestick Signals and Patterns
As long as buyers and sellers have been trading the markets, two predominant sentiments have been in play: fear and greed. Centuries ago, Japanese rice traders developed the candlestick method to graphically depict trader sentiment. It has worked successfully for hundreds of years, and still works today. Candlestick analysis can help you make better trading decisions about investor sentiment in the markets. There are 50-60 signals to learn, but eight of the most successful candlestick signals will be discussed in this lesson.Read More
Why Options are the Better Choice for Holding Positions
Have you ever done the math on how much money you tie up when you hold a stock overnight, even using margin? Let’s do that now. Let’s say that I buy 500 shares of a $68 stock. That’s $34,000 in value. With typical 2-to-1 overnight margin, I can hold that position using only $17,000. But what exactly does that mean in terms of my risk, and is there a better approach?Read More
Mindset to Minimize Options Trading Risk
When I was a kid, my father used to always tell us to keep the screen door closed. We lived in a rural area and it seemed that all the flies would congregate at our house. Whenever someone opened the door, the flies would enter. If you ever enjoyed the experience, flies have a way of relentlessly buzzing around your head at 5 am. Most annoying, the only thing to do was to wake up and swat them. Of course, by that time, it was your sleep that was interrupted, and often made for a miserable day to come.Read More
How to Make Big Profits Trading 30 Year Bond Futures
If you are an active trader, it’s important to build futures into your trading activity. Why? Because all markets are exposed to risk, and you want to hedge yourself. For example, if you only trade Apple (Nasdaq: AAPL), and Apple is doing fine, you can do nothing, or you might want to consider going long on the Nasdaq (NQ) futures. If you are long AAPL, but the stock starts moving against you, you can hedge your position by shorting NQ. Everyone who trades the stock market should have a small futures account so that you can hedge.Read More