by Oliver Velez The title of this lesson really encompasses many topics. I want to focus on the criteria here that determine your profit-to-loss ratio and share size. While this is not the first step in picking a trade, it is the most important. Let's look...
by Andy Chambers Symmetrical triangles are great patterns to trade. A symmetrical triangle is a continuation pattern that narrows until it finally erupts in a breakout. The best patterns have five legs, and each leg is smaller than the preceding leg. A move beyond the...
by Tom DeMark Once a stock is listed on an exchange or added to an index, the potential for additional interest is enhanced considerably. Index funds are required to include in their portfolios all components in various indexes, and margin requirements are often...
by Rob Roy The more time there is to expiration, the less sensitive the option is to stock price movement. The less time-to-expiration, the more sensitive the option is to stock price movement. The reason for this goes back to the Greek Gamma. The closer to...
by Dan Keen Some optionable stocks, but not all, have expiration dates that go out one or two years. These option series are called “LEAPS”, which is an acronym for Long-term Equity AnticiPation Securities. First introduced in 1990, these long-dated option...
Darrell Jobman Using futures and options, you can become very rich, very quickly and with easily identifiable risk, from a rather modest investment. If you are like most traditional investors who have never looked beyond CDs or the stock market, that’s a pretty...
by Stephen Bigalow A lot has been written through the years regarding Candlestick patterns, especially the Doji pattern. Of all the Candlestick patterns, the Doji pattern appears the most often. The Doji represents ‘indecision’ on the part of traders and it occurs...
by Ray Frazier Let’s discuss the use of options with trendlines. You will be determining the option type to use for the specified trendline or chart pattern, the buy point and an explanation of what to expect from each chart pattern. The first example is an...
by Don Wellenreiter Every month nearly all options, both put and call options, expire worthless, meaning that the overwhelming majority of call and put buyers lose money. That must mean that simply reversing that concept and selling options should be highly...
by Jea Yu As I developed as a trader, making the right transition from consistent loser to consistent winner, I began to look for reasons why I should not be trading. I looked for red flags that told me my setup had less of a chance of working. This is the...