by Darrell Jobman Trend following is indeed a valid and profitable methodology, yet even the most trendy markets fall into consolidations or trading ranges about 70 percent of the time. We don’t know when markets are going to trend or when they are going to...
by Rob Roy A stock may consolidate into a wedge pattern as it gets closer to an earnings announcement. Traders may be holding back making trades while they wait for the earnings information to be released. The earnings announcement date is known well ahead of time...
by Dan Keen Stacking the Odds in Your Favor Options trading can be risky. However, writing covered calls is one option strategy that actually makes stock market investing a little less risky, and it should be part of the novice’s bag of strategies. Of...
by Stephen Bigalow Candlestick analysis is a simple approach to finding stocks that have the potential of making a strong move up or down in price. The advantage of Candlestick charts is that the trend is easily identifiable. Begin by making yourself aware of where...
by Ray Frazier The chart below of Ebay is an actual bullish trade that I made between August 13, and August 17, 1999. There is a flat line between 90.74 and 100.98, which is the resistance line that the stock had to cross before I would consider it was making a...
by Jea Yu Spreads Depending on the liquidity of the underlying stock, the spreads on options trades can vary from a few pennies to several dollars. This is why it’s very important that you scope out the liquidity and volume of not just the underlying stock, but the...
by Lee Gettess Leonardo Pisano de Fibonacci was a mathematician in the early 13th century. His major writings were not published until 1857, probably because no editor could determine what he was trying to say. His summation series basically was to add two numbers...
by Don Wellenreiter For many newcomers, their first type of trading is paper trading. This is where you trade the market as if it were real, except that orders are not actually entered, so you won’t experience actual loses or gains. This really is a good way for...
by Kathy Lien The FX market holds advantages over not only the equity market, but also the futures market. Many futures traders have added currency spot trading to their portfolios. After recapping the key spot foreign exchange attributes, we compare the futures...
by Peter McKenna Event Trading is a way to flee from Wall Street, to become independent and self-reliant. The only way to recover bull market losses, in my opinion, is to find a way to make good money in a short amount of time while keeping risk to a...