Dr. Steenbarger recently shared his personal story with readers regarding a recent life-threatening medical emergency he encountered. We are so glad he is doing better and that he has shared his experience with us, including lessons learned. Not only do the three lessons relate back to trading, but to life in general. Dr. Brett’s three…
“If you are in the right sector at the right time, you can make a lot of money very fast” –Peter Lynch Sector Rotation Theory can help you invest (or trade) in the key sectors that are outperforming the market right now. There are always stocks in certain sectors that are “on fire” or “out…
I admit that I have not studied EquiVolume Charts extensively, so I wanted to give a brief overview and cite some relevent sources for further study. What differentiates an EquiVolume Chart from a standard Candle or Bar chart is the fact that the volume data is factored into the shape of the ‘bar’ or box,…
Here are a few bonus charts for your education: Potash (one of my darlings) We were stopped out of a 7+ day swing trade in Potash today when price was identified as ‘parabolic’ and we began trailing a stop beneath yesterday’s low which worked until today, and this method saved about $2.00 of profit that…
Today did some technical damage to the major indexes, with the Dow being spared breaking its 20 period moving average, as the other indexes have done. We are seeing possible unwinding of developing momentum divergences in many of the indexes (especially the Dow). We also see price rejection in the indexes as well as we…
Hermann Hesse is may be a strange source of wisdom for overcoming trading fears, but consider the following ideas. These quotes are taken from Hess’s work Demian where the title character Max Demian is speaking to Sinclair (main character) regarding fear and “the larger picture of the human condition.” “… You are only afraid if…
Bill Luby at the VIX and More excellent blogsite posted two recent compilations regarding investment books you should consider reading. The first list is entitled “Ten Anectodal/Historical Book Ideas for Investors” and includes one of my favorites: Alan Farley’s The Master Swing Trader. A second list which is very important to active traders/investors is his…
I read a post from StockBee which discusses a recent short exchange between a trader and Ed Seykota, a famous trend-following advocate. Seykota responds: “… trends do not exist. Like the past and the future, a trend is merely an idea. There is no such thing in nature. Trend is an idea about…
Attached is a harrowing picture of the current state of what’s strong in the market over the last three months. I am including a line chart and a bar chart to convey the point and clearly identify differences in prices: Clearly, we see that had you invested in the strong energy sector, you could have…
Dr. Steenbarger at TraderFeed has written a three-part (so far) series entitled “Trade Like a Scientist,” which includes insights on how to approach the markets from a structured, formal standpoint. The scientific method is standard operating procedure for any quality experiments, and experiments contribute to the known body of collective knowledge which comprises science. Trading…