“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,…
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…
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…
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…
Have you been a bit befuddled by the recent stock market action? I admit that I have, but I expect such events and have experienced various strange scenarios in my trading career. If you are new at trading, the current market environment must be difficult to comprehend and I wanted to state a few of…
If this scenario has not happened to you, you haven’t been trading enough: You’re excited. You see your set-up or read a great news report on a company and can’t wait to execute the trade. You do, buying a bit larger position than you’re used to, but this is the ‘sure fire’ trade they say…
Although there are various websites and programs used to find strong and weak industries and sectors in the market, I use Prophet.net and compare results with Investortools. I do deep analytical scans the first weekend of the month and then cursory updates as needed (or desired) on the weekends if I’m not satisfied with potential…
I wanted to point out the recent action in the Dow Jones Utilities Index – it is a lesson on how momentum divergences play out. First, the chart: I have not annotated this chart (with trendlines) to show the divergences – note both oscillators making lower swing highs while price makes increasingly higher highs. Divergences…
Investors certainly are skittish lately. One of the biggest drags on the economy – many economists say – is the declining housing market and its effects on the American consumer. With stock prices still advancing, bad economic news has had little effect on the general market, at least not to the extent expected. We recently…