As mentioned in previous posts, you don’t have to be right to make money. In fact, the need to be right can actually cost you money! If you find yourself frustrated by incorrectly guessing the market or a stock’s direction, give up! No, I don’t mean quit trading. Try a different strategy. Stop trying to…
If you are fed up with trying to guess the direction of the market and being wrong, try experimenting with these trading ideas: Place stops on alternate sides of technical decision nodes By this, I mean find a spot where the market reaches a known barrier and forces itself into the difference between two outcomes….
I have read many times how it is more important to make money in the market rather than be right-on with your opinion of price action or market direction. How many times have you excitedly told your friends or family what the market was going to do the next day? Or what direction a particular…
Although I don’t incorporate stock relative strength charts as much as I should, I am going to begin posting more on this concept as I better understand the implications that can be interpreted from adding this additional tool to the analysis arsenal. Relative strength charts compare price change relative to another security (or index or…
Many articles have been posted regarding the axiom: “Sell in May and go away,” which is in reference to studies that show that the market’s worst performance begins in May and ends in November. While performance is mixed on various years, it is helpful to study the last 5 years of market action (as evidenced…
Here is the most updated weekly swing chart of the US Dollar Index, which is on par to do one of two things: Make new lows or find support & reverse (temporarily). Notice the two momentum divergences. We are currently experiencing a ‘buy’ divergence at a place where the market reversed in the past (2005)…
Here are three charts that show past opportunities and some possibilities for the futures. All charts are for educational purposes and have minimal annotation. US Dollar Index – Weekly Comments: Downtrending and may make new price lows Potential support at the 2005 low – if broken, few levels of support below Head and Shoulders pattern…
Rule Four of the Guiding Principles of Market Behavior states “Markets Alternate Between Expansion and Contraction”, meaning that there are a variety of trade ideas you can develop based on this principle. A weekly chart of Google (GOOG) illustrates this concept very nicely, with “Squeeze Plays” that could be entered with the volatility contraction easily…
I absolutely use Moving Average analysis in my trading, and – although there are hundreds of articles that address the topic – I found two recent posts in the blog world to be interesting to me. First, let me preface: Moving averages – like every other indicator – “work” because people respond to them, and…
Do you know the “whys” of how you trade? What I mean is, when you take a signal, do you consider why you are taking that signal? When you exit, do you know why you do so? On the surface, you might say “I enter when I perceive prices moving a certain direction, and I…