JMOT’s Blog is offering a series of free articles for trading beginners, and the most recent post is entitled “What Makes a Good Trading System?” For those just starting out in the world of trading, or those gripped by greed or fear, a personally developed trading system can help reduce the effects of these emotions,…
Martin Pring’s recent (2006) book The Investor’s Guide to Active Asset Allocation details one of the most complete explanations I have seen so far (in easy to understand format) regarding sector rotation, the business cycle, stock market cycle, money/portfolio management, intermarket relationships and many other concepts. Not only is the text a virtual reference manual…
The major story over the last month has been the impact of rising bond yields and their effect on the overall market. This updated chart from StockCharts.com provides a graphical representation of what has transpired over the month of June in terms of major market relationships: Interpretation: The Yield on the 10 Year Treasury Bond…
It was a wild week of trading, to say the least! I’m glad we made it to the weekend so we can pause and update our charts and catch a breath! Next week is expected to be a very low volume week because the 4th of July falls directly in the middle – on Wednesday! …
I wanted to highlight a blog and service some of you may not be aware of yet. Paul Castro is an author and investment director at Vestopia.com and he provides timely analysis on the market and news events, including his recent post “Tick-Tock” which is definitely worth consideration. In the post, Mr. Castro discusses various…
Stockbee posted a thought-provoking column entitled “What are Your Goals in Trading?” that addresses the age-old question, “Should I trade to be right or should I trade to make money?” At first glance, and to many new traders, it would seem these two concepts are irrelevant because you make money when you are right… don’t…
Chris Perruna recently posted on the topic of Position Sizing and Expectancy (as discussed in great detail by Dr. Van Tharp – book reference included in post). Attached are a few quotes from the post: Most traders look for three major factors when developing a system: How much to trade on each position The right…
I know it’s a question on everyone’s mind, especially if you are new to trading. “How Can I learn how to Trade?!” or something of the like. Dr. Steenbarger provided a brief post with links to other resources to help you get started on your journey, or help give direction to current travelers. He begins…
It’s rare when a particular moving average will capture (halt) the price action exactly, but these averages often serve as areas of support or resistance. Today’s action was no exception; in fact, the Dow tagged the 50 period MA and the Nasdaq ‘tagged’ the average almost to the penny before rallying sharply to close up…
Monday was an absolutely wild day for traders, with a large volatility price swing. As hectic as the trading day was, an interesting pattern emerged. The intraday low coincided with the rising 50 EMA and with the round number 13,300. This was a significant support area. The high of the day coincided with the flattening…