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Swing Trading Breakout Strategies

Fri, 1 Feb 2013 17:00:00 GMT

By Ken Calhoun -- Holding positions from several days to several weeks is known as swing trading and is one of the most popular styles of active trading for stocks and exchange-traded funds. Experienced active traders often look for strong momentum-based indicators and specific chart patterns to help identify how to enter these breakout patterns as they occur...

An Early Morning Review of 2012 When Trading the Spiders

Fri, 18 Jan 2013 17:00:00 GMT

By Anthony Trongone, Ph.D., CFP, CTA -- Despite strong gains last year, some early morning trading settings were unprofitable. Besides providing us with some performance strategies, early morning direction is often a good indicator of prevailing market sentiment of investors as they await the opening bell...

Intermarket Day Trading with eSignal LRCs - (Part 8 [new] of 19: Hot Money Tactics and LRC 2-Day Charts)

Fri, 11 Jan 2013 17:00:00 GMT

By Richard L. Muehlberg -- In day trading, detail and context are vital. A 1-day chart magnifies price action. Sudden intraday reversals show clearly, which can improve your decision-making speed. But, especially during volatile conditions, that same 1-day magnification can disorient you...

Trading On a High

Fri, 4 Jan 2013 17:00:00 GMT

By Anthony Trongone, PhD, CFP, CTA -- Given that the equities market is never stagnant; it provides the serious investor with plenty of opportunities. For instance, one situation worth investigating occurs when the market finishes the day with its closing price in the vicinity of its highest daily price...

An Elliott and Gann Efficient Time / Price Tool, Part 2 of 2

Fri, 28 Dec 2012 17:00:00 GMT

By Dr. Mircea Dologa, MD, CTA -- Most experienced traders have, in their trading arsenal, tools that use the time / price relationship. Less known and less assimilated by the public, the time factor should be understood, first as a stand-alone concept...

An Elliott and Gann Efficient Time / Price Tool, Part 1 of 2

Fri, 21 Dec 2012 17:00:00 GMT

By Dr. Mircea Dologa, MD, CTA -- The ellipse patterns were unknown to traders for many years until 1983, when Robert Fisher - a great teacher and trader (of www.fibotrader.com) - presented a series of seminars that introduced the PHI ellipse (Golden Ratio) concept, based on an oval pattern built via a height / width Fibonacci ratio relation. The term "length" was also used with this type of ellipse instead of "width"...

Rinse Jobs

Fri, 14 Dec 2012 17:00:00 GMT

By Alan Farley, founder and publisher of Hard Right Edge -- The rinse job denotes a sudden dislocation within a trading range, in which price thrusts above or below support / resistance and then reverses, closing back within the boundaries of the sideways pattern...

Using the Hikkake Pattern to Identify Long-Term Signals

Fri, 7 Dec 2012 17:00:00 GMT

By Daniel Chesler, CMT -- Chart patterns are generally categorized as either "reversal" or "continuation". Reversal patterns tend to mark the culmination of a price trend, especially major long-term trends. Continuation patterns tend to represent the short to medium-term pauses that occur in between the beginning and end points of trends...

How a Trader Can Use Scoring: Part 2, a Market Scoring Example

Fri, 30 Nov 2012 17:00:00 GMT

By Andrei Khomich, Ph.D., Head of R&D, Faunus Asset Management -- In Part 1 of this article, we discussed the history of scoring in the financial markets and, then, showed how this notion of scoring could be applied to trading. Now, let's take a closer look at what data will be of most use to us in using scoring to place trades...

Protecting Your Systems from Imminent Danger: Using eSignal's Set Alert Function

Fri, 23 Nov 2012 17:00:00 GMT

By Anthony Trongone, PhD, CFP, CTA -- Sometimes, the breakdown of one commodity can produce a sudden loss in another commodity. When this occurs, it can render a perfectly good trading system completely meaningless. This discussion focuses on two separate trading issues...

Spread Trading, the Alternative Trading Strategy

Fri, 16 Nov 2012 17:00:00 GMT

By Jay Richards -- Spread trading has been around since markets and exchanges were first developed. Exchanges and their markets were designed, not for speculation, but to transfer risk from one party to another; speculation made them more efficient through increased volume and tighter price spreads (bid / ask)...

How a Trader Can Use Scoring: Part 1, an Introduction

Fri, 9 Nov 2012 17:00:00 GMT

By Andrei Khomich, Ph.D., Head of R&D, Faunus Asset Management -- Scoring originated in the banking sphere. People in the banking sector often refer to "credit scores". But, the application of scoring is not limited to banking activities...

Buying and Selling: Working with Order Types

Fri, 2 Nov 2012 16:00:00 GMT

By Duane Gott, eSignal Learning Trader-Instructor -- Not too long ago, traders were quite limited in the way they placed their orders; they could either buy or sell a stock. This is about as basic as one can get when we talk about placing our trades on the open market...

Basics of Currency Trading: The Institutional Forex Market

Fri, 26 Oct 2012 16:00:00 GMT

By Duane Gott, eSignal Learning Trader-Instructor -- In our final exploration in this three-part series, we will take a look at the Forex market from an institutional perspective. While the first two articles in this series have focused on the proprietary Forex trader, we'll begin to examine how banks and other financial institutions handle the price swings within the currency marketplace...

Understanding Stocks

Fri, 19 Oct 2012 16:00:00 GMT

By Duane Gott, eSignal Learning Trader-Instructor -- Most of us have a pretty good understanding of what a stock is, but many people don't realize that there are different types of stocks; each with its own set of unique characteristics...

Understanding Options

Fri, 12 Oct 2012 16:00:00 GMT

By Duane Gott, eSignal Learning Trader-Instructor -- Options, or derivatives as they are sometimes called, are a complex, yet highly profitable trading instrument available in many of today's stock and commodity markets...

Understanding Futures

Fri, 5 Oct 2012 16:00:00 GMT

By Duane Gott, eSignal Learning Trader-Instructor -- For many traders and investors, the futures market can be a bit of a mystery. This article covers some of the basics of the futures markets -- how they work, types of commodities that are traded and some of the details that are unique to this asset class...

The Lost Art of Point & Figure Charting

Fri, 28 Sep 2012 16:00:00 GMT

By Jay Richards and Rob Clayton (Technical Analyst at GTL Tradeup) -- In the 1890s, Charles Dow was studying share price movement and observed that the people who really made the money were the insiders (i.e., people who worked at the [listed] company). He also noted that the speculators and traders were missing large percentages of each price swing...

Support and Resistance in the Forex Market

Fri, 21 Sep 2012 16:00:00 GMT

By Christopher Weaver -- In a world of fancy trading indicators, it is sometimes easy to forget about one of the most basic but effective concepts of all time -- support and resistance...

Technical Indicators Work on All Asset Classes

Fri, 14 Sep 2012 16:00:00 GMT

By Chris Mercer, Founder and President, Tradesight.com -- As traders, we are always looking for new tools to put in our "Trader's Toolbelt". Trading isn't about having just one tool and using it all day long. We need a variety of information that can be used together to give us the best chances of success...

Basics of Currency Trading: The Life of a Typical Forex Trade

Fri, 7 Sep 2012 16:00:00 GMT

By Duane Gott, eSignal Learning Trader-Instructor -- In this article in the Basics of Currency Trading series, we will be taking a look at the life of a typical Forex trade to see how the trader can use the power of margin to capitalize on technical and fundamental changes in the currency marketplace...

Basics of Currency Trading: An Overview of Forex

Fri, 31 Aug 2012 16:00:00 GMT

By Duane Gott, eSignal Learning Trader-Instructor -- This is the first of three articles that will explore the basics of currency trading, taking a look at the Forex market in detail and the world of currency arbitrage...

Trading Spot Cash Markets versus Futures Markets

Fri, 24 Aug 2012 16:00:00 GMT

By Ron Wheeler, eSignal Learning Trader-Instructor -- Currency traders today have a distinct advantage when it comes to choosing and placing their trades because of the opportunities that both the cash spot markets and the futures markets can provide...

Swing Trading Breakout Strategies

Fri, 17 Aug 2012 16:00:00 GMT

By Ken Calhoun -- Holding positions from several days to several weeks is known as swing trading and is one of the most popular styles of active trading for stocks and exchange-traded funds...

Introduction to IPOs

Fri, 10 Aug 2012 16:00:00 GMT

By John Devcic -- Certain terms used on Wall Street elicit instant excitement among investors and traders. One is the Initial Public Offering (IPO). The more famous privately held companies deciding to go public for the first time usually garner the most anticipation and interest among investors both large and small...

Stuck in Purgatory

Fri, 3 Aug 2012 16:00:00 GMT

By Adrienne Toghraie, Trader's Success Coach at TradingOnTarget.com -- Are you stuck in a place or condition of temporal punishment that you have inflicted on yourself because you are not willing to overcome the self-sabotage that is holding you back from becoming a successful trader? If you are, you are in a place I call trader purgatory...

Shutting Down

Fri, 27 Jul 2012 16:00:00 GMT

By Adrienne Toghraie, Trader's Success Coach at TradingOnTarget.com -- Everyone handles upsets in various ways. Although all negative reactions can be damaging to your profits, shutting down is...

Exit Strategies

Fri, 20 Jul 2012 16:00:00 GMT

By Alan Farley, founder and publisher of Hard Right Edge -- There are three basic reasons we exit our positions; that is, to: Book profits, Take losses, Respond to a change in market character. Each reason demands multiple strategies to manage the unique attributes of that particular scenario.

Keeping on the Trader's Path

Fri, 13 Jul 2012 16:00:00 GMT

By Adrienne Toghraie, Trader's Success Coach at TradingOnTarget.com -- What does it take for you to keep on the path toward your goals? Ultimately, it comes down to you making a choice and sticking with it.

Finding Direction in Your Market

Fri, 6 Jul 2012 16:00:00 GMT

By Jim Shane, President, TurnSignal Inc. -- Financial markets change direction all the time. Traders view these directional changes using different timeframes: Slow timeframes smooth out the changes, and fast timeframes magnify them. The place in the market movement where the direction has clearly changed will give you a starting point for creating an entry point for a trade with a better chance of a positive result.

Trading Wolfe Waves (Part 2 of 2)

Fri, 29 Jun 2012 16:00:00 GMT

By Dr. Mircea Dologa, MD, CTA -- We have written about both Elliott Waves and Wolfe Waves in Part 1 of this article, "Trading Elliott Waves or Wolfe Waves? ". In this article, we will try to explain the Wolfe waves trading approach.

Education and Support for Trading Success

Fri, 22 Jun 2012 16:00:00 GMT

By Bennett A. McDowell -- Getting a good education will build the foundation you need to perform well in the markets. This education will come from many areas in your life, not only from trading. It will come from your life experiences, as well as your trading experiences, and all of this will play an important role in your trading success.

Trading Elliott Waves or Wolfe Waves? (Part 1 of 2)

Fri, 15 Jun 2012 16:00:00 GMT

By Dr. Mircea Dologa, MD, CTA -- Is there any order in the labyrinth of financial chaos...? This question has perturbed generations of academic scholars, as well as practicing traders. We have seen so far, in our previously published articles included in eSignal's weekly trading education article series, how geometry plays a vital role in trading through the use of pitchforks, channels, Gann or geometric angle lines, orthodox and unorthodox trend lines.

Using Futures as an Indicator

Fri, 8 Jun 2012 16:00:00 GMT

By Tom Busby, Founder and CEO of DTITrader.com -- By now, most people who pay attention to the financial markets realize that what happens in Asia and Europe will affect our market here in the U.S. How many times have we awakened in the morning to hear CNBC or Bloomberg telling us that the European markets are down 2 percent, that futures are pointing to a lower open, and that markets are below fair value?

Small Caps: Rubbing against Resistance (Part 2 of 2)

Fri, 1 Jun 2012 16:00:00 GMT

By Anthony Trongone, Ph.D., CFP, CTA -- Although the more popular index funds are trading below historical resistance, the small caps (Russell 2000) recently broke past their previous (2007) price barrier (as of the first writing of this article). Because of this success, however, they are struggling to surpass their 2011 record closing price.

Caution: Resistance Ahead? (Part 1 of 2)

Fri, 25 May 2012 16:00:00 GMT

By Anthony Trongone, Ph.D., CFP, CTA -- Sometimes, a meltdown in the equities market occurs because of unfavorable economic news or random shocks to the environment. These corrections are uncontrollable; therefore, getting caught in one of them comes with the playing field. There are, however, more destructive aspects of trading, such as not spotting the onset of a correction because our instrument is within the vicinity of previous resistance.

Understanding the Fractal Nature of Markets

Fri, 18 May 2012 16:00:00 GMT

By Jay Norris -- There certainly are no guarantees when it comes to defining market movement, but we can tell you that one of the most interesting things a trader can ponder is the philosophy that a market is fractal in nature, in the sum of the parts (think smaller time frame moves equal the whole -- larger time frame moves -- and those parts are scaled replications of the whole and of each other)...

The Importance of Role Models for Traders

Fri, 11 May 2012 16:00:00 GMT

By Adrienne Toghraie, Trader's Success Coach at TradingOnTarget.com -- In working with some of the most successful traders over the years, I have found that the greatest contributor to their success is the exceptional role models they have emulated. It is also true that many traders have been enticed by someone who does not have their best interest at heart, which results in their not realizing their full potential...

Gaining a Trading Edge by Thinking a Few Steps Ahead

Fri, 4 May 2012 16:00:00 GMT

By Alexander Paul Morris of tymoraPRO.com -- In late 2011, once the market bounced off its early October lows, there was increasing chatter over how it was probably too early for a real full-blown European debt crisis at that point and how the "powers that be" would likely run the market higher into the new year...

Glass Half Full or Half Empty

Fri, 27 Apr 2012 16:00:00 GMT

By Anthony Trongone, PhD., CFP, CTA -- Despite your findings, do your trading decisions have you leaning in the same direction? For instance, the chart provided below has a 20-6 record with $18.03 profit; however, do you go against this positive outcome simply because you have a psychological orientation toward going against market momentum?...

How to Trade Cup and Candle Breakouts

Fri, 20 Apr 2012 16:00:00 GMT

By Ken Calhoun -- Experienced breakout traders know that the strongest entries are often found by combining multiple trading signals to define entry price points. Using popular candlestick patterns, such as hammers and shooting stars, combined with cup breakout patterns, can provide strong entries for breakout trading opportunities...

The Hikkake Pattern

Fri, 13 Apr 2012 16:00:00 GMT

By Daniel Chesler, CMT -- When market activity declines and trader conviction wanes, the outcome is visible on price charts in the form of a trading range. Trading ranges often take on a definable shape. For example, traditional "head-and-shoulders", "triangles", and other well known technical patterns normally occur during the transitions between trending price action...

Follow the Money with an ECN Book

Fri, 6 Apr 2012 16:00:00 GMT

By Fausto Pugliese -- Many new traders make the mistake of thinking Level II is the only trading tool they need to tackle the markets.

Level II is a wonderful tool. But, if you really want to grasp what's going on with the markets and get the most of your trading, you should couple Level II with a subscription to an electronic communication network (ECN)...

The Power of Momentum

Fri, 30 Mar 2012 16:00:00 GMT

By Jim Shane, President, TurnSignal Inc. -- The nature of financial markets is that they move up and down, constantly turning back on themselves. Traders buy and sell, moving markets up and down, setting stops to protect their positions and, in the process, turning markets in reverse. If you can find a place in the market movement where momentum is on your side, you will often have a better chance of entering a trade with a positive result.

How to Make Money in the Markets Using Swing Analysis

Fri, 23 Mar 2012 16:00:00 GMT

By Alan Farley, founder and publisher of Hard Right Edge -- It's tough to make money if you don't know where the price swing began, how far it might carry, and when it's finally over and giving way to a new swing in the opposite direction. Every aspect of your trade, including holding period and reward:risk profile, is dependent on the size of the swing.

My 10 Steps to Finding Winning Trades

Fri, 16 Mar 2012 16:00:00 GMT

By Dan Zanger -- One thing about the market is that, no matter how long you've been trading, there are new lessons to be learned in every trade. Some lessons are positive, such as when you log a winner and look back on where you went right. Others, such as analyzing a trade that cost you money, aren't as much fun but can be more valuable. Win or lose, the market is always schooling you.

Managing Your Money Is Serious Business

Fri, 9 Mar 2012 17:00:00 GMT

By Bennett McDowell, Founder, President and CEO, TradersCoach.com -- Often we, as a society, are so focused on the day-to-day job of earning a living that we forget the fact that managing our overall finances is important business. It is just as important as our day job. We can get in a rut and, without even realizing it, become like hamsters on a treadmill.

The 7 Biggest Mistakes Most Traders Make

Fri, 2 Mar 2012 17:00:00 GMT

By Tom Busby, Founder and CEO of DTITrader.com -- Three decades as a trader have given me valuable market insights, including considerable knowledge about the kinds of mistakes that can get a trader into trouble.

The Mysteries of Trader Tax Status Revealed

Fri, 24 Feb 2012 17:00:00 GMT

By Jim Crimmins of Traders Accounting -- Just because you call yourself a securities trader doesn't make you one in the eyes of the Internal Revenue Service.

Depressed, Weak, Complaining, Angry: How to Avoid Trading Negativity

Fri, 17 Feb 2012 17:00:00 GMT

By Adrienne Toghraie, Trader's Success Coach, TradingOnTarget.com -- The markets feed off depressed, weak, complaining and / or angry people. Then it becomes a double whammy when those surrounding a trader have to experience these emotions. Often, they give the trader a negative response that adds to the dynamics of the negative environment.

Trading Elliott Waves with the Regression Trend Channel and the Count Back Line

Fri, 10 Feb 2012 17:00:00 GMT

By Dr. Mircea Dologa, MD, CTA -- Trading Elliott waves seems to be an anguishing experience for many uninitiated traders. It shouldn't be so hard! The reality is that any trader can trade these waves.

The Amazing Forecasting Ability of the Extended 5th Wave in Elliott Wave Analysis (Part 2 in a 4-Part Elliott Wave Series)

Fri, 3 Feb 2012 17:00:00 GMT

By Todd Krueger -- This is the second part in a multipart series of articles designed to highlight some very unique but under-used tendencies of the Elliott Wave methodology. As stated in the previous article, this series of articles is aimed at the more advanced trader.

Intermarket Day Trading with eSignal LRCs (Part 9 of 19: Hot Money Tactics and LRC 11-Day Charts)

Fri, 27 Jan 2012 17:00:00 GMT

By Richard L. Muehlberg of DayTradingWithLinesInTheSky.com -- Remember what you are trying to do as a lines trader. You are trying to shift your money to each day's "best, cleanest" (hottest) trade(s). You may be long or short one market or sector one day, then long or short another market or sector another day.

Some Rules for the Trader to Start Off the New Year

Fri, 20 Jan 2012 17:00:00 GMT

By Teresa Lo -- In keeping with the spirit of New Year's resolutions and putting your best foot forward, traders will appreciate these two lists. They share a common theme in that they support a trader's desire to remain a market participant for the long haul. Happy New Year and Trading Success!.

Take the First Step toward Becoming a More Disciplined Trader!

Fri, 13 Jan 2012 17:00:00 GMT

By Fausto Pugliese -- In my experience teaching thousands of individuals to day trade, I've found that the ultimate determining factor in success is not experience, analytical ability or risk tolerance. The secret ingredient in 99 percent of trading success stories is discipline.

Trading Indicators -- A View inside the Market's Movement

Fri, 6 Jan 2012 17:00:00 GMT

By Jim Shane, President, TurnSignal Inc. -- Trading is easy. All you need is a computer, a charting service and a brokerage account to fulfill your dreams. Right?

When and Where Time Meets Price through Pitchfork Analysis: A Little-Known Trading Technique!

Fri, 30 Dec 2011 17:00:00 GMT

By Dr. Mircea Dologa, MD, CTA -- Although it was used for the first time by Dr. Alan H. Andrews in the 1960s, the charting instrument known as the pitchfork hadn't yet begun to perform to its fullest ability to do so. But, in the last 20 years, it has been used in profitable trading techniques.

Using Fibonacci Retracements to Define Consolidation

Fri, 23 Dec 2011 17:00:00 GMT

By Mark Braun -- Let's take a look at this daily chart of February YG, the NYSE-Liffe mini gold contract. You can see just by glancing at the chart that this is consolidating with a pattern of higher lows and lower highs.

The Top 10% -- Getting There, Staying There

Fri, 16 Dec 2011 17:00:00 GMT

By Roger Felton, President of Felton Trading and developer of DivPro -- Remember the movie, "Butch Cassidy and the Sundance Kid", where Paul Newman kept asking, "Who are those guys?" Had he been a trader, he might very well have asked the same thing about the mysterious group of elite traders known as the Top Ten Percent (of the world's traders).

Intermarket Day Trading with eSignal LRCs (Part 8 of 19: Hot-Money Tactics and LRC 2-Day Charts)

Fri, 9 Dec 2011 17:00:00 GMT

By Richard L. Muehlberg of DayTradingWithLinesInTheSky.com -- The 2-day chart provided below (Figure 1) for the S&P 500 index perpetual futures contract shows a bull channel. The far left of the chart shows the 00:00 time line for November 7, 2011. The center of the chart shows the 00:00 timeline for November 8.

I Demand That This Crazy Market Pay Me Cash Immediately...

Fri, 2 Dec 2011 17:00:00 GMT

By Lee Lowell, editor of the Instant Money Trader newsletter for The White Cap Research Group -- With the Dow down as much as 2,320 points since July 21 (as of the first writing of this article in early October 2011), and all the unfavorable news overhanging the United States and Europe, one might be a little wary of buying stocks.

So, You Want to Be a Day Trader

Fri, 25 Nov 2011 17:00:00 GMT

By Jamie Leach, CEO and co-founder of pacificwealthcreations.com -- We have all seen the Hollywood movies - Boiler Room, Wall Street, Trading Places. They entice with the lure of adrenalin and the promise of instant gratification that only mastering the markets can bring. They make it seem so simple. Buy, Sell, Buy, Sell - the frenetic activity of ticker symbols mixed with colorful technical indicators.

How to Locate and Trade an Extended Move

Fri, 18 Nov 2011 17:00:00 GMT

By Nicholas Santiago of InTheMoneyStocks.com -- Sometimes, stocks will break out or break down in a very sharp and steep angle on the charts. These types of patterns are often referred to as a parabolic move when they surge to the up side. When these patterns occur to the down side, they are sometimes called a falling knife or waterfall decline.

Capitalizing on Continuation Patterns

Fri, 11 Nov 2011 17:00:00 GMT

By Sinisa Persich, TraderHR.com -- Technical analysts seek to identify and capitalize on patterns, or tendencies, in stock charts. Of particular interest to me is the tendency of stocks to continue trends, either up or down.

What I Look for in a Technical Analysis Tool

Fri, 4 Nov 2011 16:00:00 GMT

By Chris Mercer, Founder and President of Tradesight.com -- For me, trading is more than just a hobby; it's an integral part of my life. I chose a career in trading early on and have worked hard at it ever since. Over two decades, I've learned how to use unique measurements of the market. This learning process has put me in a position to understand a variety of technical tools that have allowed me to succeed as an independent trader.

The Fibonacci .786 Retracement: Doorway to Targets

Fri, 28 Oct 2011 16:00:00 GMT

By Mark Braun -- Each Fibonacci retracement has a specific meaning, and some retracements are more important than others. In this article, we'll focus on the key .786 retracement and the corresponding 1.272 target extension, or external retracement.

Intermarket Day Trading with eSignal LRCs (Part 7 of 19: Hot-Money Tactics and LRC 1-Day Charts)

Fri, 21 Oct 2011 16:00:00 GMT

By Richard L. Muehlberg of DayTradingWithLinesInTheSky.com -- 1-day linear regression channels can be volatile. They can also be exceptional guides. Be careful with a wide linear regression channel: It can be traded but can also present bull and bear traps. Stay agile when trading a wide channel. A narrow channel is best: It acts as a visual cue to a run's intensity...to its "heat". Shift your money to a narrow channel...to the day's "hottest" opportunity.

A Strategy That Never Fails

Fri, 14 Oct 2011 16:00:00 GMT

By Tom Busby -- Wouldn't it be great if we all had a strategy that never failed? This strategy would be one that, every time you entered, there was not a probability of success but a certainty. It is nice to dream, but I am here to tell you that this so-called "no-fail strategy" does not exist. If it did, instead of calling it "trading", we would simply call it "profiting".

The Circumscribed Objective

Fri, 7 Oct 2011 16:00:00 GMT

By Ross L. Beck, FCSI, author of The Gartley Trading Method: New Techniques to Profit from the Market's Most Powerful Formation -- The monad, according to the Greek philosophers, was the beginning of all things. It was often represented as a dimensionless point in time and space. As traders, we can think of the monad as the beginning of a series of events that unfold at the start of an impulsive phase in the market. It is only when the monad moves that a dimension is created.

Practice Makes Improvement

Fri, 30 Sep 2011 16:00:00 GMT

By Fausto Pugliese, founder and CEO of CyberTrading University -- In a very familiar old joke, one gentleman asks another, "How do you get to Carnegie Hall?" The second gentleman responds, "Practice." I believe the same advice applies to the person who asks how to become a successful day trader.

Protecting Your Wealth with Options

Fri, 23 Sep 2011 16:00:00 GMT

By Jamie Leach of pacificwealthcreations.com -- In times of extreme volatility and uncertainty, sleep deprivation goes hand in hand with perceived longevity in the markets. The equilibrium between risk and reward becomes distorted, with the primary fear of loss urging many investors to withdraw from the markets. For those experienced, grey-haired investors, the ability to ride out the storm becomes an uneasy necessity.

How to Identify Institutional Gaps

Fri, 16 Sep 2011 16:00:00 GMT

By Nicholas Santiago of InTheMoneyStocks.com -- Many traders look at the morning gaps and wonder how they can play the move. Often, novice traders and investors will simply buy every gap higher that they see. Most often, they will believe that the gap higher is always a breakout, and the stock will continue to rally.

Of Breakouts and Whipsaws

Fri, 9 Sep 2011 16:00:00 GMT

By Alan Farley, founder and publisher of
Hard Right Edge -- Traders encounter whipsaws, fakeouts and false breakouts throughout their careers. They shouldn't be surprised, though, because all we're doing is playing an odds game, and even a perfect trade setup can fall apart for no reason -- and with little warning.

To Trade or Not to Trade...That Is the Question

Fri, 2 Sep 2011 16:00:00 GMT

By Sunny J. Harris -- The stock broker's credo resounds in my ears: "Just buy and hold. That's all that works for the long term." Average in by buying when the market is down. Average in by adding to your portfolio on a regular monthly schedule, regardless of what the market is doing.

Directional Lines and How They Can Help You Keep Track of the Trend

Fri, 26 Aug 2011 16:00:00 GMT

By Jay Norris, Principal, Clovernest Financial Group, Chicago -- We originally designed directional lines to help the trader know whether a signal or trigger is a "trend trade" (that is, it's going in the same direction as the higher time frame trends) or a "counter-trend trade", which would be going against the next higher timeframe trend. They are an excellent tool for keeping track of the trends on the different timeframes, without having to switch back and forth between charts, and they mark what we call a "change-of-direction".

Day Trading Rule #1: No Overnights - Period

Fri, 19 Aug 2011 16:00:00 GMT

By Fausto Pugliese, founder and CEO of CyberTrading University -- Did you know that the biggest reason for failure among day traders is the holding of positions overnight? It's true. I've seen the destruction it can cause time and time again. And, it's why I stress to my students to close their positions every night.

How the Dow Jones Industrial Average Works

Fri, 12 Aug 2011 16:00:00 GMT

By Alexander Paul Morris of tymoraPRO.com -- After speaking with many traders and investors over the years, I find it rather surprising how many of them have almost no clue how the Dow Jones Industrial Average ($INDU) really works or even less how it is calculated.

A Reliable Edge in Trading

Fri, 5 Aug 2011 16:00:00 GMT

By Ken W. Chow, Mentor, Pacific Trading Academy -- All traders need to figure out a couple of key points when looking for profitable trading opportunities. These two points allow you to find the right strategies that put the probability tremendously in your favor. This is critical if you rely solely on chart reading to give you that reliable edge.

Technical Analysis versus Trading Strategy - The Crucial Difference

Fri, 29 Jul 2011 16:00:00 GMT

By Nick McDonald, Managing Director and Head Trader, TradewithPrecision.com -- Ponder this question for a moment: What is the difference between technical analysis and trading strategy? Many traders do not recognize the difference. More than likely, they are among the many technical traders out there struggling to find the perfect technical indicator or pattern that will work for them.

An Introduction to Bottom Fishing

Fri, 22 Jul 2011 16:00:00 GMT

By John Devcic -- Whenever there is a sustained down period in the market, one of the first things you are likely to hear investors talk about is bottom fishing. In bear markets or in general, when the market has gone down for a period of time, certain stocks will be taken down to a lower level than they deserve to go.

The Amazing Forecasting Ability of the Corrective A Wave in Elliott Wave Analysis (Part 1 in a Series on Elliott Wave Methodology)

Fri, 15 Jul 2011 16:00:00 GMT

By Todd Krueger -- This is the first in a multi part series of articles designed to highlight some very unique but underused attributes of Elliott Wave methodology. Because of the complexity of the Elliott Wave method, this series of articles is aimed at the more advanced trader.

Identifying Targets Using Fibonacci Extensions and Retracements

Fri, 8 Jul 2011 16:00:00 GMT

By Dean Rogers, Senior Analyst at Kase and Company, Inc. -- Fibonacci extensions and retracements are powerful tools that assist traders and analysts in identifying crucial support and resistance targets. These targets not only help traders know when a potential reversal may occur but also help them know whether they are trading with or against the prevailing trend, and most importantly, when the trend has changed.

Trading the Precious Metals: Is Silver a Highly Profitable Market?

Fri, 1 Jul 2011 16:00:00 GMT

By Dr. Mircea Dologa, Commodity Trading Adviser -- I have been asked many times by my students... How can we grow old in this profession? What would be the most profitable security to trade? How should it be approached?

Swing Trading 15-Day Breakouts and Pivots: How to Swing Trade Using eSignal

Fri, 24 Jun 2011 16:00:00 GMT

By Ken Calhoun, founder of DaytradingUniversity.com -- Using eSignal's charts for swing trading breakouts and pivots can be a powerful trading strategy for active stock, ETF and Forex traders. Looking for strong trade moves by spotting specific trading patterns (such as cups and high-volume reversals) is made easiest using a 15-minute candlestick chart.

An Introduction to Mini-Sized Futures Contracts

Fri, 17 Jun 2011 16:00:00 GMT

By John Devcic -- Mini futures contracts are not new. From 1868 to 2003, The MidAmerican Commodities Exchange offered contracts that were 1/5th the size of standard commodities contracts. These smaller contracts became the proving ground for some of the best futures traders in the world. These smaller-sized contracts allowed traders to start off with less up-front money.

Intermarket Day Trading with eSignal LRCs (Part 6 of 19: Fractal Charting and Multiple Levels of Observation)

Fri, 10 Jun 2011 16:00:00 GMT

By Richard L. Muehlberg of DayTradingWithLinesInTheSky.com -- SUMMARY: LRCs have their weaknesses. To help overcome those weaknesses, it is critical to use the right combination of LRCs.

The Value of Long-Term Charts

Fri, 3 Jun 2011 16:00:00 GMT

By Daniel Chesler, CMT, of Chesler Analytics -- When assessing the likely future direction of a market, most traders gravitate toward shorter-time-frame charts, such as daily, hourly and 5-minute interval charts. Shorter-term analysis and studies also seem to grab the lion's share of attention in popular trading books, seminars, articles and software products. One possible explanation for this tendency is the (very human) desire among traders for quick gratification.

How Do I Make Money in the Markets?

Fri, 27 May 2011 16:00:00 GMT

By Volatility Vixen, www.Derivatives Bootcamp.com -- "And, finally, the half-strength latte with two sugars?" the waiter queries with a smile. My colleague waits patiently until our kindly assistant barista has moved a distance away from our table. "I need your advice. May I ask a silly question?"

Using a Put Selling Strategy: A Step-By-Step Lesson on Selling Options

Fri, 20 May 2011 16:00:00 GMT

By Lee Lowell, Advisory Panelist and Stock and Commodity Option Specialist -- Let's say you've been interested in buying Microsoft stock, and you feel $20 is a good price to pick up some shares. And, suppose it currently trades at $23.50 per share, so you'll need it to fall in price a bit before getting filled on the trade.

Three Questions for an Optimal Tool: Integrated Pitchfork Analysis

Fri, 13 May 2011 16:00:00 GMT

By Dr. Mircea Dologa, MD, CTA -- What was the driving force behind my writing the trilogy of "Integrated Pitchfork Analysis"?

Looking Back at Chart Pattern Recognition

Fri, 6 May 2011 16:00:00 GMT

By Anthony Trongone, Ph.D., CFP, CTA -- As one of the presenters at this year's New York Trading Expo, I had the opportunity to listen to active traders. During my presentation, I put this slide on the screen, asking them for their outlook on the short-term direction of gold.

Exploiting Emotional Traders

Fri, 29 Apr 2011 16:00:00 GMT

By Kerry Szymanski -- Most of us realize that emotion has no place in trading or investing. An emotional trader is likely to act impulsively and make trading errors. Seasoned traders realize the error in this approach and understand that, in all time frames, there are points at which neophyte traders are clearly operating out of strong emotion, whether it be fear or greed.

Navigating through a Stormy Market Down Turn

Fri, 22 Apr 2011 16:00:00 GMT

By Anthony Trongone, Ph.D., CFP, CTA -- With the latest market shakedown (as of the first writing of this article in March), it was difficult to step away from your trading station.

Put Option Credit Spreads: Three Ways to Win -- and an 80 Percent Chance of Success

Fri, 15 Apr 2011 16:00:00 GMT

By Lee Lowell, Stock and Commodity Option Specialist -- When the stock market behaves erratically and volatility is the order of the day (as it was at the first writing of this article in August 2010), what can you do to combat the upheaval?

Trade Orders 101

Fri, 8 Apr 2011 16:00:00 GMT

By John Devcic -- Different types of orders should be used in different circumstances. Orders should be looked at as another tool that traders and self-directed investors can use to help them make better trades. This article will focus on the types of orders you have at your disposal.

Hot Tips Won't Make You Rich

Fri, 1 Apr 2011 16:00:00 GMT

By Volatility Vixen, www.Derivatives Bootcamp.com -- Okay, be honest. Throughout your trading life, you've received a hot tip at some time or another. Sometimes, the tip is delivered by a cab driver; sometimes it's your family doctor. Of course, there's always a hot tip to be had around the office water cooler or from a well-meaning family member at a get-together.

Trend Mirrors

Fri, 25 Mar 2011 16:00:00 GMT

By Alan Farley, founder and publisher of Hard Right Edge -- Price remembers. Past encounters between bulls and bears leave their mark on the charting landscape, long after the battles have come to an end.

Intermarket Day Trading with eSignal LRCs (Part 5 of 19: Good Day Trading Is Good Trend Trading)

Fri, 18 Mar 2011 16:00:00 GMT

By Richard L. Muehlberg of DayTradingWithLinesInTheSky.com -- To maintain situational awareness as a day trader, you should simultaneously keep aware of the bigger and smaller technical picture. You should look at 3-month charts and even 6-month charts alongside your 1-day charts.

The Baltic Dry Index: An Ideal Tool for Signaling the End of a Crisis

Fri, 11 Mar 2011 16:00:00 GMT

By Dr. Mircea Dologa, MD, CTA -- Paris, France -- How many times have investors or even traders wished they had a tool capable of signaling the precise timing of a market reversal, a tool that would draw a clear separation line between a bull market and a bear market? Well... it could be that the Baltic Dry Index -- BDI for short -- is one of those precious tools, the so-called Leading Economic Indicators!

Dogs of the Dow

Fri, 4 Mar 2011 17:00:00 GMT

By John Devcic -- Blue chip stocks are the perceived best of the bunch on Wall Street. Investing in them is usually a smart decision. Of the blue chip stocks, you have the elite.

Philosophy for Success for the Active Trader

Fri, 25 Feb 2011 17:00:00 GMT

By Anthony Trongone, PhD, CFP, CTA -- Many investors believe the way to become successful is to incorporate the "perfect system" into their trading day. This is analogous to individuals with no cooking experience believing that they can become a master chef once they find the right recipe.

Day Traders, Never Leave Your Computer

Fri, 18 Feb 2011 17:00:00 GMT

By Fausto Pugliese -- Let's say you're on a bus. In the middle of the route, the driver stops the bus, stretches his legs, makes a few calls on his cell phone and sips a cup of coffee.

Insights to Identifying Potentially Lasting Market Bottoms

Fri, 11 Feb 2011 17:00:00 GMT

By Alexander Paul Morris of www.tymoraPRO.com -- In February of 2009, with the markets plunging relentlessly day after day, after day... I still recall how many traders were waiting in anticipation for some sort of crazy, panicky, high-volume day to mark a capitulation bottom.

The Art of Professional Trading during Tumultuous Times, Part II

Fri, 4 Feb 2011 17:00:00 GMT

By Dr. Mircea Dologa, MD, CTA -- Paris, France -- If, a "flash in the pan" (a volatile Dow bar without adequate volume) is validated, and the Dow Industrial index retraces below the 11,258 cluster zone (remember that we are calling this "Cluster B") on a closing basis, we can safely say that the short-term interventionist Fed policy has lost a great deal of its initial momentum -- if not the entire momentum.

The Art of Professional Trading during Tumultuous Times, Part I

Fri, 28 Jan 2011 17:00:00 GMT

By Dr. Mircea Dologa, MD, CTA -- Paris, France -- Before getting straight to the main topic of discussion of this two-part article, I will present, briefly, my view of the current international economic situation, focusing on the U.S. economy and, then, provide an abridged description of the two types of market analysis used in my study

Using Gold Futures as a Hedge against a Falling Equities Market

Fri, 21 Jan 2011 17:00:00 GMT

By Anthony Trongone, PhD, CFP, CTA -- A question we might ask that goes contrary to the thinking of goldbugs is this: Is buying this precious metal actually an effective means of recovering some of your losses when the equities market suffers a strong down turn?

Catastrophes Make for Opportunities

Fri, 14 Jan 2011 17:00:00 GMT

By Fausto Pugliese -- Did you know that the most money I've made in the markets has occurred right after some sort of major market upheaval?

It's How You Play the Game

Fri, 7 Jan 2011 17:00:00 GMT

By Kerry Szymanski -- An expression that most of us remember from our childhood is, "It's not whether you win or lose; it's how you play the game." The underlying message is an important one for children to understand. As we get older, however, we're more likely to prefer the adage, "Winning isn't the only thing; it's everything."

The Humble, Yet Powerful, Stochastics Indicator

Fri, 31 Dec 2010 17:00:00 GMT

I'm a pattern guy who's comfortable trading triangles, double tops and all the other debris found on the charting landscape. But, I've let a few key indicators slip into my daily analysis over the years.

Follow the Money with an ECN Book

Fri, 24 Dec 2010 17:00:00 GMT

Many new traders make the mistake of thinking Level II is the only trading tool they need to tackle the markets.

Intermarket Day Trading with eSignal LRCs - Part 4 of 19: What "Helmet Kill" Can Teach Traders

Fri, 17 Dec 2010 17:00:00 GMT

A nickname for a day trader is a "shooter". When you trade, you shoot. Every time you trade, one of two things happens: 1) you shoot and make money; 2) you shoot and lose money.

A Trader's Obituary

Fri, 10 Dec 2010 17:00:00 GMT

It is a sad but simple truth that most people fail at trading the markets for a variety of reasons. Failure to research, formulate and follow a good trading plan is a common theme as is the inability to control emotions. Undercapitalization and unrealistic expectations are two more.

Investors versus Speculators

Fri, 3 Dec 2010 17:00:00 GMT

The age old battle on Wall Street has raged for decades. A particular strategy and investment philosophy can be in one moment and out just as quickly.

The Rise of the Traderette

Fri, 26 Nov 2010 17:00:00 GMT

For years now, I have pondered the question of why there are so few women in trading. Throughout my career in finance and the markets, I have certainly observed, collaborated with and taught a growing number of talented and dedicated female traders.

Day Trading E-mini Stock Index Futures

Fri, 19 Nov 2010 17:00:00 GMT

I began trading stock index futures in 1996 after nine years of trading stocks professionally in the investment industry. And, I still had my head handed to me -- at the beginning.

Volume Matters

Fri, 12 Nov 2010 17:00:00 GMT

Volume represents the number of shares or contracts transacted over a given period in a security or instrument.

A Basic Understanding of the Forex Markets

Fri, 5 Nov 2010 16:00:00 GMT

A few weeks back, I wrote an article that compared the Spot Forex market to the Forex futures. It recently dawned on me that the piece was really written to an audience that already has some knowledge of Forex.

The USD Approaches Freefall

Fri, 29 Oct 2010 16:00:00 GMT

In early October, the US Dollar fell against major currencies across the globe. In Australia, Japan and Europe, many stunned bankers and market participants eagerly watched multi-year highs smashed as their own currencies surged ahead of the US Dollar.

An Introduction to the Relative Strength Index

Fri, 22 Oct 2010 16:00:00 GMT

In a June 1978 article that appeared in Commodities magazine, J. Welles Wilder introduced the world to his creation -- the Relative Strength Index, or RSI for short. The article was expanded into J. Welles Wilder's book, New Concepts in Technical Trading Systems, published in1978. The book went into the specifics, such as calculations, use and the necessary signals to look for.

Some Things Stay the Same

Fri, 15 Oct 2010 16:00:00 GMT

With Google marking its sixth anniversary, it is a good time to review one of my earlier pieces for this weekly series. Back on March 31, 2006, I wrote an article that discussed Google's split personality, with a focus on its remarkable performance in the overnight session.

Spot Forex versus Forex Futures: What Is the Difference?

Fri, 8 Oct 2010 16:00:00 GMT

Being a trader / trainer in futures and Forex classes, I get this question all the time.

Women in Trading: The Life of a Mom in the Markets

Fri, 1 Oct 2010 16:00:00 GMT

A few weeks ago, I got a call from a prospective client. She was in her mid-40s and had some questions about a presentation she heard me give the night before on the NASDAQ Futures.

Analysis Paralysis

Fri, 24 Sep 2010 16:00:00 GMT

I dare any of you who have traded the markets for any period of time to say you haven't fallen victim to the dangerous and crippling affliction - Analysis Paralysis.

Index Investing

Fri, 17 Sep 2010 16:00:00 GMT

Investors have many misconceptions about the market. Whenever someone mentions how the market has done or is doing, he or she will refer to a particular segment of the market.

Master the Runner

Fri, 10 Sep 2010 16:00:00 GMT

To make serious money trading while controlling your risk, you need to master "the runner". The runner is the percentage of a position that you keep open for as long as possible when the trade moves in your direction.

Intermarket Day Trading with eSignal LRCs - Part 3

Fri, 3 Sep 2010 16:00:00 GMT

What you see shown below is my "poker table". The image shows my July 16, 2010 trading screen. The 45 charts in my trading screen cover futures and exchange-traded funds (ETFs).

How to Buy Gold for $100...and Get $200 Back

Fri, 27 Aug 2010 16:00:00 GMT

It's one of the most valuable and most actively traded assets on the planet.

Beware the Trader Housewife

Fri, 20 Aug 2010 16:00:00 GMT

If I had a dollar for every time I've heard the following excuse over the years, I would be a very wealthy lady: "Oh, I couldn't possibly trade; I'm just a housewife."

Moving Averages 101

Fri, 13 Aug 2010 16:00:00 GMT

Trend identification is important to any and all investors and traders. Whether you trade with the trend or against it, you need to be able to identify a current trend properly. One of the most popular ways an investor or trader can identify a trend is by using moving averages.

The Wits of Learning Professional Trading

Fri, 6 Aug 2010 16:00:00 GMT

The "privatization" events of the late 1980s and early 1990s, in Paris, France, introduced me to the power of investing and, later on, to real-time trading. I did some quick thinking...

Three Ways to Help Reduce Overtrading

Fri, 30 Jul 2010 16:00:00 GMT

Deciding on a definition of "overtrading" is much the same as defining "a lot of money". It is different for everyone.

Control through Mental Risk Management -- Part II

Fri, 23 Jul 2010 16:00:00 GMT

In Part I of this series, we looked at controlling Big-Win Dreaming, Revenge Trading and Position Size Envy. Here are 3 more key factors to mentally control your risk.

Control through Mental Risk Management -- Part I

Fri, 16 Jul 2010 16:00:00 GMT

Think about these 3 mental risk management concepts when you are trading.

Intermarket Day Trading with eSignal LRCs - Part 2

Fri, 9 Jul 2010 16:00:00 GMT

How often are you blindsided? You are blindsided if you go long when you should go short or short when you should go long.

Identifying Pivot Lows in an Up Trend with Wyckoff Volume Analysis

Fri, 2 Jul 2010 16:00:00 GMT

Previously, in an article entitled "Identifying Temporary Tops in an Up Trend with Wyckoff Volume Analysis", I outlined how to find the likely turning points that lead to pull-backs in an up-trending market. In this article, I will discuss how you can find the likely pivot lows in an up-trending market, using only a price and volume chart.

Five Tips for Trading Gaps

Fri, 25 Jun 2010 16:00:00 GMT

Gaps are events that jolt price up or down, leaving an open window to the last bar. Market folklore offers guidance on trading gaps, but classic wisdom such as "gaps get filled" doesn't tell us how to make profitable decisions when a gap suddenly appears on a favorite chart.

The Perfect Storm: Lessons Learned from the DOW's 1,000 Point Flash Crash

Fri, 18 Jun 2010 16:00:00 GMT

Was the May 6, 2010 intraday crash and recovery just another one of those once-in-a-lifetime anomalies -- a rare confluence of events that formed the "Perfect Storm"?

What Style of Trader Am I?

Fri, 11 Jun 2010 16:00:00 GMT

In my years of trading, one thing I have found is that one strategy does not fit all. We all have different risk tolerances and monetary goals. One of my goals in each E-mini Futures class I teach is to show the students a strategy and have them take it home and use it as a foundational starting point for defining their own strategy.

Trading with Pivot Points

Fri, 4 Jun 2010 16:00:00 GMT

Traders have always looked for a way to find out what a security they were interested in would trade during the day. Although pivot points cannot predict what will happen to a security for sure, they can spotlight important trading levels you will need to keep in mind.

Is Forex Trading a Zero-Sum Game?

Fri, 28 May 2010 16:00:00 GMT

There is a misconception among some traders that every trade must have a winner and a loser. There is a great deal of misinformation out there and even some books published recently that incorrectly state that Forex trading is a zero-sum game. To clear up the confusion created by these inaccuracies, let's first understand the meaning of that phrase.

Three Ways to Reduce the Impact of Emotion When Trading

Fri, 21 May 2010 16:00:00 GMT

I have always suggested and firmly believe that learning how to become a consistently profitable market speculator is not that difficult - at least the logic, rules and strategy aren't. The challenge comes in when you actually attempt to execute a consistently profitable strategy.

Shed Some Light on Gold

Fri, 14 May 2010 16:00:00 GMT

As an active trader, you probably generally attack the market from every direction during the daylight hours but seldom focus on the evening hours of 6:00 p.m. to midnight, Eastern Time. However, trading volume in these evening hours often provides a glimpse into the direction of early morning prices.

Pulling the Trigger

Fri, 7 May 2010 16:00:00 GMT

In pattern trading, it is essential that one be able to identify where the pattern completes and enter as close as possible to the reversal point. This is especially important when you are keeping a tight grip on the amount of your trading capital at risk in any given position.

An Intraday Trading Approach: A Combination of Pitchforks, Elliott Waves, Gann and Jenkins Tools

Fri, 30 Apr 2010 16:00:00 GMT

My trading approach is mainly based on a method I created more than 20 years ago - integrated pitchfork analysis. I discovered this technique while I was searching for a trading approach that would work primarily in sideways markets but would also perform efficiently in trending markets.

Trading Bases

Fri, 23 Apr 2010 16:00:00 GMT

Technical analysts follow hundreds of well known price patterns, ranging from "classical" bar chart patterns popularized through the writings of Robert Edwards and John Magee, to patterns based uniquely on Japanese candlestick and point-and-figure charts, to more specialized niche patterns, such as the Gartley pattern, Trader Vic 2B pattern and O'Neil's cup-and-handle pattern.

Identifying Temporary Tops in an Up Trend with Wyckoff Volume Analysis

Fri, 16 Apr 2010 16:00:00 GMT

How do you identify likely intermediate tops in an up-trending market? Actually, it's a very simple concept that is very easy to understand and find on your charts. The originator of this price / volume pattern was Richard D. Wyckoff, a prolific trader in the early 1900s.

Intermarket Day Trading with eSignal LRCs

Fri, 9 Apr 2010 16:00:00 GMT

Can you define all of the forms of trading analysis in this article? Does it matter? Yes. The list included in this article is a partial list of the analytical tools that drive global market action on a daily basis and affect your bottom line.

How to Identify When a Trend Is Ending

Fri, 2 Apr 2010 16:00:00 GMT

I became a chartist a little more than 20 years ago and have been using eSignal day in and day out for more than 16 years, longer than most I suspect. If there is one thing I or anyone else looking at the financial markets wants to know the most, it is the point at which an old trend has finished and a new one has begun -- as big a challenge now as it was back in the early 1990s.

Effective Short Sale Strategies That Can Be Used in the Early Stages of a Market Correction

Fri, 26 Mar 2010 16:00:00 GMT

Short selling can be risky in the early phases of a correction, and you can't just flip over your long-side strategies and chase a falling market.

Introduction to the A / D Line

Fri, 19 Mar 2010 16:00:00 GMT

When you hear someone mention the A / D Line, you will probably think he or she is referring to the Advance / Decline Line, which has become a popular barometer of market action on television, as well as radio.

History Repeats Itself

Fri, 12 Mar 2010 17:00:00 GMT

I'm sure, if you're like me, you have heard all the cliches. "History repeats itself," "Timing is everything," "Time is money," "Everything happens in 3's," and so forth. Well, every one of those statements is true regarding the markets, as well as life in general.

Being Right versus Being Profitable

Fri, 5 Mar 2010 17:00:00 GMT

As human beings, we have certain built-in emotional characteristics. These have evolved - and rightly so - as survival mechanisms. Fear is one of these emotions.

Every Trader Needs to Exercise Discipline and Patience and Follow the Rules

Fri, 26 Feb 2010 17:00:00 GMT

I spend most of my time trading and teaching others how to trade by way of my computer. But, I have conducted a multi-day Forex trading conference. My responsibility was to give a one-hour lecture and then lead three, three-hour live trading sessions.

Trade the Chart - Not the Investment Principle

Fri, 19 Feb 2010 17:00:00 GMT

As of the first writing of this article in September 2009, although the markets had been on the rise, trading volume was on the light side. More specifically, not only had it not kept pace, it continued on its downward descent. This mystified many market participants because it flies in the face of technical analysis.

New Aspects of Trading Based on Integrated Pitchfork Analysis

Fri, 12 Feb 2010 17:00:00 GMT

Whenever the trader performs any trade, he or she shouldn't ignore the importance of the trading triad: Bollinger bands (BB), Elliott waves and pitchforks. Using these state-of-the-art professional trading tools in association with one another will not only reveal the best trades but will put the trader well ahead of the crowd.

Why Do Many Traders Lose Money in Forex Trading? (Part 2: Setting Stops for Range Trading Strategies)

Fri, 5 Feb 2010 17:00:00 GMT

The recent influx of new speculators in the Forex trading market has been met with a similarly pronounced outflow of existing traders. Extremely volatile market conditions have clearly been detrimental to many participants, and much of this effect relates to popular trading strategies in the market today.

Are You Really a Risk Taker?

Fri, 29 Jan 2010 17:00:00 GMT

Very early on, on the first day of any class I teach, I write on the white board these two words in big bold print: EMBRACE RISK. It would seem that everyone looking to get involved in trading, whether on a full-time or part-time basis, understands that trading is a risky business, so embracing risk would be a given.

Commodity Market Leverage

Fri, 22 Jan 2010 17:00:00 GMT

Ever wonder why you hear about so many fortunes being made and lost in the futures markets? Here is the answer "Leverage"! Let's look at this double-edged sword that we all live by each day of our trading careers.

Trading versus Investing

Fri, 15 Jan 2010 17:00:00 GMT

Investing and trading are two very different activities. When we invest in something, whether property, personal property or some type of security, it is essential that we have a fundamental understanding of the investment.

Why Do Many Traders Lose Money in Forex Trading? (Part 1)

Fri, 8 Jan 2010 17:00:00 GMT

Extreme Forex market volatility and major headlines have made Forex trading more popular than ever, but the lightning-quick influx of new traders has been matched by a similarly dramatic outflow of existing traders.

How to Trade the Crush

Fri, 1 Jan 2010 17:00:00 GMT

One offshoot of the extreme volatility that came with the global financial crisis is that many private traders are now looking beyond simple strategies, such as buying shares.

How to Buy Gold...at the Price You Want...and Get Paid for It

Fri, 25 Dec 2009 17:00:00 GMT

So, what exactly is the best way to grab profits from the important and often explosive world of commodities?

The Four Stages of Trading

Fri, 18 Dec 2009 17:00:00 GMT

Like so many other things in life -- trading involves progressing through various necessary stages of learning. This happens regardless of whether we are conscious of the process or not.

No Sycophants, Please!

Fri, 11 Dec 2009 17:00:00 GMT

Many of us have read through a textbook that has explained how different indicators are categorized and belong to "indicator families", but it is easy to forget how these indicators typically work together.

Four Easy Ways to Trade the World's Top Commodities

Fri, 4 Dec 2009 17:00:00 GMT

I'm going to open the door to a "secret society" for you today.

Every Action Has an Opposite and Equal Reaction

Fri, 27 Nov 2009 17:00:00 GMT

Today, we are going to discuss the law of Physics mentioned in the title of this article and look at a simple application of it in trading.

Seasonality in Trading Futures

Fri, 20 Nov 2009 17:00:00 GMT

Seasonal analysis has long been the domain of professional traders, but over the last decade or so it has slowly been picked up by the private investor.

Simple Moving Average Trading Patterns

Fri, 13 Nov 2009 17:00:00 GMT

Moving averages are perhaps the most popular and widely known of all technical indicators. Virtually every charting software package includes them.

Intraday Trading with Inter-Market Analysis

Fri, 06 Nov 2009 17:00:00 GMT

Learning the intuitive approach, true as ever, in the practice of profitable trading, just might catapult the trader's efficiency well ahead of the crowd's, due to the approach's global discernment or perception.

About Stops, Risk Management and Other Trading Success Factors

Fri, 30 Oct 2009 16:00:00 GMT

Trading success is made up of many factors, well planned and well practiced. Among the most important are the judicious use of stops, the downfall inherent in focusing on short-term performance to the detriment of long-term results, the three crucial factors in risk management and the primacy of risk management in ultimate success.

Who Wants to Be a Millionaire: The SPY versus the S&P500 E-mini Futures

Fri, 23 Oct 2009 16:00:00 GMT

This article is written to benefit the individual, independent trader.

A Simple Strategy for Using Weekly Charts to Trade

Fri, 16 Oct 2009 16:00:00 GMT

Modern markets support a variety of time-based strategies. At one end of the spectrum, day traders throw money at trends that come and go in minutes.

Knowing When to Say When

Fri, 09 Oct 2009 16:00:00 GMT

Every trader needs limits. Unfortunately, one of the things that attract us to trading in the first place is total control because, when we trade, no one tells us what to do or when to do it.

Three Ways to Reduce the Impact of Emotion When Trading

Fri, 02 Oct 2009 16:00:00 GMT

I have always suggested and firmly believe that learning how to become a consistently profitable market speculator is not that difficult. The logic, rules and strategy are certainly not rocket science.

A Moving Average Cross-Over Strategy

Fri, 25 Sep 2009 16:00:00 GMT

Across the three trading settings (bearish, sideways, bullish) is a simple moving average or a crossover moving average the better indicator of future performance? Most articles describe the effectiveness of using different indicators without discussing the specific trading environment.

Trading for Control and Avoiding the Confidence Trap

Fri, 18 Sep 2009 16:00:00 GMT

Most traders and investors at one time or other have fallen into the "confidence" trap. Sometimes, it's the result of believing in the infallibility of their research. Other times, it's due to having a presumed "hot" hand -- they think they've finally got the game figured out and can do no wrong.

Don't Be Blindsided

Fri, 11 Sep 2009 16:00:00 GMT

Regardless of how good your trading and analytical skills might be, there are going to be times when you are flat out wrong about what the market is going to do next. No trading methodology works all the time.

Two Sides of a Trade: Part 2 of 2, The Ratio Vertical Spread

Fri, 04 Sep 2009 16:00:00 GMT

In the Part 1 of 2 of this article, I discussed one of my favorite types of trades, the backspread. In this article, I'm going to talk about the other side of that trade, the ratio vertical spread.

Two Sides of a Trade: Part 1 of 2, Benefit with Backspreads

Fri, 28 Aug 2009 16:00:00 GMT

One of my favorite types of trades is called the backspread. It's another one of those trades with which you can make money in several different ways, but like every other trade and strategy that I know, it's not foolproof -- you can also lose money.

Just How Good Are You?

If you had been entrusted to manage a mutual fund and were able to consistently return 15% a year for investors, it is probably accurate to say that you would be widely known on Wall Street and a frequent guest on CNBC.

Trading for a Living: Trending with Integrated Pitchfork Analysis

Fri, 14 Aug 2009 16:00:00 GMT

Without a precise strategy, there won't be any profitable trades. The trader should be aware that determining trading strategy comes after the other two essential trading stages -- the psychological and risk and money management.

Trading versus Gambling

Fri, 07 Aug 2009 16:00:00 GMT

The other day, I was spending time with a friend of mine I have been close with since we were children. For years, any time my career came up in conversation, he insisted that my trading career is nothing more than gambling.

Trade Psychology: The Act of Self Recognition

Fri, 31 Jul 2009 16:00:00 GMT

Now, we can re-write the ending to the movie Trading Places. Billy Ray and friends find out that the Duke brothers will obtain the Orange Juice Report in advance. Wanting to thwart the Dukes, they chase after the report just as in the original movie.

Trade Psychology: The Act of Self Recognition

Fri, 24 Jul 2009 16:00:00 GMT

If the Accountant is rock as the Analyst is light, then the Trader must be water. In the changing weather of any given trading day, he finds himself immersed alternately in opposing emotional states not of his own making or design, and certainly not of his chosen intent.

Trading Plans -- Part 3 of 3

Fri, 17 Jul 2009 16:00:00 GMT

Effective research is the foundation for a good trading plan. To conduct your research, you are going to have to make some assumptions about the best way to trade a market. How does one go about making these initial assumptions?

Trading Plans -- Part 2 of 3

Fri, 10 Jul 2009 16:00:00 GMT

There are numerous approaches to successfully trading the markets. Some methods attempt to capture trends while others seek to capture trend reversals. There is a time and a place for both. Some traders follow carefully scripted trading systems that leave nothing to chance whereas other "free spirits" have varying degrees of discretion within their approach to the market.

Trading Plans -- Part 1 of 3

Fri, 03 Jul 2009 16:00:00 GMT

Over the past eight years, I have attended numerous trading workshops and conferences, read dozens of books on trading and many more magazines and newspapers. I've also had the opportunity to spend time with top traders and trading educators in a variety of settings.

Variable Time / Price Locations of the Anchor in Dr. Andrews' Pitchfork

Fri, 26 Jun 2009 16:00:00 GMT

As most of us know, a pitchfork can't be constructed without knowing the exact location of the anchor (P0 pivot) and the P1 and P2 pivots, which will dictate the size and the slope of the P1 - P2 swing.

Positive Exits

Fri, 19 Jun 2009 16:00:00 GMT

Many books and articles have been written on how the right attitude is critical for successful trading and how improving your trading results first requires a shift in awareness. One of the most repeated messages in lectures and seminars on how to change your psychology is to focus on what you want -- because what you focus on is exactly what you will experience more of.

Trading Bull and Bear Traps

Fri, 12 Jun 2009 16:00:00 GMT

One of the phenomena that many traders and investors try to avoid, and with good reason, is bear and bull traps. These can best be defined as brief breaks of support / resistance before the market returns to its existing range.

The Value of Portfolio Testing

Fri, 05 Jun 2009 16:00:00 GMT

Portfolio testing is a method of testing a particular strategy (or group of strategies) on a portfolio of symbols, thereby, generating a performance report for that portfolio.

Trading and Time

Fri, 29 May 2009 16:00:00 GMT

Looking at a chart of the XLF (the ETF for the financial services sector), we can see that the demand (support) level suggested that this would be a low risk area to buy the XLF for a bounce, not a long-term trade.

Classical Chart Patterns and the ADX

Fri, 22 May 2009 16:00:00 GMT

Although the universe of trading strategies is as wide and varied as the number of traders, orthodox technical analysis can be summarized simply as the forecasting of markets through the study and analysis of data generated exclusively from the buying and selling of financial instruments.

Trade Psychology: The Act of Self Recognition

Fri, 15 May 2009 16:00:00 GMT

We know now what will become of us should the Accountant be left to his own devices. Anything that involves change threatens his comfort. Seeking to end all changes, he will gamble us into bankruptcy; a change to end all changes. And, yet, it is his will to remain the same that builds the repository of our memory.

Trade Psychology: The Act of Self Recognition

Fri, 08 May 2009 16:00:00 GMT

We know what the Analyst is capable of when left to his devices. Seeking to attain glory for its own sake, he will eventually bring us down in ruination. And, yet, without him, that which separates us from all other life, something essential to our very soul, is gone forever.

Trade Psychology: The Act of Self Recognition

Fri, 01 May 2009 16:00:00 GMT

Most traders have an Accountant's belief in an efficient market. They believe that news events and specific fundamentals developments determine the outcome of the market from move to move.

Trade the News...You Go First!

Fri, 24 Apr 2009 16:00:00 GMT

Traders are attracted to trading news events because they expect sharp moves in price action that, if traded successfully, can provide the opportunity for quick and sizeable wins.

Day-to-Day Business Operations When You Trade for a Living

Fri, 17 Apr 2009 16:00:00 GMT

When a novice trader enters the highly competitive field of trading, he or she should be aware that a new trader is up against the finest, sharpest and toughest minds in business.

Reading Patterns

Fri, 10 Apr 2009 16:00:00 GMT

Everyone is a chart reader these days, but this venerable practice isn't as easy as it looks. That's because there are just a few ways to make money and a thousand ways to be wrong.

Trade Psychology: The Act of Self Recognition

Fri, 03 Apr 2009 16:00:00 GMT

The Accountant believes in Efficient Market Theory - that news events, policy changes and fundamental developments push pricing back and forth, and that these things are often unpredictable and the outcome of geo-political contests, lunging first in one direction, then another, stumbling along, blown about by the foibles of democratic man.

Trade Psychology: The Act of Self Recognition

Fri, 27 Mar 2009 16:00:00 GMT

The Analyst's position in the world is that he already knows. He'll never admit not knowing how to do something. It's akin to the phenomenon of refusing to ask for directions. If you worked at a commodity brokerage firm as a broker when the Analyst called you to open an account, and you asked him if he'd ever traded futures before, he'd go off on some tangent about having traded stocks for years.

Trade Psychology: The Act of Self Recognition

Fri, 20 Mar 2009 16:00:00 GMT

The Analyst wants to control your impression of him. He defines himself in the reflection of your eyes. He needs affirmation. Without your acknowledgement of him being right, he isn't right.

The 10 Attributes of a Great Trader

Fri, 13 Mar 2009 16:00:00 GMT

Over the course of my 20 years in the professional trading arena, poker business and sports odds making, I found that certain qualities seem to be common among the successful.

The Time / Price Continuum

Fri, 06 Mar 2009 16:00:00 GMT

How many of you out there have heard something about time and price being equivalent?

Trading with Parallel Trigger Lines

Fri, 27 Feb 2009 16:00:00 GMT

Given the importance of the trigger line, we will dedicate an entire article to this subject.

What It Takes to Trade Well, Part 2 of 2: Is fear preventing you from trading to your potential?

Fri, 20 Feb 2009 16:00:00 GMT

What makes you think you have the discipline to be one of the 5% of day traders who succeed?

What It Takes to Trade Well, Part 1 of 2: Is fear preventing you from trading to your potential?

Fri, 13 Feb 2009 16:00:00 GMT

It takes discipline to be a good trader. It also takes courage. Need both? Get a trading coach. Better yet, coach yourself.

Momentum Indicators in a Free-Falling Market

Fri, 06 Feb 2009 16:00:00 GMT

In this current, free-falling market, trending indicators are still sending accurate signals. These continuation patterns perform best in a stormy market because they encourage trading at the onset of a downward trending market by placing lines above as well as below the existing price of an instrument.

How Pros Make Profits Head and Shoulders above the Amateurs...and You Can Too, Part 2

Fri, 30 Jan 2009 16:00:00 GMT

In Part 1 of this article, we outlined some of the distinctions you can look for in a Head and Shoulders pattern beyond the simple higher high and lower high that most retail traders fixate on.

How Pros Make Profits Head and Shoulders above the Amateurs...and You Can Too, Part 1

Fri, 23 Jan 2009 16:00:00 GMT

The Head and Shoulders price pattern is one of the most well known patterns in trading. Its popularity is likely due to its visual simplicity.

Combining Technical Indicators: Bollinger Bands / GET Stochastic / ADX

Fri, 16 Jan 2009 16:00:00 GMT

We all dream of the perfect indicator, one that would be the "idiot" camera as far as trading is concerned. This would get us in on a move at the bottom and get us out at the top. However, the cruel reality is that some indicators work very well some of the time, and others work moderately well all of the time.

Some Tips and Hints to Help You Build an Effective Trading Plan

Fri, 9 Jan 2009 16:00:00 GMT

Trading may not be rocket science, but the path to success at it may seem just as complicated at times. Fortunately, you can do some things to cut down the considerable learning curve. Start by writing an effective trading plan.

The Greeks Are Coming, Part 2

Fri, 02 Jan 2009 16:00:00 GMT

It's times like these when knowing your risks (Greeks) could save the day. Well, prepared options traders should be able to weather the storms quite well and, in fact, look at the increased volatility as an opportunity. Stock traders just using options for increased leverage may experience a different fate.