In browsing around the web I often encounter discussions of the merits of a particular trade and opinions about the direction of a market. I know that the traders who voice these opinions have good intentions and much of the discussions could be helpful to the person receiving the information. (Some of these discussions are […]

We do everything for a reason. The reason behind any act is, for the most part, unconscious. If we want to change a behaviour we need to identify the reason, the underlying objective, and examine it. We need to examine it to determine whether this objective, this assumption, supports us in what we want to […]

The following situation happens quite often to many traders. Look it over and see if it has been happening to you:
You have been faithfully following your trading plan and the rules you’ve set for trading. By following them you are now in a trade that doesn’t look so good.
At the same time, by following your […]

Leonardo Pisano (nickname Fibonacci) was a mathematician, born in 1170, in Pisa (now Italy). His father was Guilielmo, […]

Some market technicians that use technical analysis to look for a nearing market bottom or market top have noticed over the past several years that the stock market will consistently move in a 5 wave pattern which is based on concepts from Elliott Wave Theory.
[…]

Introduction - New Way to Look at Prices
Would you like to learn about a type of commodity futures price chart that is more effective than the type you are probably using now? If so, keep reading. If you are brand new to the art/science of chart reading, don’t worry, this stuff is really quite simple […]

Stocks that have large price gains typically will stair-step upward and form Flat Bases before resuming their up trend. This action may occur several times as a stock remains in an up trend and could last from a few days to several weeks depending on the situation. Flat Bases are characterized by small daily trading […]

Many investors fail to use a Stop Loss Order to protect themselves in case they end up buying a stock at the wrong time. In his book “How to Make Money in Stocks” William O’Neil states even the most successful investors maybe wrong about 50% of the time when choosing stocks to invest in. The […]

There are three favorable Chart Patterns to look for as an investor. They include the “Cup and Handle”, “Double Bottom” and “Flat Base”. This article will concentrate on the “Double Bottom” pattern which looks like the letter “W” as it develops. An example of a stock which had formed a Double Bottom pattern before breaking […]

The whole concept of odds and probabilities is a subject that most beginner traders avoid, but is absolutely one of every professional trader’s secrets for success. Trading the financial markets is all about managing risk, nothing is 100% accurate or works 100% of the time. There is always a certain chance, certain odds, certain probability […]

One of the biggest factors an investor should consider before buying a stock is what type of chart pattern the stock is forming. A company may have great fundamentals but if it has an unfavorable chart pattern then it may not be a good company to invest in. One of the basic chart patterns to […]

The opening price of a daily or a weekly bar usually illustrates the amateurs’ view of value. Research has shown that opening prices very often
occur near the highs or lows of daily bars. Prices tend to recoil later in the day from the extremes set early on by the buying or selling of amateurs.
The actions […]

I have always used a bit of Gann’s trading methods in my own trading - especially to determine trend. Love him or hate him, it would be a brave trader that would deny that Gann was one of the most influential traders of the last century.
The following article appeared in the December 1909 issue of […]

Many people think that trading is similar to gambling. Is this really the case?
For example, let’s take a look at Black Jack. If you start with $10,000 gambling capital, placing bets of $100 per hand and play 100 hands per day, how long will you last? In the game of Black Jack, with Las Vegas […]

A Pivot Point resides near the top of a trading range as a stock is developing a Handle. The proper time to buy a stock is when it begins to break above its Pivot Point and is accompanied by increasing volume.
Here are some Examples
EBAY formed a 1 year Cup and then developed a 6 week […]

Those of you who have been trading for a while will be familiar with Pivot Points. During this lesson I want to go over how to find a Pivot Point and also a slightly different method of using them. First let’s look at how you calculate a Pivot Point.
Using a bar chart you will observe […]

During my first year as a local (independent trader) on the floor of LIFFE, I bought and sold 8804 FTSE futures contracts, about 40 contracts per day on average. The result was a loss of £61,620 or -£267 per trading day. I was profitable on 55% of days with an average gain of £1009, my […]