Below are the 16 most recent journal entries recorded in bobby76underwoo's InsaneJournal:

Monday, April 18th, 2011
7:36 pm	S&P Chops US Economy Outlook From Stable To Negative The S&P lowered their own prospect for the U.S. from stable to negative today and the markets reacted with a significant sell off. The report issued Monday morning says that the United States carries a substantial debt and deficit in comparison with other highly rated countries, and unlike with those other nations the road to addressing the debt isn't apparent. The United States kept its AAA rating, however the downgrade to the outlook means that S&P analysts feel there is at the very least a 33% probability that the agency will need to reduce its credit ranking on U.S. debt within the next couple of years. Technical damage has been done on the stock chart of the S&P 500 today going from an uptrend ranking to a very weak downtrend rating. The S&P 500 closed down just underneath the 50 day moving average today as the Bearish Double Top pattern continues. I bought an S&P 500 short fund today, ticker SPXU. This is an ultra-short S&P 500 ETF. Standard and Poor's is a joke. This is the same politically motivated credit agency that provided AAA ratings to mortgage guaranteed securities that tanked our financial system to begin with. The bogus AAA rating convinced investors to purchase these types of investments, which produced a housing boom that went out of control. I'm shorting the S&P 500 not because I really believe anything coming out of Standard and Poor's but rather I am relying on republicans to hype this to the max. This is just the gas in which republicans and the subset of republicanism, the Tea Party, is seeking to go with as the 2012 elections approach. I am just wagering that republicans are going to come out with their speeches in hand blaming almost everything on Obama and seriously spooking traders big time. I am wanting to get a 4 or 5 day dive on the S&P 500 in the coming days for fast profits. For additional instructive trading and investing tutorials visit these fantastic resources: How To Make Money In Stock Market And Horrible Forecasts How To Make Money On The Stock Market And Horrible Forecasts How To Make Money In Stock Market And Horrible Predictions (Comment on this)
Wednesday, April 13th, 2011
7:46 pm	Stock Market Examination SPY At Crucial Pivot Level Keep your eyes on SPY and the $132.50 area folks. This is a main pivot level and may help us evaluate who the actual superior gang, either bulls or bears, is. This very important level is the consequence of a Bearish Island Reversal pattern which has formed over the last couple of weeks. Should the bulls retake the $132.50 level, then the upcoming level of resistance is back up at the $134 level plus a probable conclusion to the Bearish Double Top pattern we have been at the moment functioning under. If the bulls are not able to retake the $132.50 level, then your next support level on the down side would be the 50 day moving average at $130.55 On Thursday, the March Producer Price Index statistics are being released and that could effect the market in either direction. To get more informative trading tutorials have a look at these terrific resources: How To Make Money In Stock Market Making Money On The Stock Market How To Make Money In Stock Market (Comment on this)
Saturday, April 9th, 2011
2:28 pm	Stock Trading Forecast For Trading Week 03-11-11 The bulls have a very small advantage over the bears entering trading next week. The Dow is in a uptrend. It is a downgrade from last week's strong uptrend ranking. Nevertheless, the uptrend is still intact. The S&P 500 is within a strong uptrend. It is the identical ranking given to this market last week. The Nasdaq is within a uptrend. Much like the Dow, it is a small downgrade from the previous week's strong uptrend. However, the uptrend remains in effect. The Russell 2000 is likewise being downgraded this week from the strong uptrend ranking, to simply an uptrend. Hence the Dow, S&P 500, Nasdaq, and Russell 2000 are all in uptrends with the S&P 500 and the Nasdaq in strong uptrends and leading the market higher. In a perfect scenario, you want to see the Russell 2000 in a strong uptrend leading the Nasdaq and the S&P 500 up. We don't have that bullish upside leadership originating from small caps so some care is recommended. Having said that, the major indices show that the bulls still have a small advantage over bears entering trading next week. Reviewing market internals we've got 70% of companies bought and sold on the New York Stock Exchange trading over their 50 day moving average. We've got 82% of companies trading above their 200 day moving average. Gold continues to possess a strong uptrend rating. Silver continues to have a strong uptrend rating. The US dollar continues to have a strong downtrend ranking. The US greenback has broken March support. This broken support facilitates the upwards swing trade in gold and silver stocks. Fundamental analysis reports with the biggest chance of moving markets next week are: Tuesday - April 12, 2011 - International Trade Wednesday - April 13, 2011 - Retail Sales Thursday - April 14, 2011 - Producer Price Index Friday - April 15, 2011 - Consumer Price Index Friday - April 15, 2011 - Industrial Production For lots more instructive stock trading how to guides visit these terrific resources: All About TrendFollowing Trend Trading Stocks Trend Trading Strategies Trend Trading Stocks (Comment on this)
Tuesday, April 5th, 2011
7:02 pm	Make Money In The Stock Market I'm constantly asked the question: how do I generate profits in the stock market? You will find a lot of educational stock trading videos on the Internet and on my own Stock Trading Master channel. There are also exceptional articles on trading on a lot of web sites. Even though I applaud you for wanting to cut to the chase and keep things straightforward, there isn't any short cut to figuring out the way to profitably trade in the stock market. Understanding how to make money at investing takes a reasonable length of time. This is the reason you should start off investing with a smaller amount of money as you learn the basic principles. Just like anything else in life, you will find there's a great big, often agonizing, learning curve which stands between you and profitable stock trading. If I was forced to give you just one single bit of help and advice it is to get yourself a stock screener that can help you objectively gauge the trend in both the major indices and the market you intend to trade. Successful trading is centered on finding out the trend in an investment. When you think it over, all of us are trend traders. Everyone who buys a stock needs a trend to form soon after buying so that he might sell the stock for a gain. Owning an objective tool that enables you to definitely determine the trend in a stock does not mean you are going to make a profit on every trade. What it can do is set you up to cash in on just a little bit of good luck. You've heard the saying on Wall Street: it's better to end up being lucky than good. You'll need to be there in the correct position as soon as lady luck comes banging on your door. That means that when you are looking to make money on the long side, you have to be in a strong uptrending stock in a strong uptrending sector. This does not mean you'll earn money whenever you buy a strong uptrending stock in a strong uptrending sector. What it does mean is that if a bit of luck comes your way, there's a more significant probability that you are going to generate income on the long side being in a strong uptrending stock. When good fortune does come your way, always stay humble and do not think that the main reason you made money had been all owing to your own expert stock picking skills. Traders which get a puffed up spirit often suffer huge losses as they believe they have got trading and investing all worked out and begin putting on far more riskier trades. For lots more instructive trading and investing lessons visit these three excellent resources: Trading Guide - Think You're A Dumb Dog Investor Trading Trolls Stock Trading Expert Tutorial On Keeping Emotions Under Control The Way Opening Range Breakouts Could Make You Wealthy (Comment on this)
Sunday, April 3rd, 2011
6:13 pm	How To Make Money In Stock Market And Faulty Predictions The bulls have the advantage commencing trading next week. Like last week after I said it, a number of you thought I was outrageous with regard to saying that, nevertheless they did and the week closed up. Think of March 09. It looked as if the universe was coming to an end and yet markets started the largest 9 month run ever. The following is why in my opinion the bulls have an edge over the bears going into trading next week. The Dow, S&P 500, Nasdaq, and Russell 2000 are all in strong uptrends. Now a precious metal trader told me how the Dow appears like it is going to have a bearish double top formation off the 12400 level. You can not declare that. Almost nothing on the stock chart shows that a double top will form on the Dow. You aren't a fortune teller. You're not a prophet. You're not Jesus Christ however I recognize that if you are a christian you wish to be. You do not possess a time machine either. One more investor on the opposing end of the spectrum told me: I guarantee gold shall be in a trading range for the rest of the year. You simply can't claim that. You don't own a crystal ball. In this video clip, I made fun of professional investors such as Eric Sprott who, after they take their position in silver and gold, go forth and publish over the Internet these dazzling prophecies with the purpose of driving the value of their own holdings higher. Now YouTube trolls attacked my video and stated that I had been wrong simply because Eric Sprott manages hundreds of millions of dollars and he is a big name guy. The facts prove otherwise. We have had uprisings in the middle east, a huge Tsunami in Japan that has slain more than 10,000 people, a nuclear plant melt down, a lot has taken place since Sprott made this prediction. Springtime hit more than a week ago and gold is at $1,428 and silver is at $38. Just what exactly happened to $2,150 an oz gold by spring time? When an individual is making prophecies about the price of something and their utilizing a non-sequitur such as their name or the amount of money they manage to convince you that they can foresee the future, you need to run the other way. He had been wishing the economy would continue to fall to support his gold position. So they have Schiff on that bashes the GM bail out and says the US government will likely be telling you what sort of cars you have to drive and that the government can't run a car company. He continues on to say that this will be a black hole for tax payers and that they are going to need to bail out GM time and time again. Peter Schiff went on to state that the government should simply get out of the way and let GM fail (of course a worsening economy was great for his gold position and it proved helpful for Fox News' aim of making Obama a one-term president). This was reported as though it was reliable news when really it had been yet another dumb ideologue attempting to predict the future. It turned out that the GM bail out did deliver the results. The government never told anyone which kind of car they had to buy. The tax payer had been totally paid back. GM is growing and is also once more hiring at some of their facilities. You'll want to get out of your brain that good stock investing is related to forecasting the future. It is not about that. It really is about looking at a stock chart and establishing the trend. Everybody needs a trend to form after they purchase a stock if they hope to sell it for a profit. Where we differ is time-frame and how long we play the trend for. It really is all about establishing the trend. This is very important since the Russell 2000 is leading the other major indices to the upside which suggests the other key indices will do a breakout too. Checking out market internals, the TICK is quite amazing with a close at $1086. Don't forget, +1 tick is a buy, -1 tick is a sell. In a perfect world, the market makers can match up just about every buy order with every sell order and the TICK would always be 0. Nonetheless when institutional traders come in and purchase stocks throughout entire sectors, the market makers aren't able to match each buy order with a sell order instantaneously which means you have non-zero readings. Usual retail trading is between -600 and +600. Amounts over or even beneath this range suggest institutional buying or selling. This is critical for the reason that as swing traders, we must buy and sell in the direction of the institutional traders and not against them. Precisely How Opening Range Breakout Will Make You Rich The Magic Formula For The Donchian Trend For Easy Profits Stock Investing Expert lesson About Keeping Emotions Under Control All About TrendFollowing The Key To The Donchian Trend That Can Make You Rich (Comment on this)
Saturday, April 2nd, 2011
12:39 pm	Stock Trading Master lesson About Arrogance Leading To A Fall When compared, the S&P 500 was flat, it really closed down 0.09% in the month of March. So I am constantly being trolled by silly gold bugs who keep informing me that I actually did not make 20% in the stock market this month thanks to inflation as well as the falling dollar. And when you estimate capital gains taxes, I actually lost money for the month. For the month of March, gold is up 0.49%, silver is up 9.5% which means we've outperformed gold and silver put together by over 100% just for the month of March. When you go back six months, then I have out performed gold and silver by nearly 700%. That is just the facts and reviewing the numbers. Even while inflation is up in a few industries like energy and food, it is down in other sectors like housing, rental housing, rental apartments, computers, furniture, jewelry, and there are others. As for the declining dollar, exports continue to climb which supports growth in the manufacturing sector here in the U.S. is the third largest exporting nation on the planet coming in a bit below China. Guess who the world's top manufacturing country is? The U.S. Furthermore, the cheap dollar indicates low interest rates which is certainly pro-growth. Finally, I'm not taxed at 40% capital gains tax like a few of these outrageous nut job gold bugs claim. My capital gains tax is very small coming in about half that or 20%. The Obama administration has reduced taxes even more than George Bush on many things and so my tax liabilities are the lowest they have been in a long time. Nevertheless, you know what guys, there is a smart old biblical scripture which says after an arrogant and puffed up mindset comes a big fall. What pops into my head is a online video that went viral with more than 171K views in 2 weeks of a guy who just won a laptop. He was much too excited and he falls right after picking it up which smashes it into pieces. I have seen this happen to a lot of investors. They get all psyched when they reach 4 or more winners in a row and they feel they got trading all figured out after which pow, then end up right on their back. You should be getting more fearful when you hit many winning trades in a row because you know the chances are higher now that you will have a loser. Try to eliminate all of your emotions from your buying and selling decisions. It really is ok to get good and happy after you close out a winning trade provided that you knock yourself back down to earth before searching for and getting into the next trade. In case you are so joyful that you aren't able to control yourself, then it is advisable to sit out in cash until you get those emotions back in check. To get more educational trading and investing how to guides take a look at these three good resources: All About TrendFollowing Stochastic Indicator Lesson Trading Trolls (Comment on this)
Thursday, March 31st, 2011
7:34 am	The Key To The Donchian Indicator For Easy Profits Richard Donchian was a futures trader, that's credited with creating the widely used Donchian Channel Indicator. Richard Donchian is recognized as the father of trend following. The Donchian Channel is made by using the highest high of x number of days, and the lowest low of the identical x length of time, then marking the location between those values on your stock chart. The Donchian channel is a practical indicator for observing the volatility of a market price. If a price is stable the Donchian channel will be fairly slim. When the price changes considerably the Donchian channel is going to be wider. Its main use, however, is designed for delivering signals for buy and sell trades. If a stock trades above its highest x day high, then a long trade is made. When it trades below its lowest n day low, then a short is established. They're invaluable for projecting support and resistance price levels from an objective point of view. How It Is Utilized The Donchian Bands are generally used as a breakout indicator, it defines support and resistance and generate entries as price breaks these levels. As lows and highs usually correlate with support and resistance levels, this indicator is helpful in fairly identifying these levels. On the other hand, it is also used as a reversal signal - entering when price touches a band and reverses its direction. Before using the indicator in this way, confirm the credibility of the psychological level by demanding at the very least 2 touches at the level. This helps to ensure that the signal is strong and improves its dependability. One other way of trading the Donchian Band is using its middle band. The middle band is the average of the upper and lower band, and can also be employed to determine trend. Entry signals are produced in the following way: When price crosses the middle band from below - buy, and when price crosses from above - sell. It's really a effective signal when trend strength is is verified with other indicators like the MACD and stochastic. Buying And Selling With Donchian Bands There are various ways of deciphering and trading the Donchian Bands. Essentially the most widely used is the breakout: 1. Long Trades - Long trades are entered when price breaks above the 20-period upper Donchian Band. Defensive traders wait for price to close above the Donchian upper band to get into the position. 2. Short Trades - Short trades are entered when price breaks below the 20-period lower Donchian Band. Risk adverse traders wait for price to close below the Donchian lower band to enter the trade. The other strategy for using Donchian Bands is employing the middle band as the buy or sell signal line. Entry signals are created in the following way: When price crosses the middle band from below - buy, and when price crosses from above - sell. Donchian's Twenty Investing Lessons Richard Donchian started off his Wall Street career in 1930. Donchian set about writing a technical market letter in 1933, and persisted for quite some time. In 1934, Donchian came up with the subsequent 20 trading guidelines which are based in human psychology. Human psychology never changes and so these rules are still relevant today. 1. Beware of acting right away on a prevalent public opinion. Even if correct, it will usually delay the move. 2. From a period of dullness and inactivity, watch for and prepare to follow a move in the direction in which volume increases. 3. Limit losses and ride profits, no matter all other rules. 4. Small commitments are highly recommended when market position is not certain. Clearly defined moves are signaled frequently enough to make life interesting and concentration on these moves minimizes unprofitable whip-sawing. 5. Rarely take a position in the direction of an immediately preceding three-day move. Wait for a one-day reversal. 6. Judicious use of stop orders is a valuable aid to profitable trading. Stops can often protect profits, to limit losses, and from certain formations such as triangular foci to take positions. Stop orders are apt to be more valuable and less treacherous if used in proper relation to the chart formation. 7. In a market in which upswings will probably equal or exceed down swings, heavier position really should be taken for the upswings for percentage reasons - a decline from 50 to 25 will net only 50% profit, whereas an advance from 25 to 50 will net 100% 8. In taking a position, price orders are allowable. In closing a position, use market orders. 9. Buy strong-acting, strong-background commodities and sell weak ones, subject to all other rules. 10. Moves in which rails lead or participate strongly are often more worth following than moves in which rails lag. 11. A study of the capitalization of a company, the amount of activity of an issue, and whether an issue is a sluggish truck horse or a spirited race horse is fully as critical as a study of statistical reports. 12. A move followed by a sideways range often precedes another move of just about equal extent in the same direction as the original move. Commonly, when the second move from the sideways range has run its course, a counter move approaching the sideways range may be anticipated. 13. Reversal or resistance to a move will probably be encountered: A. On hitting levels at which in the past, the commodity has fluctuated for a considerable length of time within a narrow range B. On approaching highs or lows 14. Watch for good buying or selling opportunities when trend lines are approached, especially on medium or dull volume. Be sure such a line has not been hugged or hit too frequently. 15. Watch for crawling along or repeated bumping of minor or major trend lines and prepare to see such trend lines broken. 16. Breaking of minor trend lines counter to the major trend gives vital position taking signals. Positions can be taken or reversed at such places. 17. Triangles of ether slope may mean either accumulation or distribution contingent on other considerations although triangles are often broken on the flat side. 18. Beware of volume climax, in particular after a long move. 19. Do not count on gaps being closed unless you can separate breakaway gaps, normal gaps and exhaustion gaps. 20. During a move, take or increase positions in the direction of the move at the market the morning following any one-day reversal, however slight the reversal may be, particularly when volume declines on the reversal. For even more instructive trading lessons visit these three excellent resources: Investing Tutorial - Are You Currently A Dumb Dog Stock Trader Stock Market Lesson - Are You Currently A Dumb Dog Investor Trading Trolls (Comment on this)
Tuesday, March 29th, 2011
3:41 pm	Ways Opening Range Breakout Could Make You Way Too Rich The first hour of the trading day is the most volatile. Bears and bulls are fighting it out in the stock market, wanting to show you who's will be the dominant group for the entire day. This volatility results in a price-range it is possible to trade from. Like all breakout trading set-ups, this is a terrific set-up since it offers a very low risk entry. If there isn't any follow-through on the opening range breakout, you need to exit the trade instantly. The Time-Frame You are interested in opening range breakouts to take place between 9:50 am and 11:00 am. This offers a stock enough time to build the range while supplying you with enough information and facts to ascertain which direction it will breakout. Elements for Breakout Success You'll find 4 factors which need to be taken into consideration in order for the opening range breakout trade to be likely and profitable. 1. If playing the long side, is the Dow, S&P 500, and Nasdaq all in strong uptrends? They should be. If playing the short side, the major indices should be in a strong downtrend. Don't pee into the wind. 2. The uptrend implies a substantial disposition towards the high and improves the probability of a follow-through if the high is broken. 3. The high or low ought to be tested. Without this test, this level hasn't shown to be resistance or support so a follow-through is not as likely to happen. 4. Volume ought to be high. One thing to bear in mind with any breakout trading play would be that the volume should increase on the breakout. The trades over the tape ought to be increasing in size and quantity as the level is broken. These 4 elements will make sure that you get the most probability of a follow-through on the Opening Range Breakout. Exit Tactic To exit, I prefer to set a hard target of say 1% or more and then get out. Bulls make money, bears make money, but pigs get slaughtered. You needn't be a pig. Keep your profit objective small and after you hit it, get out. A whole lot of stock traders take profits at these significant psychological levels. Such whole numbers are $7, $8, $9,and so forth. Opening Range Breakout the Gap Reversal Strategy At this point I want to look at a variation of the Opening Range Breakout. It's known as the Opening Gap Reversal. It is really yet another of the numerous useful setups for day trading over the internet that you can add to your arsenal. The Play If the chart gaps between market open and 11:00 am, here's the way you play it. Regardless of whether that is accurate or not, we don't care. We simply intend to make money off the traders that do feel that it is true. Once the chart gaps up, you could fade (short) the gap in anticipation of the gap filling. If you desire to play it a bit safer without shorting, you can wait until the gap fills then go long. If it was a gap down open or perhaps the chart gaps down in the first hour of trading, you are able to fade (go long) the gap pending the gap filling. Another way to play it is to let the gap fill after which the moment it does, go short the stock. The common rule of traders is that gaps fill most of the time. I am not sure how factual that is, but I recognize plenty of people think that it's true. Essentially The Most Surprisingly Loco Stock Trading Concepts Of Numerous Traders Great Penny Stocks For Dummies and Idiots Humerous Video What Is Stochastic Indicator Guide (Comment on this)
Monday, March 28th, 2011
6:37 pm	Trend Trading Strategies A good number of traders don't realize that trend trading is actually trend following. Let me separate the phrase Trend Following. The first part is trend. Just about every investor must have a trend to generate money. If you contemplate it, it doesn't matter what the strategy is, if there is not a trend when you buy, you will struggle to sell at higher prices. The second part is following. Trend followers will need to wait for a trend to establish itself, then follow it. Trend Following looks to capture nearly all of a trend, up or down, for profit. A trader has a defined plan or tactic to put capital into a market in order to achieve a single goal: profit. Traders really don't care what they own or what they sell as long as they end up receiving more money than they began with. They're not investing in anything. They are trading. It is really an valuable distinction. Trend followers are really a style of technical analyst that neither predicts nor forecasts. This type is dependent on price. Trend followers form the group of technical traders which use this type of analysis. As opposed to looking to predict a stock's direction, their tactic is to respond to the market's movements whenever they appear. Trend followers respond to what has happened as opposed to predicting what is going to happen. They attempt to keep their tactics based upon statistically confirmed trading policies. This permits them to concentrate on the market and not become emotionally involved. Price analysis never allows trend followers to enter at the exact bottom of a trend or exit at the actual top. Trend followers bring in awesome returns because their decisions are ultimately based on one piece of core information: price. In an increasingly uncertain and, these days, downright unfriendly world, it is extremely efficient and effective if our decision-making is based on this singular, uncomplicated, trustworthy truth. The constant onslaught of fundamental data, for example price-earnings ratios, harvest reports, and economic studies, plays into traders' tendencies to make trading more complicated than it needs to be. Follow The Trend Don't attempt to guess how long a trend may go. You cannot. You should not read PR releases and try and speculate just how long the trend should go. Price makes news, not the other way around. A market is going to go where a market is going to go. The concept of price as the trading cue is just too simple for investors to accept. If a stock goes from 15 to 12, a losing investor who examines fundamentals will think maybe it's a better buy. But a winning trend trader will figure he must have been wrong about something and get out. Trend followers are in the moment. They already know that attempting to forecast the beginning or end of a trend is futile. When trends begin, they often times arise from a flat market which doesn't appear to be trending in any direction. The idea is to take small bets early on in a market to see if the trend does indeed mature and get big enough to make money. Really big losses almost never befall a trend follower since he decides to eliminate or reverse his position as soon as the market goes against him. A great deal of little losses are inevitable. The rationale for hanging in is that any price move could be the beginning of a trend, and the periodic big breakout justifies a string of small losses. For lots more instructive trading and investing how to guides take a look at these three wonderful resources: Stock Trading Forecast For Week Beginning March 21 2011 Trading Guide - Think You're A Dumb Dog Investor Great Penny Stocks For Dummies and Idiots Funny Video (Comment on this)
Sunday, March 27th, 2011
10:56 am	Stochastic Divergence Indicator How To The third hottest method of trading using the Stochastic Oscillator is called the Divergence method. More often than not, the momentum changes direction before price. This line is created beside %K to act as a signal or trigger line. If your Stochastic keeps below 20, it means the downtrend is strong. It follows the pace or the momentum of price. One other popular trading method that makes use of the Stochastic Oscillator is termed the Crossover method. Designed by George C. If your Stochastic drops under 20, a stock or market is oversold. Lane also used this oscillator to spot bull and bear set-ups to forecast a future reversal. Lane in the late 1950s, the Stochastic Oscillator is a momentum indicator that reveals the position of the close compared to the high-low range with a set number of periods. When the price of a stock is making new lows but the Stochastic is making new highs, a positive divergence has taken place and it means the price of the stock is likely to jump higher. If the Stochastic continues above 80 it means the uptrend is strong. As a result, bullish and bearish divergences in the Stochastic Oscillator enables you to predict reversals. The aim of this tactic is to find a divergence regarding the price of a stock and the Stochastic Oscillator. Excellent Penny Stocks For Dummies and Idiots Comedy Point and Figure Charting Tutorial For Beginner Traders Point and Figure Charting Lesson For Newbie Stock Traders In case the price of a stock is hitting new highs but the Stochastic is hitting new lows, a negative divergence is taking place and it means the buying price of the stock is likely to drop. Swing traders may choose to increase the sensitivity of the Stochastic Oscillator by using a 5,3 setting which is more desirable for trading fast moving markets. Should the Stochastic climbs above 20, assume an upward correction or the start of a new uptrend. In the event the Stochastic breaks below the 80 level, anticipate a downward correction or the beginning of a new downtrend. Make your Stochastic overlay using the Full Stochastic and a setting of 14 and 3. First establish the greater trend in the stock or market you are trading. If the %K line from below crosses the %D line upwards, this is the buy signal. It was the first, and most important, rule that Lane recognized. The Stochastic provides a buy signal when it breaks above the 20 line. There are various trading methods for use with the Stochastic Oscillator but one of the best is the Overbought Oversold strategy. Buy and sell signals show up when the %K crosses through a 3 period moving average called the %D. (Comment on this)
Saturday, March 26th, 2011
4:18 pm	Point and Figure Charting Tutorial For Beginner Traders For a funny look at P&F analysis head over to point and figure charting Prices fall to a certain level after which reverse because the demand outstripped the supply at this level. Numerous stock chart patterns that may be seen on line charts, bar charts, and candlestick charts can be seen on P&F charts. If prices rise again towards the level at which they retraced before, it's called a double top. A bull trap is a triple top breakout followed by a reversal after only one box is made within the triple top breakout. Triangles form when both the supply and demand for the stock are drying up. The breakout is likely to be due to buy stops being hit just above the resistance level, and the quick reversal suggests lower prices ahead. Each X or O occupies what is known as a box on the chart. A double bottom is comparable, but in reverse. Price is unable to rise but neither are they in a position to fall, there is an equilibrium between your exchanging as is seen through the rising bottoms and also the falling tops that make up the triangle. You can spot support levels on P&F charts by searching for a horizontal row of Os that each mark the foot of their particular columns. The breakdown is possibly due to stop-loss orders or short orders being hit just beneath the support level, and also the quick reversal suggests higher prices ahead. If you're familiar with standard chart analysis, you can think of each column as representing either an uptrend or a downtrend. This implies that the price level is really a more significant section of resistance (area where sellers are prepared to sell the stock and make supply that surpasses demand) than what sometimes appears on the double top. Each chart has a second setting called the Reversal Amount that determines the amount that the stock must move in the alternative direction (down if we are inside a rising column of X's, up for any column of O's) before a reversal occurs. Seeing Resistance Levels A triple top breakout is comparable to a double top breakout except that the price at which the breakout happened is really a price that the chart retraced from two times before. On a P&F chart price motions are combined into either a rising column of X's or a falling column of O's. Seeing Support Levels Double tops and bottoms are the least difficult point and figure patterns to identify and are the inspiration of all other patterns. This stalemate between investors is finally resolved with a double top breakout in the case of a bullish triangle breakout, or with a double bottom breakdown in the case of a bearish triangle breakdown. Each chart has a setting known as the Box Size that's the amount that a stock must move above the top of the current column of X's (or below the bottom of the current column of O's) before another X (or O) is put into that column. Just lately though, as traders try to find possible ways to select stocks, Point and Figure charting has been rediscovered and it is once again growing in popularity. If prices continue to carry through that level, a double top breakout is identified by traders. A double bottom which is the followed by a second double bottom, or three bottoms, each less than the prior is recognized as an descending triple bottom breakdown. Point and Figure chart analysis made it straightforward for someone to maintain a massive number of P&F charts during the days before computers. The idea is the fact that demand is continuing to outpace supply on an ongoing basis. A bear trap is a triple bottom breakdown which is then followed by a reversal after just one box is made within the triple bottom breakdown. P&F chartists could update and evaluate 45 or more stock charts every day. Whenever this reversal threshold is crossed, a brand new column begins right next to the previous one, only moving in the opposite direction. The double bottom breakdown implies that the buyers who were supporting the price aren't able to produce demand that's a lot more than the supply, and price is breaking down. Common P&F Chart Patterns (Comment on this)
Friday, March 25th, 2011
5:41 am	Among The Most Surprisingly Insane Stock Trading Rules Of Many Traders In stock trading, the idea to let your winners ride is a lot more problematic than a lot of investors imagine. To let your winners ride suggests do not freak out over foolish stuff. A trader I know, Steve, sold out of a strong uptrending stock for a 3% gain. The subsequent Monday when trading started, the stock continued to go up. Steve was annoyed that he did not keep the stock a little longer. A part of just how I educate stock traders entails examining their thoughts and their causitive factors of doing things. Had Steve explained that he discovered something on the chart (based in mathematics) that made him choose to take profits, then things would've gone in another way. I asked him what made him sell out of the stock that Friday. He said that he didn't like to hold the stock going into the weekend. Professional traders will often close out positions on a Friday. You're not a market maker either. You don't have a whole lot of bucks at risk. Just remember, the goal is to let your winners ride and cut your losers short. If one makes a rule that you cannot hold a stock over the weekend, then you're not allowing your winners to ride. Steve closed out of a strong uptrending stock for a stupid reason. You can't sell out of stocks for stupid reasons if you wish to let your winners ride. There is likely to be lots of issues that bother you in stock trading. Something that should not bother you is if you ought to hold over the weekend. Making a rule like you're not going to hold any stock over the weekend works for professional traders but it's not going to be right for you. Coming up with rules like that is like attempting to punch your way out of a paper bag while tying up one arm. Don't put arbitrary obstacles in your way like thinking I can only make profits Monday thru Friday but I have to sell on Friday because I cannot hold any stock over the weekend. Numerous investors put a lot of obstacles in their own way. He's also a Christian and so the company needed to be morally ethical. Finally, he had quite a long time horizon therefore it would have to be a stock that he was prepared to hold for around five years. He came to me and wished to understand what I could do to help him be a profitable trader as he wasn't able to make money in the stock market. When he explained to me all the rules he used in his trading I just began laughing. I put my hand on his shoulder and said that he needs to either accept the fact that he's an idiot, or that he'll never make money trading and hence he should get out. Trading is hard enough without tying and arm behind your back, donning only one shoe, and putting on a blind fold. In case you are in a strong uptrendng stock, just chill out and enjoy the ride. That's the best way you will truly be able to let your winners ride. (Comment on this)
Tuesday, March 22nd, 2011
7:29 am	Trading Guide - Are You Currently A Dumb Dog Stock Trader The fact is, it really is canine dumb. This is just what a lot of traders do. All they know is a single market, gold mining stocks for instance, although they have lost money trading in this market, or have overlooked gains in other sectors. They just consistently purchase the same stock or market as the losing trades pile up. Now calm down you gold bugs who troll my video lessons. Most people love to give human emotions to non-human things. In fact, it is a very human thing to do. We have even conceived a word for the exercise of assigning human feelings to every little thing: anthropomorphism. You'll notice investors declare stuff like: she is my favorite stock, or I really like this baby. Once human emotions have been allotted to a stock, harmful attachment to the stock or market arises, and traders will lose money repeatedly. Never ever designate human characteristics or feelings to a stock and grow too attached to it. Check yourself and ask, am I getting to be too emotionally involved with this stock? Do I continue to keep purchasing this stock because it really is making me money or have I developed an unhealthy attachment to this stock influenced by setting emotions to the stock of like, love, baby, and so on. Like the old cliché goes, don't try to beat a dead horse. Let your losers go as fast as you can and get over it. There's a viral video out there that shows a pet dog in Japan still defending his house although the home is completely gone and just the concrete basic foundation remains. This is an example for how trying to make money in the same stock repeatedly makes you look mindless and can truly damage your brokerage account. Think you're a dumb dog trader? This is exactly how a number of amateur investors are. Many people won't move on to a better stock or market simply because they have formed emotional attachments to a stock or market. I have seen investors hold on to a stock that has gone totally worthless and has turned into an empty shell simply because they won't let go of their dream that this stock, their baby, would turn them into a millionaire. Even skilled traders can get caught in this trap by scrutinizing a company's press releases. Bear in mind, press releases aren't news. Even knowledgeable investors quite often overlook this and get psychologically attached to a story stock. But it is not only fundamental analysis that may get a trader falling in love with a stock. Technical analysts can also get caught in this trap by getting attached to their favorite chart pattern which they absolutely love. As the trade moves against them, they hang on to long due to the fact they've formed an attachment to a pattern on the stock chart. Forming psychological attachments to things is part of being human. Constantly ask yourself if you are building an unhealthy psychological attachment to a stock or market. Continually try and keep your emotions at bay when trading. Consider Spock on Star Trek. Now there's a fictional temperament which would make for an excellent stock trader. To read more educational stock market lessons see: Stock Trading Prediction For Week Beginning March 21 2011 Great Penny Stocks For Dummies and Idiots Satire (Comment on this)
Sunday, March 20th, 2011
5:20 pm	Stock Trading Outlook For Trading Week Beginning March 21 2011 Last Sunday, I said that bears had a minor edge starting trading the week of March 14 2011. The Dow is within a weak downtrend. The Dow Jones attempted to retake the 50 day moving average on Friday, but was refused. The S&P 500 shows a sidelines rating. Consequently you ought to be in cash right up until a superior camp, either the bulls or the bears comes forth, and then place your bets with that superior group. It just means there's no crystal-clear trend in either case. The Nasdaq is in a weak downtrend and the Russell 2000 is in a very weak downtrend. The trend of all of the major indices (Dow, S&P 500, Nasdaq, and Russell 2000) sustains my thesis that bears have a minor advantage starting trading next week. This too supports the thesis that bears enjoy a minor advantage starting trading next week. The longer term trend still favors the bulls with 76% of stocks on the NYSE trading above their 200 day moving average. Considering the biggest earthquake ever in Japan, a giant Tsunami wave that murdered over 10,000 people, a nuclear power plant melt down in the world's third largest economy, and war planes bombing Libya, gold should be over $2,500. The very fact it is not is the market providing you with a really obvious message: gold is overbought and there is not a lot of buyers seeking to buy it up here. Silver continues in a strong uptrend. The VIX has been downgraded to a sidelines rating. The VIX measures the amount of put buying on the futures market and so it is an crucial leading indicator. Three weeks ago, I notified you to the point that the VIX was in a very weak uptrend. The pullback was so large, it did technical harm to the delicate VIX very weak uptrend rating. The sidelines rating suggests that the VIX is no longer offering us a trading signal: either bullish or bearish. Relating to the fundamental analysis front, two critical economic indicators are being released in a few days which have the potential to influence the direction of markets. For a lot more Wall Street news and investing ideas check out these links: Fantastic Penny Stocks For Dummies and Suckers Funny Video Stock Investing Trolls (Comment on this)
Saturday, March 19th, 2011
8:54 pm	Wonderful Penny Stocks For Dummies and Suckers Humor The foregoing is a satire followed by commentary on the penny stock publishing sector In the USA. At Penny Stock Fortune and Associates, we would like you to definitely become filthy rich. Do you want to make 999 billion 999 million 999 thousand 999 hundred point 99999 percent trading in penny stocks? I am going to let you in on a significant penny stock fortune hidden secret that me and my partners have spent years and thousands and thousands of dollars leasing super computers running elaborate investing calculations to discover. Yes I will give you this secret, right now, just for viewing this online video. You now might be asking yourself how I will help you cash in on this. What this means for you is large open lot purchases against a funneling dynamic put to call ratio to ascertain the alpha of the sector and its subsequent beta. When the MACD goes positive as a break through of the donchian channel validated by the parabolic sar happens, the volume grows on the breakout as the stock breaks up forming the baseline of the Andrews Pitchfork. Your particulars are often extrapolated within the Eliott C wave until a 1, 2, 3, Eliott A B wave forms against a Fibonacci retracement all within the grand cycle. At Penny Stock Fortunes and Associates, we may not be the best at clearly explaining things because we are too busy making you money. Simply buy our top secret penny stock picks and make certain to pump our penny stock picks to all your friends on penny stock message forums, Twitter, and Metacafe. Muhahaha... Penny stocks are among the worst investments you possibly can make. In fact, I wouldn't even refer to them as investments. There's a good reason a stock is traded within the pink sheets or OTCBB markets. These markets do not have investor safeguard regulations in place such as the timely and accurate filing of financial reports. An organization is a penny stock for a good reason: it sucks. I have been the sufferer of a penny stock fraud in a business called Plasticon. The press announcements were bald flat out fabrications. There was liar video clips and also fake attorney certifications of patents. There were several reverse shell companies created in which the funds invested in one stock was transferred to another stock and then that other stock was diluted to enrich the owners. And guys, the SEC can't help you either. They'll seize the money and usually you will not see a penny. I made repeated phone calls to SEC agents in two different scams that I was a victim of and never once did I get any money. You simply can't trust in the SEC to return your money in case you are ripped off in a penny stock. The SEC only catches a small percentage of the total number of penny stock pump and dump ripoffs. The ripoffs are so widespread that I have come to the conclusion that only dummies put money into penny stocks. (Comment on this)
7:22 am	Trading Trolls A troll sent me a comment about an earlier video where I applauded making 5% in a stock after holding for four weeks. The troll said, "I do not see why you're so pleased making 5% in a stock after holding it for 4 weeks. Ohhhh... big bucks, do not spend it all in one place." Maxed cliché aside, this troll has to learn a vital fact about investing. This is not Hollywood. Stock investing, I mean authentic profitable stock trading is little gains day in and day out, week in and week out, month in and month out, year in and year out. Whatever false idea Hollywood has put in your head concerning the exclusive and thrilling life of being a stock trader, you must let it go. You aren't going to become rich by picking out the next Target or Google. You have to quit trying to hit a home run with every stock you buy. Simply concentrate on getting a base hit. How's that for a worn-out cliché? Back to the troll which was making fun of my 5% gain in 4 weeks trade. We will crunch the numbers. If you start out with just $2,000 in your trading account and make a 5% gain a month, in 1 year your $2,000 will turn into $3,200. In 4 years, your $2,000 will turn into $13,107. In reality, starting out with $2,000 in your trading account, if you make just 5% a month, your initial $2,000 will turn into $2.3 million dollars after 15 years! The fact is that most amateur traders feel that making 5% every thirty days in the stock market is not very good. Amateurs have fantasies of earning millions of dollars quickly. Thus they are suckers to penny stock scams that advertise one-thousand percent gains and more. In reality, ripoffs involving pump and dump low liquidity stocks are all over the Internet and are among the most repeated litigation by the SEC. Don't misunderstand me. There are lots of strategies to make money stock trading. The one thing that all the numerous ways of making money in the stock market have in common is they all take many years. Any person who offers you easy and quick money in the stock market is somebody you should have absolutely nothing to do with. Everybody who trades for a living has something in common. They've built up their fortune over decades. Real profitable stock trading is extremely dull. It can't be made into an enjoyable motion picture or novel. There's nothing prestigious or romantic about stock trading. It's a bare knuckles, dog eat dog brawl. (Comment on this)