Why Trend Trading Is A Winning Trading Strategy

Written on:April 6, 2013
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trend tradingIf you’ve been reading this trading blog for any length of time, you already know that I am a big fan of simple technical analysis strategies that work.

While there is a plethora of indicators that technical traders frequently get obsessed with, I’ve always believed that a simple approach to trading can be the most profitable strategy because it enables one to focus on the only thing that really matters in the end: the direction of the price.

Although reliable market timing techniques help you to know when to be in and when to be out of the markets, it’s the simple trend trading strategies that make sure you’re on the right side of the market when your money is at work in the stock market. Read more…

Apple Shares Are Cheap, But Not Cheap Enough ($AAPL)

Written on:March 27, 2013
apple outta here

In a January 13 post on this trading blog, we pointed out why shares of Apple ($AAPL) were technically in danger of moving lower. Since that date, $AAPL has indeed fallen substantially. But now the question on the minds of many investors and traders is whether or not $AAPL stock is at or near a significant bottom. In this article, the analyst argues that Apple shares are indeed cheap now, but…

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Short Selling “Head and Shoulders” Setup – Dicks Sporting Goods ($DKS)

Written on:February 26, 2013
Dick's Sporting Goods

After the stock market sold off sharply on February 20 and 21 (last Wednesday and Thursday), it became very important to assess the subsequent price action that immediately followed in the subsequent days. Given the sharp losses of those two days within the context of the market’s current uptrend, the bounce that came the following day was not surprising. However, the problem is that the bounce occurred on lighter volume,…

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How to Detect Trend Reversals for Profitable Trades by Dr. Gandevani

Written on:January 19, 2013
Trendline

Editor’s comment: Perhaps my favorite type of of technical trade setup for short-term momentum trading is the trend reversal setup because these kinds of trades generally give the trader a positive reward-risk ratio if the timing of the stock market is right. In this article, Dr. Ned Gandevani clearly explains a methodology for determining the most ideal timeframe to buy an ETF or stock that is reversing its technical trend….

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How We Gained 10% Over A 3-Day Holding Period In Onyx Pharmaceuticals ($ONXX)

Written on:January 13, 2013
onxx

Editor’s note: I think this article is a great, educational example of how to use a simple system for swing trading. Many active traders believe a complex technical trading strategy is the best way to profit from trading, but I believe the most effective trading methodology is a simple one. How We Gained 10% Over A 3-Day Holding Period In Onyx Pharmaceuticals ($ONXX) (via Morpheus Trading Group) One of the main…

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Technical Analysis for Dummies

Written on:January 12, 2013
Gann - Father of Technical Analysis

If you do not possess experience in technical trading, and how it will benefit your swing trading, be sure to check out this brief stock market video for an excellent way to learn swing trading. Technical Analysis for Dummies (via NewsLook) Hima Reddy, author of ‘The Trading Methodologies of W.D. Gann,’ breaks down how to trade using technical analysis into laymen terms.

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The Trouble with Tech & the Dethroning of Darlings

Written on:January 12, 2013
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The Trouble with Tech & the Dethroning of Darlings (via Market Shadows) The Trouble with Tech & the Dethroning of Darlings By Ilene Sometimes, an investment strategy is more logical than successful in practice. For example, 10 years ago, investing in the personal computer space seemed like a great way to profit from progress. The three industry leaders, Microsoft (MSFT…

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How To Identify A Low-Risk Short Selling Swing Trade Setup ($IWM)

Written on:November 28, 2012
Daily chart of $IWM

Given the multi-month downtrend of the small-cap iShares Russell 2000 Index ETF ($IWM), there is now an abundance of overhead supply the ETF must contend with. Note on the chart below that $IWM formed a bearish shooting star candlestick yesterday (November 27), after failing to break out above resistance of its multi-month downtrend line from the September 2012 high. This also occurred after $IWM probed above (“overcut”) its 200-day moving…

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How Stock Market Timing Helps Ensure A Secure Retirement

Written on:November 4, 2012
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Investing in the stock market is one of the many ways people use as their approach for earnings in preparation for their retirement. Aside from providing the assurance of sufficient funds for retirement, another concern is in financing is the rising expenditures for their welfare. Several factors must be considered when investing in the stock market, and novices to the field of stock market investing should be aware of the…

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The Stock Market Simplified

Written on:October 30, 2012
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Let’s try to simplify something a lot of people, including myself, have difficulty understanding: the stock market. The stock market, also termed the equity market, is a place wherein different companies buy and sell their stocks, bonds and derivatives at an agreed price. The stock market trading strategies differs from other markets for it is not a physical place you can plant your feet on, but rather a network of different…

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