In this article I will show that there is the possibility of a profitable edge when trading breakout stocks on high volume days.
However, the edge requires an ability to foresee such high volume in advance. This is no easy task but the data suggests it could be an interesting line for future research. Read more »
Stocks don’t move in a single direction and if you have enough reason to believe that share prices are about to go down, then there are ways to profit from betting against them. However, betting against stocks is much trickier compared to going long and there are several factors to consider before you short. Read more »
Tuesday morning I sent out a tweet to say that we may have seen a top in the stock market. Today, the S&P 500 has just closed down by 1.20%, it’s biggest fall in over 100 days. Read more »
Last week saw the main stock averages continue their upward price run with the S&P 500, Dow Jones Industrial Average and Nasdaq all posting all-time record highs. Read more »
If stock picking was as simple as ticking off a few boxes it would be too easy.
However, in the book Thinking Fast and Slow, Nobel Prize winner Daniel Kahneman suggests that simple checklists and algorithms are often more effective than complex models. Read more »
In this article I look at the advantages of a barbell trading strategy and then I put the strategy to the test using historical stock data. As you will see there are some pros and cons to using this technique.
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Welcome to a new weekly segment where I take a look at recent trade ideas from across the web and give some of my own picks too. This week, it’s all about Trump’s inauguration and earnings season. Keep reading for some of the best trade ideas that I’ve found. Read more »
Although I love to test trading systems and write about new trading ideas the last couple of months I have been doing a lot of reading about Charlie Munger and his mental models.
Mental models, in essence, are ideas or concepts that help us understand how the world works. Concepts such as the confirmation bias, availability bias, hindsight bias and regression to the mean.
I’ve found that learning about these concepts can really help improve all areas of your life including trading and investing. Read more »
You don’t need to spend a lot of money to access good trading information. None of the stock trading courses on this page are very expensive yet they are far better than 99% of courses out there.
Courses that cost thousands of dollars do not contain any type of holy grail system that is going to transform you into a winning trader overnight! The only answer is to work hard, work on yourself and find your edge. Read more »
No matter your political view there is no doubt that the financial markets are more nervous about a Trump victory than a Clinton win. This is exemplified by recent price movements in safe haven assets like gold, the US dollar and stocks.
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