Watching a trade move swiftly into profit then reverse back can be a painful experience. Psychologically, these are the moments that can cause you to go on ‘tilt’ and abandon your trading plan altogether. When I first started trading I remember jumping on board fast trends in the FTSE only to see them wiped out […]
Microcap stocks are great for day traders and swing traders because of their volatility. But I wanted to know how well they perform on longer timeframes. In this article we analyse a decade of performance data to see what you can expect from investing in microcap stocks. Data Preparation To do this analysis we will […]
The double top pattern is a chart formation consisting of two consecutive price peaks that leads to a bearish reversal. For years, traders have claimed that the double top is a high probability short setup. This is because a double top pattern signifies that bulls are having trouble pushing the price past the prior high. […]
As the long term charts on this page show, stock markets can go for lengthy periods with poor returns. Investors should utilise a diversified approach and remember to reinvest dividends.
Before you start trading it’s important to be prepared for a long road ahead. Even if you’re born with a natural talent you will still face a number of obstacles that you will need to overcome to be successful. 1. Do You Have Enough Capital? Unfortunately the most passionate new traders are often the least […]
A reader asked about trading divergence so I thought I would look into it. Searching the web I found many articles that claim divergence trading is an effective way to trade stocks. However, there is very little empirical evidence provided. In this article we test several different divergence strategies and we compare our results to […]
The backbone of personal finance is to save more than you spend and invest the proceeds. The most common advice is to put your money into cheap index funds each month with a simple allocation split. But what if you want to try something more adventurous? Index investing may only provide returns of six or […]
There’s a lot of conflicting information on the web when it comes to stop losses. Recently I saw a YouTube video explaining that professional traders don’t use stop losses because doing so alerts market makers and algorithms to where their orders are. This is mostly nonsense especially in liquid markets with thick order books. The […]
Two new courses have today been added to our program designed to help you learn Amibroker and build your first Amibroker trading system. They are Mastering Amibroker AFL and Build A Professional Trading System In Amibroker. These courses are also included in our bundle Marwood Research – Access All Areas.
RSI is one of the most popular technical indicators among quant traders, particularly the 2-period and 4-period RSI. Previous analysis and articles have shown how RSI(2) maintained a strong edge in stocks through most of the 2000s. The MFI indicator (money flow index) is similar to RSI but incorporates volume as well. MFI is not […]