One of the great things about the market is, the markets don’t care about you. The market doesn’t care what color you are. The markets don’t care if you are short or tall. They don’t care about anything. They don’t care whether you leave or stay… I met the guy who wrote this best seller […]
A chart pattern is a visual representation of the actions of buyers and sellers in a market recorded in price action. A chart is not predictive of the future but shows what is happening with buyers and sellers in the present moment.The price action on a chart gives a trader signals about the current trend […]
On a bar chart an inside bar is a single bar which is smaller than the previous one and within the range of the highest price and lowest price of the last price bar. An inside bar can be located in relation to anywhere inside the last bar, the top, the middle or at the […]
Moving averages are technical trading tools for capturing trends in the stock market. Moving averages are price action filters that can identify a trend by which side of a moving average price is trading on. A vertical moving average can show that a chart is in a trend while a horizontal moving average can show […]
What is the best moving average crossover for swing trading? My favorite moving average crossover for swing trading that I have also confirmed through backtesting on the momentum names on my watchlist is the 5 day exponential moving average / 20 day exponential moving average crossover on the daily chart. I call this bullish crossover […]
There is a common saying on Wall Street “Let winners run and cut losers short.” This quote tries to express the principle of creating big wins or small losses. Creating a high risk/reward ratio through the use of trailing stops for profitable trades and stop losses for unprofitable trades is the foundation of profitable trading. […]
Before you can trade you must first have a trading plan. A trading plan is written while the market is closed to tell you what to do when the market is open. A trading plan tells you how to specifically execute your trading system in real time with real money. A trading plan forces discipline […]
Smart money in the financial markets is considered to be capital traded or invested by experienced and educated professionals that are connected to better research on fundamentals or access to higher speed technology that gives them a technical edge over retail traders. There is little evidence to support the smart money edge as the majority […]
Profitable trading is not about opinions, not about a prediction, or even great stock tips or picks. Profitable trading is all about math, making more money on profitable trades than you lose on unprofitable trades. How you do this is the details. Trading without understanding the math creates randomness and luck in your process. Understanding […]
If the stock market is in an up trend trade primarily on the long side and in a down trend short rallies primarily. The best way to lose money in the stock market is to fight the prevailing trend. Do not trade without a detailed trading plan covering entries, exits, position sizing, maximum positions at […]