Traders frequently tell me that knowing when to sell a winning breakout trade is one of the more challenging aspects of having a consistently profitable trading strategy. Sell too soon and you fight the feeling of regret while the stock continues cruising higher. Get too greedy and try (typically in vein) to catch the absolute top […]
When I was a new trader and missed the chance to buy the breakout of a hot stock I had my eyes on, I used to get rather upset and frustrated with myself. After all, I felt I was truly missing out on a great opportunity to profit from momentum swing trading. But I eventually learned […]
When I was a new trader many years ago, I hated being wrong with my market analysis and stock picks. I was also quite reluctant to admit when I was wrong. But I eventually learned there is absolutely nothing wrong with being wrong, just as long as it is done the right way. Whew! Got that? […]
Not surprisingly, stocks moving up while I suggested the possibility of them moving down led to an assortment of emails from readers who were quick to point out how “wrong” my analysis was. But here’s the amusing irony of the situation. The act of suggesting I am “wrong” because the stock market has not yet fallen apart is actually wrong because…
For the past five weeks, the S&P 500 and NASDAQ Composite have been stuck in choppy, sideways ranges. However, the good news is my top leading technical indicator is strongly hinting that stocks may finally be ready to make a significant, definitive move in the coming days (albeit to the downside). Here’s a few short selling stock picks for trading such a downside move…
Although the S&P 500 is on the verge of breaking out to a new high, the NASDAQ remains stuck below its 50-day moving average. This divergence has created choppy trading conditions in recent weeks that lead us to believe the best plan of action right now is to shift into “SOH mode” (sitting on hands).
Whenever I receive a question I think will be beneficial to other traders who may be wondering the same thing, I share the question and our reply here on the trading blog. In this post, a subscriber is seeking advice on how to size positions within his portfolio, and also wondering about the importance of share price…
Although $GLD is still in a downtrend, there are now 2 main technical signals and 1 other point that give me strong reason to believe gold is poised for a substantial, intermediate to long-term rally and/or bullish trend reversal…
Thanks to the bounce off the April 15 lows, followed by last week’s stalling action, now is the right time to sell short $QQQ. Here are 3 objective, “no nonsense” reasons why it is finally time to get back on the short side of the market (at least in the NASDAQ).
Since bouncing off their April 11 lows, both the NASDAQ and S&P 500 have scored six straight days of gains. To the casual observer lacking any knowledge of technical analysis, it may appear as though the market pullback of the past month is over and stocks are once again working their way back to new […]
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