The Trend

How to Use Full Stochastics in Your Trading

Fear can destroy a stock in seconds.

But it can also lead to quite a bit of opportunity.

Look at Coca-Cola (KO), for example in late February 2019. 

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These Technical Indicators are Musts for Your Trading Plan

Every time you trade a stock, it’s essential that you understand the psychology of the buyers and seller.  If not, you begin to run the risk of losing money.

That’s the last thing any of us want to do.

So, we need to understand if the bulls have gotten ridiculously, and unsustainably bullish.  And we need to understand if the bears have begun to lose their minds after a sell-off.

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How to Use Fibonacci for Entries and Exits

One of the best ways to trade stocks is by spotting support and resistance points.

It’s why so many traders use Fibonacci Retracement Lines – which is based on the belief that stocks will retrace prior moves. However, when it comes to Fibonacci, we’re not just looking for double, and triple tops, or bottoms. We’re looking at what happens at key retracement levels set at retracement levels of 23.6%, 38.2%, 50%, 61.8%, and 76.4%.

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Technical Analysis: RSI Can Lead to 80% Success

Traders are often told to buy excessive fear or greed.

Unfortunately, many aren’t aware of when to actually pull the trigger, or realize when fear or greed have gotten way out of control.

But there’s a simple way to know exactly when to buy and when to sell.

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Using the RSI Indicator Correctly Can Increase Your Odds of Success

Of the dozens of indicators on the market, one of my personal favorites is Relative Strength (RSI), a momentum oscillator that measures the speed and change of price movements of a stock. The closer RSI gets to its 30-line, the more oversold the stock is considered to be. The closer RSI gets to its 70-line, the more overbought the stock is considered to be. 

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A Cheaper, Simpler Way to Earn More Money from your Average Stock

You may have heard that Options are scary, dangerous, or even too risky.

Trust me.  I’ve heard so many excuses my head spins from it.

But they’re not difficult at all. In fact, they offer you greater flexibility and leverage than your average stock. In addition, you’re using an option just as you would with a stock to speculate, for aggressive growth, and income. 

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Engulfing Candlesticks: How to Spot Them and What They Mean

To the average trader, candlestick patterns are a bunch of crosses and odd shapes with bizarre names, like the three black crows, or the abandoned baby bottom. 

But as odd as they may sound, they can provide powerful insight into direction.

For example, one of the oddest ones is the doji cross. But if you spot one of these at top or bottom of trend, you may have uncovered an opportunity to trade a trend reversal. The profit stars, more commonly known as dojis, are commanding reversal signals. These are formed when the candlestick opens and closes at the same level, implying indecision in the stock price.

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A Sure Way to Know When to Sell High

Buy low, sell high -- it’s an easy rule to follow. 

Unfortunately, selling is often the hardest part. 

“Jeez, if only I held that stock for one more day.  I could have been up another $2,500” is often the thought process. What we fail to consider is that we made money. We accomplished the initial goal. Better yet, we didn’t lose anything.

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How the Kelly Rule Could Save You Thousands

By now, you’ve heard the expression, “don’t put all your eggs in one basket.”

The same holds true with stocks. 

If I risk too much on one trade and it goes against me, I’ve just made a potential mess of my portfolio. Or let’s say you have a $100,000 portfolio, and you decide to risk 10% of that per trade. If your next 10 trades are now losers, you just wiped out your full account. Bad move.

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One of the Easiest Ways to Spot Trading Opportunities

Fear can destroy a stock in seconds.

But it can also create a wealth of opportunity if you know when to buy it. In fact, it’s how investors like Warren Buffett, Sir John Templeton, and Baron Rothschild made their money.

Each of them subscribed to fundamental analysis to do so.

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The Importance of the Money Flow Index (MFI)

When it comes to trading, one of the best ways to tell what’s happening is by paying attention to the flow of money in and out of a stock. 

Surely, none of us want to buy a stock if money is flowing out, right? 

Instead, we want to buy if we’re seeing money flow in, or short if we begin to see signs that money is about to start flowing out of a stock.

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How the RSI Can Lead to 80% Success Rate in Trading

Traders are often told to buy excessive fear or greed.

Unfortunately, many aren’t aware of when to actually pull the trigger, or realize when fear or greed have gotten way out of control.

But there’s a simple way to know exactly when to buy and when to sell.

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How to Identify Flag and Pennant Setups

Once you begin to understand technical analysis, you’re literally looking at a consolidated view of the very forces of supply and demand – the two key forces that drive stocks. 

We’ve already discussed some of the most powerful and most used patterns, like Bollinger Bands, Fibonacci retracements, relative strength, head and shoulder patterns, breakouts, and even how to use candlesticks.

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Trading the J-Hook Continuation Pattern

Technical analysts attempt to predict direction by studying past price action and charts. And understandably, there are critics. In fact, some see it a pseudo-nonsense. 

Forbes, for example, says it’s fundamentally flawed.

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Five Simple Ways to Protect Your Portfolio from Volatility

For many, it was one of the most exciting times in history to be an investor.

Stocks soared to new highs. Investors poured money into stocks on an improving economy.  

Investors couldn’t lose. 

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How Ransomware Creates Opportunity

We weren’t prepared.

And it’s very likely, we’re won’t be ready for the next one.

In early May 2017, it only took hours before 200,000 companies, hospitals, government agencies, and organization in more than 150 countries found their computer files held for ransom.

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How to Use the Chaikin Oscillator to Analyze Markets

Any time you use technical analysis, confirmation is essential.

If you’re not willing to confirm, you’re doing yourself a great disservice. In fact, at no time will I ever just use Bollinger Bands (2,20), MACD, relative strength, or Williams’ R% alone.

That’s an amateur, foolish move.

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