I must admit that I have felt the urge to buy certain stocks when I see them down 20-40% from their peak. I believe most of us suffer from a flawed human instinct that drives us to buy simply because a stock has “fallen a lot.” Sometimes you get lucky, but just as often it [...]
I commonly hear from fund managers that “small investors are nervous” but that they are confident in the bull market. They are confident because they are “pros” and know how to spot a buying opportunity. The poor little guy doesn’t have the psychological training to buy the dip like they do.
When I hear the [...]
I’ll be away for a week or so for an extended memorial day trip. I may make a post or two while I’m gone, but I won’t be responding in the comments section. Wishing everyone a great holiday.
On Sunday, I wrote that I thought there was a good chance of a countertrend rally. It means I believe the primary trend is lower. I already consider the emerging markets in bear mode and the US markets are on the brink.
As I see it, there are two possibilities from here. We’ll have this [...]
Tonight, I’ve scanned a few charts just to double check that I’m not missing any opportunities. Here are some charts and some observations.
This chart of $USDUPX (which is heavily weighted with EURUSD) shows what is called a “pipe top.” Notice the high on 5/18 and 5/19 are the same and that 5/19 substantially retraces [...]
With the markets plunging, there is a renewed interest in trading short. Most investment books do not do a great job describing the risks of selling short. Often, the book will tell you that short selling is dangerous because the risk is unlimited. When you a buy a stock, only your principal is at risk. [...]
After the flash crash, I wrote a short post titled Stop Out Regret. To those that got stopped out at a bad price, I mentioned:
Today it looks like the market is going to rocket out of the gates frustrating those that were stopped out yesterday even more. But, let’s see how you are doing in [...]
Yesterday I wrote a post about countertrend trading. A reader asked for help identifying the primary trend. While I cannot cover that topic in a single post, I believe I can offer the basic building blocks on where to start.
The time period I typically trade is several weeks or months. I generally do not [...]
If you are not using Google’s Public DNS Service, this post might just be the best 2 minutes of your day. In short, using the Public DNS Service will greatly increase the speed of your Internet connection. Following the instructions from the link above, you simply need to change your DNS settings to 8.8.8.8 and [...]
My prior post was titled “if you dare.” The point of the post was to emphasize that you should always know before a trade is placed whether the trade is with the trend or against the trend. This post begs the question of how do you define trend direction? An entire series of posts could [...]