When we are trying to learn a new skill, we usually try to copy the actions of someone who is already successful in that field. When it comes to making money in the markets, we can easily see that the institutional traders are the big winners on a consistent basis.
There is a lot of talk about Apple's stock in the markets lately. The stock has an enormous market cap and is a large part of many portfolios, either directly or indirectly as a part of a mutual fund
As a Chartered Market Technician, I get a lot of questions about technical indicators and how they work.
A lot of struggling traders will try to switch from trading stocks to trading another asset class. They do this because they feel that if they cannot successfully trade stocks, they may have better luck with trading forex, options, or futures. Unfortunately, they find that they can lose just as much money or even more by trading those assets instead of stocks.
There are a lot of parallels we can draw from things we see in our everyday lives and trading. I am writing this article as I am flying over North America on a commercial flight. I looked out the window and was reminded of something that one of my instructors mentioned to me in order to understand price movement better.
A few weeks ago, the web was abuzz about a Goldman Sachs executive who posted his resignation in the New York Times. He said he had to resign because the firm's goals were no longer aligned with his own personal ideals.
There are a lot of gaps on stocks listed in the markets. This is partially due to the nature of how the opening prices are determined.
Looking for and trading chart patterns are very popular. In nearly every trading book you can find a section on how to trade these chart patterns.
Many traders still rely on fundamental analysis in order to select their stocks to trade. While I do believe that fundamental analysis can be useful, it is not needed for short term trading.
A student emailed me recently and asked about the usefulness of the market depth window on his trading platform.
Looking for and trading chart patterns are very popular. In nearly every trading book you can find a section on how to trade these chart patterns.
Many traders still rely on fundamental analysis in order to select their stocks to trade. While I do believe that fundamental analysis can be useful, it is not needed for short term trading.