If I have learned anything in trading, it is the importance of patience with the markets. We need to be patient before and after we are in an active position in the markets.

We are taught to buy in demand zones and sell in supply zones as the most effective way to trade. This is the simple part of trading, following rules.

Last week while I was teaching a class, a student asked me how they should know whether or not to take a particular trade.

A student recently emailed me to ask if I knew of an indicator or tool that could identify high quality trading environments versus choppy, unpredictable ones.

Most investors have been told to diversify their portfolio. They think if they buy companies that are in different industries that they will be covered if there is some adversity in the markets.

When facing trading, either intraday or even for longer term positions, one of the challenges we face is what stocks to trade.

Many traders do not use stop loss orders for fear that they will be stopped out only to see the price move in their favor once they are out.

Continuing on in my discussion from last week, I plan to dissect more of the Ichimoku charting technique and show the practical application of it.

When trading, we want to get complete information and we want it quickly. A type of charting style that can assist us in making those decisions is the Ichimoku chart, also known as a cloud chart.

In looking at the trend and certain indicators, it looks as though the markets are in a stage three consolidation before a breakdown.

On a recent flight, I was asked "Can you sum up what you do in one sentence that a lay person could understand?"

When technicians chart using Point and Figure charts, they are doing so to identify and stay in longer trends.