While teaching a Professional Trader course in Minneapolis this week, I was demonstrating a technique that can predict with increased probability the morning reversal of the S&P 500 Index due to arbitrage opportunities.
A couple of weeks ago, I wrote about how the majority of mutual and hedge funds have been underperforming the broad market.
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.
While teaching a Professional Futures Course in San Jose last week, I received lots of compliments from returning students on the high quality of our more recently published course material.
In the investing world, we usually refer to professional money managers as the ?smart money.? However, recent reports show that trusting your hard-earned capital to mutual fund managers is not the wisest move.
Volume can give many clues as to the strength of price movement and even information as to the thoughts and actions of the masses involved in a security.
A common mistake that novice traders and investors make is to add to their losers. I have addressed this problem before and explained why it is not a profitable strategy in the long term. However, since we cannot add to losers, what about adding to our winning trades?
I have spoken with many new options traders and realized they do not have a full understanding of how options pricing works. Most traders trade the equivalent of a lottery ticket.
To be a successful trader or investor, you need to hold yourself accountable for the positions that you take in the markets. Wherever you get your information, you must make your own independent analysis.
In our Professional Trader courses at Online Trading Academy, we teach our students to stay away from the danger zones of the market. One of these danger zones includes the opening 15-20 minutes of the trading day.
I like to use this forum to address some common student questions that I hear. In our courses, we teach students how to identify the highest probability zones in which to enter or exit trades.
We are nearing the end of the calendar year and also some supply zones on the major equity indexes.