Author Archive
Posted in April 22nd, 2010
More investors are turning to candlestick charts for determining market direction. See this week’s audio/video review!
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Posted in December 23rd, 2009
Trading volatility; an investing method typically employed in stock option trading, measures the risk of an option over time. In theory, the chances of an instrument’s price being further out from the current price increases over time. Thus, the volatility must be taken into account when selecting an option trade.
Three CBOE volatility indexes
1) The [...]
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Posted in October 12th, 2009
Support and resistance are concepts that go hand-in-hand with technical analysis . Both are terms that are used by technical traders and they refer to the specific price points that have historically prevented trades from pushing the price of an underlying security, such as stock, in a specific direction.
When learning how to read stock charts [...]
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Posted in October 8th, 2009
Trading Strategies for ETFs
Each major stock index has exchange traded funds based on them including the American Stock Exchange (AMEX), the Dow Jones Industrial Average, the Standard and Poor’s 500 Index, and the NASDAQ composite. ETF funds are securities that track on an index, a commodity, or a basket of assets like an index fund [...]
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Posted in October 5th, 2009
The bullish mat hold candlestick is a strong continuation pattern that occurs during an uptrend. This candlestick pattern is similar to the rising three method in that is begins with a long white candle in an uptrend and it is then followed by three small real bodies that indicate a short downtrend. The only difference [...]
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Posted in September 28th, 2009
What are bear markets?
When learning about the stock market it is important to understand the different types of markets that can occur. Bear markets occur when the prices for securities are falling and are expected to continue to fall. While this market is most often is used in reference to the stock market, it can [...]
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Posted in September 24th, 2009
The falling three method candlestick pattern is a bearish continuation pattern and it is the opposite of the rising three method candlestick pattern. This pattern indicates to traders that a bearish trend is continuing even after there is a temporary stop in trading. This pattern typically occurs after a downtrend and it ideally consists of [...]
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Posted in September 21st, 2009
ETF Investing – Hedge Investments
Long Term Hedging
Many investors look to exchange traded funds to help them diversify their portfolio by diversifying their overall holdings. This exposes the portfolio to industries and sectors that are represented in the underling index. This diversification spreads the risk in a portfolio across a broad range or industries and sectors [...]
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Posted in September 14th, 2009
Shorting Stock for Beginners
Shorting stock occurs when the investor borrows stock to sell with the expectation that the price of that stock will drop. The investor then buys the stock back to replace it at a cheaper price. Clear as mud? Let’s explain further. When an investor goes long on an investment, it means that [...]
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Posted in September 10th, 2009
ETF’s vs. Mutual Funds
In today’s article we discuss the basics of both exchange traded funds and mutual funds as well as the advantages of both types as funds. As explained in recent articles ETF funds are simply investment portfolios that consist of multiple securities that trade like stocks. These securities are designed to track the [...]
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