Do Not Buy a Stock Because the Price is Low

Buying a stock just because the price is low is often a risky strategy. However, there are situations where a lower price can be one of the selection factors. The term “oversold” can refer to a technical condition with an individual stock, or it can refer to a situation which causes a stock to drop [...]

Never Fight The Fed

Interest rates go up, stock prices go down. Interest rates go down, stock prices go up. These are simple facts. Most stock prices tend to go to opposite direction of interest rates. Most corporations have to borrow some money; when they borrow money, they have to pay interest.The interest they must pay comes from the [...]

Find Clarity….Then Enter a Trade

Risk management is as important when opening trades as it is when exiting trades. Once started on the wrong path, mistakes and errors seem to follow naturally, setting in motion an emotionally driven comedy of errors that results in inevitable loses. Positions that are opened based on confusion or a lack of clarity generally result [...]

Trading on the news

The news is one of the greatest single elements affecting free trade. As a medium, it carries both fundamental and technical information about all markets, directly or indirectly, and is indispensable. If not objective, the news services could materially alter any opinion by the inclusion or omission of relevant information. The impact of news is [...]

Identifying Trends and Why they happen

One of the most powerful methods in day trading is identifying and trading with the underlying trend. The underlying trend represents the gravitational pull of the market. The trend is the true force behind price action and sector momentum. It carries everything in its path ith it.
Technology has made identifying trends easier than ever. The [...]

Signals to catch a trend.

There are four signals that every trader can use to isolate and catch a trend. These signals are simple in nature. Their power resides in their objectivity and in their ease of use. As a market maker, it is crucial to be able to make a split-second decision as to whether the short-term trend is [...]