The One Surefire Pattern for Massive Declines

Tech stocks in 2000. Gold in 2011. Cryptocurrencies in 2017. Pot stocks in 2018. They all followed the same pattern. They had massive gains. They started from small rises, but over time, they started to rise at a faster and faster rate. Speculation and greed took over. Any attempt to curb prices on the way up were swamped with buy orders instead. Along the way, a parabolic chart pattern started to unfold. That’s a tough pattern to trade—once every investor who wants in has gotten in, early investors reap large rewards. Once sellers start to outweigh buyers, the prices deflate near...
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Catch These Patterns for the Best Day Trading Profits

Most chart patterns can appear over any timeframe. But a number of unusual-looking patterns often take place over a shorter period of time, such as a day or an hour, or even less. These patterns may not look like anything at first, compared to typical continuation or reversal patterns, but they can lead to powerful returns in a very short amount of time as they unfold. From the oft-occurring ABCD trade to the cup-and-handle to flag patterns, these trades are perfect for jumping in and out of stocks and foreign currencies in the span of a few hours. These patterns show what traders...
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Are Your Charts Hiding Profits From You?

Charts can provide plenty of profitable trading patterns time and again. But they can also be deceiving. That’s because most charts don’t share key data. It can tell you a price point on a given day—which is handy. But there’s more to a price chart than price. For instance, if a stock keeps moving higher day after day, it may look like a good trade. But if it’s bouncing around during trading hours and only barely heading higher, it may not look like the slam dunk that it could be. To find these extreme intra-day moves, and to get an idea of where the bulk of the trading money i...
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Recognize When to Expect a Flat Trade

Most folks just think of investments as things that go up or down (and even then hopefully just up). But the fact of the matter is, any asset can have a long period of time where it trades in a sideways range, bouncing between a high and low. Recognizing these ranges from a chart pattern is a good way to find short-term trades. It may not be the big grand slam of catching a major move up or down, but it can give you consistent profits time and again. These types of patterns occur in the markets all the time. They’re known as consolidation patterns, and they tend to keep a position...
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Nothing Lasts Forever

There’s a great old saying on Wall Street: The trend is your friend. But what happens when the trend ends? After all, nothing lasts forever. That’s when things can become troublesome for investors. At least, for those who don’t know the signs. That’s because a stock’s pattern can give you a clue that a long-running trend is about to end. And whether that means a stock that’s been going up is about to go down, or a declining stock is about to rally. This is called a reversal pattern. And being able to catch one successfully is one way to grow and preserve your wealth—in any market ...
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Wall Street’s Wisest Saying

There’s a great old saying on Wall Street: The trend is your friend. That’s especially true if you want to trade in the options market, where you have a limited amount of time for a trade to play out. Yet many investors, focused on a company’s fundamentals, don’t think about trends at all. It’s a critical skill for any investor—but it’s crucial for shorter and more leveraged trades like those in the options market. That’s why it’s important to consider all the factors that can cause a company’s share price to rise or fall. For longer periods, the fundamentals definitely matter. But f...
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Scouting Out Your Next Big Trading Win

Trading can be tough for many reasons. But just as a general fighting a war may send on scouts, you too can scout out the options market for the best possible trades. Understanding how a company’s options usually move can prepare you to find moments where they’re making unusual moves. And by looking at options with unusual activity, you can get an idea of where larger investors in the options market are placing their bets. These larger traders—the so-called “Smart Money” on Wall Street— may not make huge profits, but they have a great track record of being right far more than wrong. ...
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Using The Options Market to Find the Next Big Trade

One of the hardest things in investing is finding a winning trade. That’s especially true when looking for short-term trades that are ideal for investing with options. Fortunately, there’s a way to use the options market itself to find such winning trades. How? By focusing on unusual options activity. When big money moves in the relatively small options market, it’s incredibly visible. It shows traders exactly which stocks are likely to make big moves – up or down. But that’s not all. Thanks to the options market, investors can also see where unusual moves are happening specifically ...
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Using Options For Modest, but Consistent Gains

Most options investors screw it up. They may just buy a call option and hope a stock will rally further, leading to huge profits. Or they buy a put and hope a company immediately starts filing for Chapter 11. The fact of the matter is, stocks fluctuate. They may eventually go way up or way down, but it won’t be in a straight line. And knowing how to profit from more modest moves in a stock—the more typical daily moves you’re going to see over most of your investment life—is crucial for any options investor. That’s where options spreads come in. This strategy uses two options in a tra...
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How I Pay My Small Bills Each Month With Options

If there's one thing I love about options trading, it's the ability to make money just about anytime. One powerful strategy involves making what I call "gas money" trades, where I can make a small amount of money, but safely and often thanks to the options market. In this video, I'll share with you how that's done and walk you through two examples.
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