Trading Tips Blog

Large cap stocks can be among the safest stock market investments. These are large companies and are known as blue chip investments. A blue chip company is defined as “a nationally recognized, well-established, and financially sound company. Blue chips generally sell high-quality, widely accepted products and services.” Analysts note that “blue chip companies are known to weather downturns and operate profitably in the face of adverse economic conditions, which helps to contribute to their long record of stable and reliable growth.” ...
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In general, we like to see stocks going up and dread extended declines. Although individual investors will all have different time frames they consider, they tend to define an up trend as a series of rising prices in their preferred time frame. Likewise, a down trend will consist of a series of lower prices. Technical analysts generally define a down trend as a series of lower highs and lower lows. The chart pattern is generally clear when a down trend develops ...
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Technical analysis is the study of prices. Proponents of the discipline argue that history has a tendency to repeat and a study of market action in the past can be a useful tool for forecasting the likely direction of price trends in the future. This article will provide you information about Best technical trading strategies. Technicians use price charts and various indicators to develop their forecasts. Price charts are studied to determine if there are any significant visual cues that can ...
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One of the greatest investment books ever published was written by a professional dancer. The 1960 book, How I Made $2,000,000 in the Stock Market, was written by Nicolas Darvas. Other than his books, little is known about Darvas. His Wikipedia page provides a brief biography of his early years: Hungarian by birth, Darvas trained as an economist at the University of Budapest. Reluctant to remain in Hungary until either the Nazis or the Soviet Union took over, he fled ...
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As investors we hear it all the time. The analyst comes on CNBC and tells us a stock is soaring because the company beat earnings estimates. Or, we notice a stock is falling sharply and when we search the news we discover that the company missed analysts’ expectations. These are common explanations for a stock’s market action. But, what do those words really mean? In other words, what are estimates, where do they come from, how often do companies meet the ...
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Now that the stock market has finally delivered a pull back, it is important to think about which indicators will signal the likely completion of the down move. It is also important to remember that no indicator will be 100% accurate, at bottoms or at tops. When thinking of indicators, many traders will turn to familiar tools like the stochastics or the MACD. While these tools are popular, they aren’t very useful at turning points. The chart below shows these two ...
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One big story keeps coming up in the stock market. It’s tax reform. Analysts are still sorting through the implications of the new rules but there is a general agreement that changes to the tax code are bullish for most companies. This week, we searched for individual companies that analysts believe could be winners under tax reform. We searched our database for companies that are followed by at least four different Wall Street analysts and are priced below $20 a share. Then, ...
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Over the past year, we have shared trades based on a seasonal strategy. At the beginning of every month, we provided real time buy recommendations and we also tracked the results of the previous month’s recommendations. Now, after a year, we are able to show you the results for the past twelve months. This system was based on one of the simplest seasonal trades possible. Few traders follow seasonal strategies although these strategies are often profitable. They are also relatively low risk ...
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