Trading Tips Blog

1 2 There are literally 100’s of different technical analysis indicators available to financial market traders.  Most every indicator has its adherents and detractors in the market.  The reason for this is that every indicator works some of the time.  Based on the way indicators are devised, they are fitted to a certain market condition.  This is why they sometimes work and sometimes do not work as expected. As you probably have figured out by now, indicators that only work in certain market ...
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1 2 Technical analysis traders have many tools at their disposal to help make investing decisions.  There are common ones like Bollinger Bands, moving averages and price patterns.   In addition to these common tools there are an entire host of esoteric type technical tools like Gann Angles and the Ichimoku Cloud. This article will provide the basics about the powerful technical indicator known as the Ichimoku Cloud. I like the Cloud since it is a no nonsense indicator.  There is very little interpretation ...
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1 2 Investors are anxiously seeking novel ways to ramp up their portfolio option trading for income in today’s ultra low rate environment. The most popular way to ramp up your income by using options is writing covered calls. Covered call writing means selling calls protected by stock held in your portfolio.  This is why the sold calls are referred to as covered since you already own the shares. How Does It Work? Remember how options work.  Purchasing one call option gives the buyer the right ...
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1 2 There is a tremendous amount of confusion among investors when it comes to technical analysis. Many investors are convinced that technical analysis of stocks simply does not work since they can’t seem to make a profit using it. Other investors swear by technical analysis’s ability to accurately call market moves in advance.
What is the truth about technical analysis? The truth about technical analysis is somewhere in between the two extremes above.  
Technical analysis does not predict the future with 100% accuracy.  This ...
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1 2 There are very few stock market sectors that provide the consistent volatility and profit potential of the biotech industry.  In fact, outside of derivatives, it can be safely said that biotech stocks are the number one fastest way to earn quick profits in the entire equity market. The above graph from Forbes Magazine illustrates the extreme potential of the sector.  The chart shows the distribution of returns for every biotech IPO since 2013.  As you can see, a substantial percentage gained ...
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1 2 Talk about a volatile stock market!  The current high levels of volatility have forced many investors to look outside the box for consistent profits. One of the best ways to trade stock are using the volatility to their advantage is via a variety of option strategies. Here are 5 easy to understand and execute option strategies for today’s highly volatile stock market.

1. Straddles-Profit No Matter What Way The Stock Moves

Straddles
are one of my favorite option strategies. It is a trade that will ...
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1 2 One of the coolest things about financial markets is that all the wisdom and knowledge that you need to succeed is available freely. Whether this knowledge is gained from books, the internet, or one on one mentorship with proven successful investors, it really doesn’t matter.  Everyone has their own learning style and some learn best face to face, others learn best from reading brief articles, and still others love to dig deep into investment books written by the masters. I find that ...
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1 2 We often talk about the critical importance of combining both technical and fundamental analysis into a cohesive whole when making investing decisions. Both of these seemingly contradictory analysis techniques have dramatic flaws.  The secret to success in the stock market is the combination of these two analysis methods. Charting and price analysis was once relegated to the investment underground with only the hardest core analysts charting price by hand.  The majority of investors used fundamental analysis to make decisions. Things have changed radically ...
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