Analysis Topic: Investor & Trader Education
The analysis published under this topic are as follows.Thursday, May 31, 2012
Slash Your Risk and Make Money with Traded Options / InvestorEducation / Options & Warrants
Michael C. Thomsett writes: If you feel like Alice in Wonderland when you start to look into options trading strategies, you're not alone.
Even so-called "experts" struggle with options. It gets even uglier when they attempt to bring it down to earth for their readers.
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Thursday, May 31, 2012
The Best Stock Trading Pattern For Profits In A Downtrending Market / InvestorEducation / Learn to Trade
As we go through the charts of the daily indexes and individual names we see a lot of Pullback Off Lows (POL) patterns emerging. Much like in uptrending markets Pullback Off Highs (POH) patterns are the only pattern you need to know the opposite applies in downtrending markets where POL patterns are all you need to know for shorting. Those POL’s are also the what to watch out for if you are long. That all said below are the daily charts of the indexes.
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Monday, May 21, 2012
How a Simple Line Can Improve Your Trading Success / InvestorEducation / Learn to Trade
The following trading lesson has been adapted from Jeffrey Kennedy's eBook, Trading the Line -- 5 Ways You Can Use Trendlines to Improve Your Trading Decisions. You can download the 14-page eBook here.
"How to draw a trendline" is one of the first things people learn when they study technical analysis. Typically, they quickly move on to more advanced topics and too often discard this simplest of all technical tools.
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Wednesday, May 16, 2012
14 Elliott Wave Trading Insights You Can Use Now / InvestorEducation / Elliott Wave Theory
There's no shortage of books about trading these days, and you could read for months before you come across one that might apply to your trading style.
The free 45-page eBook The Best of Trader's Classroom is specifically for Elliott wave traders and saves you time in getting the knowledge you want.
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Friday, May 11, 2012
Is "Mastering the Gap" the new suckers trap? / InvestorEducation / Learning to Invest
My email box is full offers for webinars that will teach me to master the gap. Some may provide useful information.
Could buying just because prices have filled the gap be a trap for uneducated investor that generates frustration and losses?
Thursday, May 10, 2012
How to Predict the Future / InvestorEducation / Technical Analysis
How Roger Babson’s applications of Newtonian Physics are applied to the stock market.
Roger Babson was at the New York stock exchange on March 14, 1907, at the request of a friend. The market had started a drop from a high of 111 on March 6, 1907 on the way to a low point of 60. Much of the drop occurred on March 14. “On that day I actually saw men’s hair turn gray.” Roger wrote in his autobiography.
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Tuesday, May 08, 2012
Every Nation for Itself: Winners and Losers in a G-Zero World / InvestorEducation / Resources & Reviews
I recently had a chance to speak at a conference where Dr. Ian Bremmer spoke after me. I was very impressed with his thought process and asked him to give me an outline of his speech to share with you for this week's Outside the Box. It's a shorter version of his powerhouse book, Every Nation for Itself: Winners and Losers in a G-Zero World. I highly recommend it.
And what, you're asking, is a "G-Zero world"? In a word, it's a leaderless world. A world in which, as Bremmer says, "Not so long ago, America, Western Europe and Japan were the world's powerhouses. Today, they're struggling to recover their dynamism…. But nor are rising powers like China, India, Brazil, Turkey, the Gulf Arabs and others ready to take up the slack…. If not the West, the rest, or the institutions where they come together, who will lead? The answer is, no one."
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Monday, May 07, 2012
Combining the Andrews Lines with the W.D. Gann Head and Shoulders Pattern / InvestorEducation / Technical Analysis
Ron Jaenisch writes: Both WD Gann and Alan Andrews used geometry and pattern recognition. Numerous articles and books have been written about both. Even though some of the techniques of Andrews and Gann are well known, there has been little discussion in combining the techniques. The advantages are significant. Gann techniques have a high probability and Andrews gives one the ability to enter the market with lower risk and significantly better risk reward ratios.Read full article... Read full article...
Monday, May 07, 2012
Is the World coming to an End? Stock Market MAP Waves Theory Explained, Part 3 / InvestorEducation / Technical Analysis
In MAP Waves Part 1 I presented my methodology. In MAP Waves Part 2 I presented probabilities as a simple foundation for a very basic explanation of wave theory so that you can start to visualize what is happening in the stock market and to better understand trading patterns in the context of MAP waves.
Basic Wave theory
Being a strong believer if the KISS principle - grossly simplified for explanation purposes that everyone should be able to relate to;
A wave is a transfer of energy in multiple dimensions - we only need 2 - amplitude and frequency. Amplitude we see as price action and frequency as time - but the beauty of this explanation is that any one of use can see it on a stock chart!
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Thursday, May 03, 2012
What to Make of the Manic Depressive Stock Market? / InvestorEducation / Learn to Trade
The stock market: one week it acts like Dr. Jekyll, the next week it's Mr. Hyde.
That shift can even occur in the course of a single session.
These dramatic fluctuations appear to be impulsive; and we know that impulse does not flow from cold reason. Even so, the Efficient Market Hypothesis would have us believe that investors are constantly applying reason and logic to reach some objective market pricing, via the latest news or measure of stock market valuation.
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Thursday, May 03, 2012
Stock Market Turning Points: Has Wall Street Ever Warned You in Time? / InvestorEducation / Learning to Invest
In the play "The Secret to Freedom," Pulitzer prize writer Archibald MacLeish had a character say this:
The only thing about a man that is a man is his mind. Everything else you can find in a pig or a horse.Read full article... Read full article...
Wednesday, May 02, 2012
Corporate Earnings Don’t Always Reflect Expectations / InvestorEducation / Corporate Earnings
If you participate in the financial markets directly or indirectly it is important that you understand the role earnings plays in acquisition analysis as contrasted with stock market analysis.
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Tuesday, May 01, 2012
How to Invest Like the Market Oracle of Omaha, Warren Buffetts Rules / InvestorEducation / Learning to Invest
Patrick Vail writes: For months, the Obama administration has been using Berkshire Hathaway Inc. (BRK.A, BRK.B) Chairman and CEO Warren Buffett's considerable name recognition to try to change how America's top earners are taxed.
The fate of the so-called "Buffett Rule," which would apply a minimum tax of 30% to individuals making more than $1 million a year, still has yet to be determined. Chalk it up to politics as usual.
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Tuesday, May 01, 2012
What Magazine Covers Really Say About the Stock Market / InvestorEducation / Mainstream Media
Keith Fitz-Gerald writes: Will Rogers once said that "good judgment comes from bad experience, and a lot of that comes from bad judgment."
If he only knew.
Then again, as one of America's famous humorists and social commentators, I suspect he "knew" all too well that history rarely works out the way people think.
Sunday, April 29, 2012
Why "Boring" Businesses Are More Profitable Than "Exciting" Ones / InvestorEducation / Learning to Invest
Dan Ferris writes: This spring, a reader wrote to me with a complaint...
He was irritated with my coverage of "World Dominating Dividend Grower" stocks (WDDGs).
These stocks are too "boring," he said. Why pay to hear how these companies continue to do the same darn thing day in and day out?
Thursday, April 26, 2012
How to Trade Weekly Options / InvestorEducation / Options & Warrants
Larry D. Spears writes: To loosely paraphrase Robert Burns, the best-laid plans of mice and stock traders sometimes go awry.
But with some creative use of weekly options, that doesn't necessarily mean you have to take your losses.
Here's an example of what I mean.
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Thursday, April 26, 2012
Investing Advice, Five Ways to Conquer Gambler's Ruin / InvestorEducation / Learning to Invest
Keith Fitz-Gerald writes: The relationship between investing and profits seems simple enough. You buy low, sell high and your portfolio grows -- or so goes the story.
In reality though, success comes down to something called "Gambler's Ruin."
Most investors have never heard the term but understanding its implications can mean the difference between heartache and success, especially now.
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Thursday, April 26, 2012
Stock Market MAP Waves Part 1 - An Alternative to Elliot Waves / InvestorEducation / Technical Analysis
I had real problems with the complexity of Elliot Wave (EW) corrections, where there are never ending corrections, with some EW analysts having multi decade corrections, where higher tops are valid under EW theory. This presents serious investment difficulties, because you never know where you are in any wave. Here I will present MAP waves, my modified wave counting based on analysis with examples and statistics so that probabilities can be established for risk management on a weekly and daily pivot scale. I only look at indices, because individual stocks can be too easily manipulated, including by governments as is done in the US.
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Monday, April 23, 2012
General Thoughts About Luck / InvestorEducation / Risk Analysis
As someone who plays poker regularly, I'd like to think that I have a good understanding of why luck is important in our lives. It's NOT because the world is completely random and we have no influence over what outcomes will materialize for us - actually, it is the very fact that we do make meaningful decisions in the face of uncertainty that generates luck. Let me try to explain what I mean with an analogy to the game of poker.
Poker is a game of skill, which means those players with superior skills (patience, discipline, memory, critical/logical thinking, mathematical analysis) have a long-term edge over the less skillful among them. It is a very simple game with simple rules governing what each player can do (fold, call, bet, raise), what order they can do it in, how much they can bet at any given time, which hands rank higher than others, etc.
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Monday, April 23, 2012
How to Spot High Profit Probability Trading Opportunities Using Moving Averages / InvestorEducation / Learn to Trade
Dear Trader,
Elliott Wave International (EWI) has released a free 10-page trading eBook: How You Can Find High-Probability Trading Opportunities Using Moving Averages, by Senior Analyst Jeffrey Kennedy.
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