A complete trading system can be defined with detailed buy and sell rules. That’s all you need to have a system. Rules let traders know what they should do in advance. Disciplined traders follow their rules and avoid making emotional decisions in fast-moving markets. Two simple ideas — trading rules… Read More

Risk management is one of the most important considerations of successful traders. They understand... Read More

Risk management is one of the most important considerations of successful traders. They understand that risk will never be eliminated, so they take steps to minimize their losses when they are on the... Read More

Charles Dow recognized the link between the stock market and the economy in the 1880s. He developed the Dow Jones Railroad Average as a way to measure the stock market and the broad economy. At that time, railroads were probably the most important economic sector. As industrial stocks became more… Read More

Fifty years ago, General Electric (NYSE: GE) traded at $73.37 a share, according to the historical data. But, it didn’t really trade that way. Fifty years ago, traders used fractions and GE would have been quoted at something like $73 3/8 bid, $73 1/2 ask. The ticker tape back then… Read More

Federal Reserve actions have had an impact on market prices and lately I’ve heard some traders blame the Fed when their performance suffers. However, a well-designed trading system should be able to take advantage of Fed action rather than be derailed by their policy changes. Although the size of the… Read More

Some traders will base trading decisions solely on the calendar. These are traders that employ seasonal analysis in their work. Seasonal analysis involves identifying the time periods when a market is most likely to rise or fall and placing trades based on that calendar tendency. A well-known example of seasonal… Read More

When talking about how successful buy-and-hold investing can be, many advocates of that strategy reference The Coca-Cola Company (NYSE: KO) and point out that buying one share of KO when it went public in 1919 would have turned $40 into $9.8 million. Being a trader, I have of number of… Read More

Retirement accounts are among the most valuable assets most people have, but limited investment options can present challenges to effective management. My 26-week rate of change (ROC) trading system was actually designed for retirement accounts and could help no matter what the options are. Many employers offer 401(k) accounts and… Read More

The opening range breakout strategy is one of the first day trading strategies explained in detail for individual traders. In 1990, Toby Crabel wrote a book called Day Trading With Short Term Price Patterns and Opening Range Breakout. This book has been… Read More

Yesterday, I showed how billionaire investors like Warren Buffett use simple options strategies to... Read More

Yesterday, I showed how billionaire investors like Warren Buffett use simple options strategies to generate millions in extra income.  And while not every investor can make a cool million or two... Read More