One of the basic tenets put forth by Charles Dow in the Dow Theory is that security prices
do trend.
To consistently earn money in the stock market, you only want trade stock trends!
Trend following is a popular trading system. The method involves joining an established
trend with an aim to ride the stock in the direction it's heading and exiting when the
trend reverses.
Trend following is a great way to chew up your trading capital!
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A principle of technical analysis is that once a trend has been formed
it will remain intact until broken.
That sounds much more simplistic than it is! The goal is to analyze the current
trend using trendlines and then either invest with the current trend until the
trendline is broken, or wait for the trendline to be broken and then invest with
the new (opposite) trend.
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After a significant price move (either up or down), prices will often
retrace a significant portion of the original move. As
prices retrace, support and resistance levels often occur at or near
the Fibonacci Retracement levels.
The Fibonacci Retracements pattern can be very useful for traders to
identify reversals on a stock chart.
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There are many ways of using moving averages to trade but by far the
most common method is to trade when a short-term moving average
crosses over a longer term moving average.
An up signal is given when the short-term price MA crosses above the long-term
price MA. A down signal is given when the short-term price MA crosses
below the long-term price MA.
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The MACD Histogram (Moving Average Convergence Divergence Histogram) provides
far earlier and more responsive signals than the original MACD.
The MACD Histogram is useful for anticipating changes in trend.
Alexander Elder describes the divergence between the peaks and bottoms
of share price and the MACD Histogram as the strongest signal in
technical analysis.
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Relative Strength Index (RSI) is an extremely useful and popular
momentum oscillator.
The best analysis of the RSI was found out: it is better to find a
divergence in which a new high is being made by the security, but the
RSI is going down to surpass its previous peak. This divergence means
that soon the reversal will come.
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Price % Gainers |
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As of 11/19/08 Market Close |
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| Symbol |
Last |
% Change |
$ Change |
|
3.92 |
41.89 |
1.16 |
|
4.90 |
22.50 |
0.90 |
|
4.24 |
21.14 |
0.74 |
|
5.40 |
20.81 |
0.93 |
|
4.70 |
20.51 |
0.80 |
|
42.00 |
20.00 |
7.00 |
|
13.44 |
16.26 |
1.88 |
|
15.00 |
16.19 |
2.09 |
|
4.36 |
14.74 |
0.56 |
|
3.39 |
13.00 |
0.39 |
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Price % Losers |
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As of 11/19/08 Market Close |
|
| Symbol |
Last |
% Change |
$ Change |
|
7.31 |
-39.88 |
-4.85 |
|
5.93 |
-36.71 |
-3.44 |
|
3.16 |
-36.16 |
-1.79 |
|
11.40 |
-35.67 |
-6.32 |
|
5.34 |
-33.33 |
-2.67 |
|
6.12 |
-29.98 |
-2.62 |
|
6.88 |
-28.63 |
-2.76 |
|
5.87 |
-27.89 |
-2.27 |
|
11.75 |
-26.56 |
-4.25 |
|
17.73 |
-26.31 |
-6.33 |
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Volume Leaders |
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As of 11/19/08 Market Close |
|
| Symbol |
Last |
% Change |
Volume
|
|
6.40 |
-23.44 |
340,521,472 |
|
14.45 |
-10.02 |
181,330,240 |
|
13.06 |
-14.02 |
172,782,544 |
|
18.29 |
-6.78 |
102,942,192 |
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28.47 |
-11.42 |
90,118,552 |
|
24.40 |
-10.29 |
86,564,448 |
|
4.57 |
-13.12 |
76,379,104 |
|
12.49 |
-4.73 |
73,653,440 |
|
15.08 |
-8.33 |
72,563,808 |
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16.00 |
-5.99 |
65,760,148 |
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11/18/2008
Being positive is always a good thing in any aspect of life. In the trading world it is almost impossible to make money without having positive thinking. read more..
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11/18/2008
Price is king when it comes to the market. Sure there are many different ways to evaluate a company and the different methods all have their advantages but the price patterns of a company still gives you the most accurate buy and sell signals. read more..
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11/11/2008
Successful trading systems provide the best way to make money in the stock market. In order for a trading system to work it needs a few things. read more..
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11/11/2008
There is no such thing as the magical trading system. All trading systems have their strengths and weaknesses. read more..
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11/10/2008
When trading, especially short term trading, there are a number of things that are important to look at. Each individual chart should have these things before you decide to trade them. read more..
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11/5/2008
When you first enter a trade you must determine which time frame you want to use. Trading your time frame is very important. You cannot enter a trade based on one time frame and exit it based on another time frame. read more..
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11/4/2008
Put two different traders together and give them the same trading plan and these two traders trade the same currency pair. After a period of 6 months one trader would have failed and the other would have succeeded in tripling the starting account. It will come as no surprise then that the successful trader is a professional trader who understands what separates them. The answer is the psychology of trading. Have you heard of the psychology of trading? It comprises of 3 elements and they are (1) fear, (2) excitement, and (3) discipline. read more..
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11/4/2008
Trading apart from the crowd is the only way to consistently profit in the stock market. History has shown that the majority of people are wrong, the majority of the time. Even so, it is human nature to follow the crowd. That has helped us to survive when we were hunters and gatherers. read more..
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11/3/2008
Trading with the market and not against it can be the quickest way to profiting in the stock market. This one thing can give you success in the market even if you are terrible at everything else. read more..
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11/3/2008
The difference between professional traders and other traders is a stark difference. The professional traders might not have degrees by the dozens or even be very educated at all. The difference between a successful trader and a losing trader is the bottom line. Professional traders have made mistakes and have lost money before but they can jump back up and trade profitability again. read more..
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Indices |
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As of 11/19/08 Market Close |
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| Index |
Value |
% Change |
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7997.28 |
-5.07% |
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1386.42 |
-6.53% |
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806.58 |
-6.12% |
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181.69 |
-6.26% |
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5011.99 |
-6.59% |
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1245.71 |
-4.67% |
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432.53 |
-6.24% |
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10/14/2008
Trading is a business, it can be played like a game but it really is a business. If you do it well, trading can potentially outstrip any conventional business in terms of monetary returns. But you should know this already, that's why you are reading this in the first place. What you probably don't know at the moment is how to trade Forex smart so that you will be a top earner and not a top loser. read more..
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5/8/2008
There is a widespread rumor in the financial community that successful day trading can be manually programmed and automated to produce vast profits for minimal work and input on the part of traders, providing a regular and consistent income by simply setting up a system, clicking a button to turn it on, and walking away. This is NOT true. I myself am just one of the many victims of this 'automated trading system' myth. read more..
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9/1/2008
Stock screeners are extremely useful in allowing traders to search the entire stock market for stocks that conform to specific criteria set by the user. This allows traders to compile a Watch List of stocks that conform to their criteria. read more..
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9/1/2008
I have been making some great money from the stock market over the last few weeks. In this article i will explain my strategy and dissect how and why I have been making money despite global indices falling as the full effect of the credit crisis sinks in to the financial world. The media is absolutely full of doom and gloom about the worlds stock markets at the minute. read more..
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10/14/2008
The stock indexes are at a low. An upside reversal is due. The Russell 2000 and the S&P 600 may be leading the way. read more..
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