Much of the popular literature in technical analysis deals with the variation between trends and ranges. Traders and investors tend to follow the herd, for better or worse, and whatever the dominant state of a market is, trend or range, traders tend to extrapolate into the future and expect to continue. When these expectations… Continue reading How To Use Technical Analysis the Right Way for Reversal Trading
Tag: Technical Trading
Red Dog Reversal Strategy Explained for Beginners
The Red Dog Reversal is a trading setup which aims to catch a reversal in a downtrend. What is a Reversal? Before we get into the details of this specific trading setup, let’s get clear on what a reversal trade really is. I think of it like this: you can boil down a lot… Continue reading Red Dog Reversal Strategy Explained for Beginners
How To Handle Stocks You Don’t Trade Well
Many trading pundits claim that you can use the same trading strategies and tactics across all stocks, bonds, or any asset. In other words, they claim you should be able to trade Apple stock in the same way that you’d trade the Russian Ruble. Besides the fact that there are literal differences between the… Continue reading How To Handle Stocks You Don’t Trade Well
The Phillips Curve: What Does It Tell Us About Inflation?
The Phillips Curve has come back into the spot light. U.S. inflation level is running high this year, with several major consumer price barometers soaring faster than they have in years. Every major official measurement of inflation has surged in 2021, particularly the consumer price index (CPI). According to recent data released by the… Continue reading The Phillips Curve: What Does It Tell Us About Inflation?
What Is A Form 8K Filing and How to Use It
If you’re a beginner day trader and aren’t sure where to do your research, there’s no need to worry. Over 20 million forms with indispensable information from companies, brokerages, and individual brokers are available for free on the U.S. Securities and Exchanges Commission (SEC) website. You can find information on initial public offerings (IPOs), bankruptcies, mergers,… Continue reading What Is A Form 8K Filing and How to Use It
Sprott: The Uranium Market’s Biggest Whale
The uranium market has made legendary price moves throughout August and September 2021 after spending several years as a forgotten commodity, dormant in a bear market. Uranium producers suffer from a problem familiar to commodity producers in secular bear markets: their cost of production is above the spot price of the commodity. They find… Continue reading Sprott: The Uranium Market’s Biggest Whale
The Evergrande Situation: What You Need to Know
By now, most active traders are well aware of a Chinese real estate company called Evergrande. Everyone in the financial media is panicking about the company’s danger to the global financial system, with the company earning the moniker “the Chinese Lehman,” as a reference to devastating effects investment bank Lehman Brothers’ collapse had on… Continue reading The Evergrande Situation: What You Need to Know
What is a Shelf Registration?
As the U.S. sank into an economic downturn that was triggered by the coronavirus pandemic in 2020, many public companies scrapped their buyback programs and reduced or scrapped dividend payments. For some companies, raising additional capital via venture capitalists or initial public offerings (IPO) also became necessary. But initial and secondary public offerings are… Continue reading What is a Shelf Registration?
Beginners Guide to Inverse ETFs
What Are Inverse ETFs? Inverse ETFs are a financial product that allow you to make bets against a specific asset like a sector, industry, index, commodity, etc without having to short anything. For example, if you invested in the ProShares UltraPro Short QQQ (SQQQ) inverse ETF, you would make money when the NASDAQ 100… Continue reading Beginners Guide to Inverse ETFs
Day Trading During A Market Corrections
As we have seen in the past decade, bull markets can last for a long period of time. But occasionally, a bull market will go too far ahead of itself and an unexpected slump in prices may happen. When stocks or other financial instruments experience a sudden drop in the middle of a bull… Continue reading Day Trading During A Market Corrections