Year: 2021

Stocks breakout from correctly formed bases everyday but most investors do not know how to find a pivot point or what patterns to research that may contain this exact important buy signal.A pivot point could be described as the best buy point or the place at the end of a comfortable base pattern in which the stock breaks out into new high territory.William O'Neil, the founder of Investor's Business Daily is considered the leader of the pivot point these days...

A PEG ratio can't be used alone but is a really powerful tool when integrated with the basics (price, volume and chart reading).You must enjoy crunching numbers and have a calculator handy to estimate your own PEG ratio.Access to quality statistical data from the internet such as past earnings and future earning estimates is vital to calculate this fundamental indicator.An assortment of websites produce a PEG ratio but I haven't found one website which has a dependable PEG ratio I can use for my research, so I calculate it myself, ensuring accuracy with the last number...

Most stock traders know that momentum trading can be a very rewarding activity.You can make enormous amounts of cash in a short time period.The issue is, that in the event you do not know what stocks to look for and how to approach them and leave everything to chance, you could end up wasting money instead of making your profits grow.That is why the most important feature of momentum trading is the knowledge FILTER you employ to make your buy and sell decisions...

The cornerstone of diminishing return talks surround such straightforward notions; that when you've got a extremely fast aircraft, you have coefficients of drag difficulties.When you're constructing a quarter mile car and want to go faster you need to realize that for each tenth of a second you will need to lose 100 lbs., but to go faster you need more energy, thus the difficulty in Einstein's concept of the threshold of speed being the speed of light...

Most of us know that emotions control every decision that an investor makes in any type of money related vehicle.Whether is be the stock exchange, real estate, art work or antiques, emotions ultimately set the final price on both sides of the transaction.Some investors have greater control over their emotions while other investors are destroyed by their emotional reactions to certain events.One common occurrence I have seen many investors create, including myself, is putting a position in a stock at the wrong moment...

Before you embark upon a journey of trading stocks or futures contract, and prior to making any transactions, you MUST determine and establish your risk level.Dealers that fail to do this are often doomed from the beginning.The simple fact is that almost all trading accounts which go bust are due to the failure to ascertain at what stage the dealer will cut their losses and move on to another trade...

You have decided to try your luck in trading commodities or stocks, but so called experts tell you that you will need to ascertain your trading objective.Just what does this mean and why is it important? Well, it is really a matter of your trading philosophy.A trading goal basically identifies the horizon where you have chosen to trade.As an example, a day trader will have completely different set of goals and objectives than will a long term investor...

An investor could find and study the best inventory on the current market, one with enormous potential but if the overall market indices are negative, it will almost certainly be the wrong time to purchase.A stock with enormous accelerating earnings, increasing sales, an up-trending graph pattern and a strong industry group may seem excellent to purchase but will mean absolutely nothing if the sector is set to move in the opposite direction of your expectations...

Alternatives - An OverviewAlternatives give the buyer the right, but not the obligation, to buy (a call option) or sell (a put option) the underlying Stock or futures contract at a specified price up before a given date.In other words, options are similar to tradable insurance contracts.An investor can buy a Put option as insurance against a decline in the Stock price or a Call option in the event the Stock rises...