Posted by admin on July 6th, 2010
Everyone dreams of financial stability, but achieving that dream is not always easy. Fortunately, there is a better method – the stock market.
The stock market is an excellent way to not only earn a bit of extra money, but also to be able to quit your day job and live comfortably for the rest of your life. Wondering how to navigate through the stock market as an inexperienced trader?
In order to use the stock market effectively, you need to have the proper training. BetterTrades gives you that training and a wealth of knowledge to help you be a successful investor. BetterTrades teaches real people how to understand the terminology of the stock market as well as how to make the most out of your initial investment dollars.
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Combine unique articles and tips with interactive classes taught by experienced traders and you have BetterTrades – an exclusive method of training potential investors with their individual needs in mind.
Each instructor offers a different focus, background, and teaching method. Using their experience and skills to help people just like you, novice investors earn more money than they thought possible. The great part about learning from teachers who have such different methods is that everyone is sure to find something that works for them.
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Posted by admin on July 4th, 2010
In Part I of this article, I taught you to trade momentum that occurs after an earnings announcement. In this article, I am going to go into some of the chart patterns we can use to trade momentum that is unrelated to earnings or news. And in Momentum Part III, I will show you how to combine news and chart patterns to trade momentum. But, before I get too far ahead of myself, let me recap what momentum is and why I trade it.
I love to trade options on stocks with a lot of momentum. What this means is that I want to trade those stocks, Exchange Traded Funds or Indexes that are moving fast and far. The way I see it, if I am going to put my money in the market, I want to place it where it will work as hard as possible for me. You may have attended my free webshop on Monster Momentum plays during which I introduced a couple of the technical tools that I use to find and trade this strategy, but let me show you today some other pieces to this strategy and how this can be a boost to your trading account.
The first step to trading momentum is that you need to find a stock that has the capability to move fast and far. These stocks generally have a dollar to two dollar average daily range during normal trading. Once the momentum picks up, they can trend twenty to thirty points or so in a matter of a few months. Sometimes this momentum is sparked by news announcements such as earnings or a new drug approval and sometimes it is just a stock that becomes heavily bought or sold by institutions. Whatever the case, once you learn to read technicals, you will be able to spot the building momentum in time to profit from the big move.
Many of my most profitable momentum trades took place not because of any news but just because the chart began to show signs of big buying pressure or big selling pressure. I look for things like breakouts, long candle bodies, and various candle patterns combined with the six indicators I use to signal a momentum trade. The best way I can teach you to trade momentum is to show you some of the patterns that I and others in my Traders’ Talks have recently traded.
The first thing to keep in mind with momentum is that once a stock has made a big momentum move, you know it has the ability to do it again in the future. It will probably take a breather for a while and it may not move in the same direction, but the momentum will almost always pick up once again.
Take Goldman Sachs (GS) for instance. This stock ran with a lot of momentum from $155 to about $205 before it started trading sideways.
If you had been to my Technically Speaking classes or in my Traders’ Talks you would have traded GS all the way up through that run. But at the end of the run, Goldman took a breather for almost a month while it traded in a sideways range between $198 and $203. During this sideways movement, I put my money in other stocks and ETF’s that were moving with more momentum. Don’t forget what I mentioned earlier, that stocks that have moved with momentum in the past will almost always move with momentum again. So when a momentum stock slows down make sure you are ready to trade it once it begins to move again.
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Posted by admin on July 1st, 2010
I love to trade options on stocks with a lot of momentum. What this means is that I want to trade those stocks, Exchange Traded Funds or Indexes, that are moving fast and far. The way I see it, if I am going to put my money in the market, I want to place it where it will work as hard as possible for me. You may have attended my free webshop on Monster Momentum plays during which I introduce a couple of the technical tools that I use to find and trade this strategy, but let me show you today some other pieces to this strategy, and how this can be a boost to your trading account.
The first step to trading momentum is that you need to find a stock that has the capability to move fast and far. These stocks generally have a dollar to two dollar average daily range during normal trading. Once the momentum picks up they can trend twenty to thirty points or so in a matter of a few months. Sometimes this momentum is sparked by news announcements such as earnings or a new drug approval, and sometimes it is just a stock that becomes heavily bought or sold by institutions. Whatever the case, once you learn to read technicals, you will be able to spot the building momentum in time to profit from the big move. As we are heading into the thick of earnings season, this article will show you some ways to trade the post earnings momentum. Watch for part II of this article to learn more about other technical momentum plays.
Holding a directional trade over earnings can be risky, but after the release the uncertainty of what direction the stock will move is gone. I like to trade after earnings because we often have an unusually large amount of trading activity that moves many stocks faster and further than they would normally go. It may be that earnings numbers were a big surprise, (they might be much stronger or weaker than expected) or it may be that traders were waiting to see what the quarter was like before they put more money into or took money out of the stock. It truly does not matter what the actual number are, mind you, because we are not trading the numbers, we are trading the reaction to the numbers. Checking a chart the evening after a company announces will show us if we have tradable momentum. If there is a great amount of buying pressure, I trade it up and if I see a lot of selling pressure, I trade it down.
One of my more favorite post earnings plays is Goldman Sachs (GS). In fact, this trade has worked out extremely well on Goldman a couple times already this year. HINT: this is a stock to watch the next time they release earnings!
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Posted by admin on June 28th, 2010
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BetterTrades can be your virtual classroom; with some of the top trading instructors working to create classes that will interest, educate, and inspire you, you can participate in a trading education like no other. Work with some of the top names in trading today, and get experience from the professionals who have been on the trading floor and have published books to back up their techniques and skill in the industry. The BetterTrades virtual classes allow you to experience the give and take of a traditional classroom from the convenience of home with their online education programs.
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