When I first starting designing and testing trading systems, back in the early days of personal computers and trading software, I immediately gravitated toward counter trend trading. I would put up a stochastic, before I even knew...
Good Stock Investments - How To Spot The Best Stocks For Your Portfolio
So what are some good stock investments for your portfolio? Just about everybody wants to know this. The truth is, the answer all depends on what type of investor you are.There are really two types of investment strategies you can...
What Small, Medium and Large Cap Stocks Mean To You
Stocks can be classified in terms of their size, small, medium and large cap stocks. Capitalization can be referred to as the market value of the company. We derived the market value of a company by multiplying market pric...
What Are Your Options When the Market Takes A Nosedive?
It is inevitable that in your trading career numerous downturns in the share market will occur from time to time.Now you have a few choices available to you but this also depends on what sort of trader you are as to the effect it...
How Long Should I Backtest An Online Daytrading System?
I am frequently asked how long one should backtest a online daytrading system. Though there's no easy answer, I will provide you with some guidelines. There are a few factors that you need to consider when determining the period f...
Timing the Exit of a Trade After a Large Move
There are many examples of market blow-offs and subsequent crashes. It is a very difficult balancing act trying to decide whether to get out during the parabolic move, and possibly leaving huge gains on the table, or to hold on wi...
"Stagnant"
If we apply the covered call strategy to the stagnant stock scenario, we take a negative return scenario and turn it into a positive. Remember, when we sell an option, we receive a premium for doing so.When the stock does not move...
Stock Options Are Not Risky!
Tell someone that you invest derivatives and stock options and you will likely find that they look at you with a hint of fear in their eyes. These financial instruments have become synonymous with "high risk" in the public mind.T...
Forex Trading - To Invest or Not To Invest, That Is The Question
Forex trading is all about buying currency. You buy as much as you can of a currency when its value in relation to another is low and wait for the situation to change. When the value of the currency you bought goes up again you se...
Subprime Meltdown - We Were Not Surprised
WERE ANY VIGILANT OBSERVERS SURPRISED? WE HAVE BEEN PREDICTING THAT DERIVATIVES WERE A POTENTIAL MESS FOR MANY YEARS.Surprise, the hedges that some failed speculators in the bond market have put on, failed to act in the way that...
