7 Things You Need As A Trader
This is in no particular order, as they are ALL important. 1) Strategy - There are so many different strategies: value, growth, momentum, short selling, etc. Find one that fits your personality and do your best to master it. The fastest way to learn is to study success. In other words, find someone who is successful at the strategy you like, and then mimic them with your own style. Another key is to recognize when [...]
Extreme Fear
There is a phenomenon going on that I've never seen in my 17 years of trading: EXTREME FEAR. What makes it so strange to me is that it exists with people who are both in the market AND out of the market. I'll give you two examples: EXAMPLE #1 - I speak to many potential investors. It amazes me how many people have been in 80-90% cash for the past 3-5 years. They've missed out on [...]
VIDEO: Interview with J.C. Parets, CMT
Here is an interview with fund manager J.C. Parets (@allstarcharts on Twitter and StockTwits). J.C. is a Chartered Market Technician with a great eye for charts. In addition, he looks at all the Global Markets, so he has a great feel for what is happening worldwide. Enjoy the video! Follow me on Twitter @jfahmy Follow me on StockTwits @jfahmy
Don’t Trade If Your Head Is Not Clear
This past week or so has been great for momentum traders. It's finally nice to see growth stocks breakout consistently and move higher. I have a friend that I talk to regularly who trades similar to me. We exchange ideas, talk about charts, etc. Here's a quick story with a HUGE lesson behind it. About 10 days ago, my friend got into a big fight with his girlfriend. He was invested in the market, but [...]
Paul Tudor Jones – 60 Minutes Interview
I am a huge fan of studying success. Why? Because success leaves clues. In other words, if you are looking to be successful at something, study someone who has already been successful in that area, and LEARN FROM THEM. When it comes to trading, one of my biggest heroes is Paul Tudor Jones. Rather than giving you his bio, you can read about him on Wikipedia. I highly recommend that you also read his interview in Market Wizards. [...]
A Big Challenge For Many Traders
When it comes to analyzing the market and deciding how much capital to commit, everyone has different strategies. For me, I learned many of the principles taught by Jesse Livermore and William O'Neil. Specifically, follow the price action of leading stocks and analyze the price and volume of the major market averages. For example, when I see leading stocks break down and distribution builds up in the market, I raise cash and wait for better [...]