Tips For Trading Potential Bottoms
It was nice to see some subtle signs of strength in the market today (11/1/12). By no means are we out of the woods, but I did notice a Day 6 Follow Through Day (FTD) on the S&P 400 Mid-Cap Index ($MDY). For those of you not familiar with the FTD concept, I suggest reading Chapter 9 in William O'Neil's book: How To Make Money in Stocks. If this is a potential near-term bottom, here are [...]
The Market is a Beast of its Own, Respect it!
In the fall of 1987, there were 11 days of distribution (heavy volume selling) BEFORE the October 1987 crash. In September 2001, the market was looking horrible, no stocks were setting up, and out of nowhere...9/11 happened. Fast forward to today. In late September/early October the market experienced heavy distribution. I went to 100% cash on October 9th and discussed my reasons in this blog post. Since then, I was very tempted to slowly get [...]
A Few Trading Lessons
I recently had the opportunity to hear Scott O'Neil speak to a group of stock traders and investors. Scott is the President of MarketSmith and one of the sharpest portfolio managers in the business. Over the 2-hour talk, he covered many topics. Here are a few lessons that should serve as great reminders to all traders. 1) Entry point is critical. Scott described his entries as "laser focused." You should enter a position when it [...]
Stay Focused on the Leaders
I haven't updated my blog in a while because I have been neck deep trading this market. Back on Sunday, August 19th, I sent the following email to the people who attended my seminar earlier this year. Rather than typing up a new blog post, I simply copied and pasted the email because my stance hasn't changed since I wrote it 3 weeks ago: Dear Seminar Attendees, I hope all is well. My last email [...]
Wait for Bases to Properly Form
For you technical traders out there, in the following video I discuss waiting for a proper base to form and avoiding "later-stage" bases. Enjoy the video and good luck trading! Follow me on Twitter @jfahmy Follow me on StockTwits @jfahmy
Confidence is Everything!
From all the reading I've done, amazing people I've talked to, and my own life observations, I've come to the conclusion that: Confidence is everything! No matter what you do in life, you have to believe in yourself and maintain a strong state of mind...especially if you're a stock trader. Stock trading might be one of the toughest professions out there. I don't mean just making some money in a good market, I'm talking about CONSISTENTLY profiting [...]