On 5/28/13, I wrote a blog post about how I lightened up my equity exposure. The S&P 500 was at 1660 and proceeded to drop over 60 points. When the S&P 500 found support on its 50-day moving average (around 1600 on 6/6/13), I began to increase my exposure as discussed here. Since then, the [...]
Jesse Livermore was one of the greatest traders who ever lived. You can read more about him here. He has so many great quotes, but here are a few of my favorites: 1) The stock market is never obvious. It is designed to fool most of the people, most of the time. 2) Play the market [...]
On Tuesday night (5/28/13), I wrote a blog post about how I lightened up my stock positions and reduced my market exposure. At the time, the S&P 500 was at 1660 and proceeded to drop over 60 points into last Thursday (6/6/13). I began to increase my exposure around these levels for the following reasons: [...]
My friend Josh Brown wrote a great blog post about active portfolio management. It sparked so many thoughts, so I'll try to sum them up in the following points: 1) I talk to many potential investors who ask me "why should I have an active strategy when the market is doing fine and keeps going up?" [...]
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 [...]
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. [...]
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 [...]
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 [...]
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 [...]
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 [...]