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 [...]
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 [...]
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 [...]
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 [...]
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
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 [...]
About a year ago, Howard Lindzon (the StockTwits CEO) appeared on CNBC. The reporter asked him: "Can you learn about someone through their tweets?" Howard responded: "Of course!" The reporter completely disagreed and said: "If a person has no picture, a random Twitter handle (such as @stocktrader####), and is completely anonymous...how can you discover ANYTHING [...]
1) My number one trading rule is: PROTECT YOUR CAPITAL. Always think defense first. If you don't protect your money, you'll have nothing to trade with when a new rally begins. 2) Just as important is PROTECTING CONFIDENCE. Too many traders get killed and chopped to death during corrections. Unfortunately, when the new uptrend begins, [...]
Whenever I attend investment conferences or speak to a group of traders, there are always a few people looking for the "Holy Grail." In other words, they are searching for some magical formula or a crystal ball to tell them when to get in and out of the market. I have news for you: IT DOESN'T EXIST! [...]
A friend emailed me this story recently. I would happily give credit to the source, but I have no idea where it came from. I hope you find some meaning in it as I did when I read it... When I got home that night as my wife served dinner, I held her hand and [...]