Picking Your Spots When Selling Short

“Nobody makes money in a true bear market, not even the bears“ | The action this week got me thinking that I need to write a Duru-like missive on shorting. But since I don’t have a Ph.D you’ll just have to suffer through the following rant which I’ll try to keep relatively short. Yesterday Howard [...]

How I Trail My Stops

The other day Downtown Trader asked me how I handled trailing my stop on that DGX short. I pretty much followed exactly what’s in my post about how I take partial profits. I moved the stop to breakeven once my gain was equal to my initial risk of 50 cents per share. As it dropped [...]

Oil & Gas Stocks Look Shortable

Duru sent me an email about potential oil & gas shorts so I thought I’d take a look. Back on February 1st I pointed out how toppy some oil stocks were looking. I posted a chart of SWN, noting the bearish engulfing pattern it made that day. It proceeded to drop more than 20% over [...]

Trends and How They Act

Just passing on yesterday’s Worden Report from Don Worden, one of the founders of TC2000. The Worden Report (Tuesday, June 15, 2004) Trends and How They Act We remain in a Minor Uptrend. We, of course, have been in an Intermediate Downtrend for most of the year and a Primary Uptrend dating back to October [...]

Trading 101: Recommended Reading – ‘Japanese Candlestick Charting Techniques’

Learning how to use candlestick charts was probably the second most important thing I’ve learned (money management is a clear #1) since I started trading for a living. The funny thing is that when I started trading all of the charts in my trading software were defaulted to displaying candlestick charts. At that time I [...]