Posted by 26 June 2004

Trading 101: Moving Averages

Moving averages (MAs) are very simple, yet extremely useful tools for investors. A moving average is simply the average of a series of numbers over a period of time which is constantly updated by dropping the oldest value and then adding the newest value and recalculating the average. So a 5-day moving average of stock [...]

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Posted by 25 June 2004

Success Leaves Clues

Here’s a little something I found at BondTrader’s weblog. He has a link to a page that contains quotes from some top traders: Success Leaves Clues There are certain ‘business rules’ that triumphant investors and traders adhere to. If you were able to model these business rules then maybe it’s possible for you to also [...]

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Posted by 24 June 2004

Free Positions!

One of my favorite things to do is take a free position and/or lock in gains when I can. Since I had pretty nice gains on most of the positions I initiated yesterday I was very focused on rolling up my stops this morning. I’ve now guaranteed myself (assuming that they don’t gap against me) [...]

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Posted by 7 July 2003

Rule #1

I’ve had this rule taped to my monitor for the past 3 years: On gap-up openings, buy above the 10:00 high. That rule has saved be a lot of money. When I started trading, I’d get all excited when I saw the futures flying pre-market. I’d rush in to buy at the open, thinking I’d [...]

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Posted by 27 May 2003

Resistance is Futile

Today reminded me of one of William Eng’s trading rules: Bear markets have no supports and bull markets have no resistance. The market sliced through the mid-May’s overhead resistance as if it wasn’t even there. In doing so, the head & shoulder pattern that I pointed out Friday was invalidated. Led by the NASDAQ, with [...]

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