Much of the popular literature in technical analysis deals with the variation between trends and ranges. Traders and investors tend to follow the herd, for better or worse, and whatever the dominant state of a market is, trend or range, traders tend to extrapolate into the future and expect to continue. When these expectations […]
The Red Dog Reversal is a trading setup which aims to catch a reversal in a downtrend. What is a Reversal? Before we get into the details of this specific trading setup, let’s get clear on what a reversal trade really is. I think of it like this: you can boil down a lot of […]
What Are Inverse ETFs? Inverse ETFs are a financial product that allow you to make bets against a specific asset like a sector, industry, index, commodity, etc without having to short anything. For example, if you invested in the ProShares UltraPro Short QQQ (SQQQ) inverse ETF, you would make money when the NASDAQ 100 […]
As we have seen in the past decade, bull markets can last for a long period of time. But occasionally, a bull market will go too far ahead of itself and an unexpected slump in prices may happen. When stocks or other financial instruments experience a sudden drop in the middle of a bull […]
FINRA just made updates to their pattern day trader (PDT) rule that punishes violators much more harshly. Here’s a quick rundown on what that means: The Pattern Day Trader (PDT) rule allows for no more than three (3) day trades within a rolling five day period, if the account has less than $25,000. Before […]
You might be reading this and wondering, I’ve heard of initial public offerings or IPOs, but what is uplisting? Chances are, if you’ve been day trading for any length of time, you’ve bought or sold OTC stocks, which are generally too small to meet the stringent requirements needed to list on a formal exchange […]
You make trades in the moment. Ideally, you’re in a ‘flow’ state and not thinking too much about technical details, and applying your training and reviewing later. Think about professional fighters. They don’t think through each punch and slip during the fight. The thinking is done in their training, and then they review how […]
Day trading can be rewarding but challenging, and most traders fail because they can’t control their emotions or are unable to develop a winning mindset. When most people first jump into day trading, they assume that all that is needed is to formulate a great trading strategy and analysis. After that, they only need […]
Scaling in and out of trading positions refers to building and offloading your position incrementally as it meets certain milestones. Scaling into a trade means you begin by initiating a partial position, say 25 shares of a 100 share target position. If the market moves in your direction or shows favorable price action, you add […]
The stock market is a continuous, two-way auction process. If you want to sell, you can ask for any price you want, and the transaction will occur when a buyer is willing to pay your asking price. If you want to sell instantly, you have to accept whichever is the highest price that a […]
