Category: Stock Research

  • Economic Factors and Definitions

    Economic factors include: (a) economic policy, disseminated by government agencies and central banks, (b) economic conditions, generally revealed through economic reports, and other economic indicators. 1. Economic policy comprises government fiscal policy (budget/spending practices) and monetary policy (the means by which a government’s central bank influences the supply and “cost” of money, which is reflected…

  • How to Determine When the Market is Really Trending

    How often have you looked at a chart and tried to determine whether or not the market is really trending? How many times have you been fooled by your Stochastics or RSI indicators? How many times have you sold because your oscillators were screaming overbought then watched the market dip a little and then continue…

  • Momentum and Rate of Change (ROC)

    Momentum and rate of change (ROC) are simple technical analysis indicators showing the difference between today’s closing price and the close N days ago. Momentum is simply the difference,     Momentum = Close(today) – Close(N days ago) Rate of change scales by the old close, so as to represent the increase as a fraction,   …

  • Tips When Studying Chart Pattern.

    There are two important lessons when studying chart patterns. The first is that none of these chart patterns are infallible. They work most of the time, but not always. The second lesson is that technical traders must always be on the alert for chart signs that their analysis is incorrect. One of the keys to…

  • Volume as Secondary Indicators

    Price is by far the most important. Volume is secondary in importance and is used primarily as confirming indicators. Volume is the number of entities traded during the time period under study. The level of volume measures the intensity or urgency behind the price move. Heavier volume reflects a higher degree of intensity or pressure.…

  • Tips of Using Moving Averages

    The moving average is one of the most versatile and widely used of all technical indicators. It is the basis for many mechanical trend-following systems in use today. There are many questions to be considered when using moving averages. Here we address some of the more common usages of the moving average. The moving average…

  • Some General Money Management Guidelines

    The following are some general guidelines that can be helpful in allocating one’s funds and in determining the size of one’s trading commitments. These guidelines refer primarily to futures trading. 1. Total invested funds should be limited to 50% of total capital. This means that at any one time, no more than half of the…

  • How to Read a Mutual Fund Prospectus

    Mutual funds offer several advantages over stock investments, including diversification and professional management. A mutual fund may hold investments in hundreds or thousands of stocks, thus reducing risk of any particular stock. Also, the transaction costs associated with buying individual stocks are also spread around among all the mutual fund shareholders. As well, a mutual…

  • Oscillator- A Secondary Indicator

    The oscillator is extremely useful in nontrending markets where prices fluctuate in a horizontal price band, or trading range, creating a market situation where most trend-following systems simply don’t work that well. The oscillator provides the technical trader with a tool that can enable him or her to profit from these periodic sideways and trendless…

  • Psychological Elements of a Successful Trader

    Courage Under Stressful Conditions When the Outcome is Uncertain All the foreign exchange trading knowledge in the world is not going to help, unless you have the nerve to buy and sell currencies and put your money at risk. The simple task of hitting the buy or sell key is extremely difficult to do when…