Three Classic Tools to a Three Step Setup

And that's because the motives and emotions that rule the market have not changed. Fear and greed rule and probably always will. Because of this fact, I purposely sought out books written in the early 1900s because the crutch of television and computers were not available to these traders. In my opinion, these books focus on price and chart patterns more than books written in the latter part of the century. Price and chart patterns are the most direct way to measure market emotion. Analyzing...

How to Draw Trendlines

Ou've undoubtedly heard of markets that are in an uptrend or downtrend, and we understand that this is a description of the general direction of the market. But how do we measure it We use trendlines. Trendlines let us know the direction of the trend, the strength of the trend, and also when that trend may break. Personally, I love trendlines. I spent a lot of years trying to become a sophisticated trader. As you get a better at your career you develop a higher, and often, more complicated...

History Repeats Itself The Five Mistakes Traders and Investors Make

There are a number of different methods traders and investors have used to make money in the market. Ranging from fundamentals to technicals, tape reading to charting, the methods to success are as varied as the participants in the markets. But we all tend to make the same dumb mistakes when we lose money. We're going to discuss the top five because without exception these mistakes are repeated over and over again like a skipping record we won't stop playing. So let's try and stop that cycle...

The Difference Between Scalping Momentum Swing and Position Trading

Et's begin this discussion with the understanding that the definition of scalping, turn, swing, and position trading will vary from trader to trader We need a baseline so I will describe each of these trading types as it pertains to how you may want to incorporate each into your approach to the markets and also which you find you may begin to adopt more actively into your trading day. There is one idea I should say one myth that needs to be dispelled. Trading types have nothing to do with how...

Maximum Profit

THE BEST KEPT SECRET OFF WATT oTpwpcTp To my Ma, Nila, and Herbie. You are all my reasons. Designations used by companies to distinguish their products are often claimed as trademarks. In all instances where John Wiley & Sons, Inc. is aware of a claim, the product names appear in initial capital or all capital letters. Readers, however, should contact the appropriate companies for more complete information regarding trademarks and registration. Copyright 2005 by Raghee Horner and Superior...

Measuring Trends with CCI on Short and Long Term Charts

It's funny to me now, but when I first started trading commodity futures in college, I didn't know much about the futures market at all. My experience until then was solely based on stocks and mutual funds. I understood price action, drew trendlines, support, resistance, Fibonacci levels, etc., but thought that I needed something more for the futures market. One morning, I was looking through the list of indicators on my charting platform and came across the Commodity Channel Index. It seemed...