This is one important case study as to why investors lose money in the stock market. Now if you look at the chart, Here is what you see: 1. 32 Months of pure range-bound consolidation 2. Clearly defined support and resistance zones 3. Five months of consolidation at the resistance zone 4. A beautiful high-volume breakout followed by a...
Diversification is a market strategy that enables you to spread your money across a variety of assets and investments in pursuit of uncorrelated returns, hedging, and risk control. Table of Contents What is portfolio diversification? Brief history of the modern portfolio theory Why is diversification important? An example of diversification at work How to...
Emotions play a significant role in trading and can have a profound impact on decision-making and overall trading performance. Here are some common emotions that traders experience and how they can influence trading behavior: 1. Fear: Fear is a powerful emotion that often arises when traders face unexpected market movements or potential losses. It can lead to...
IPOs can be enticing opportunities for investors to jump into potentially high-growth companies from their early stages. While IPOs can offer significant returns, a strategy of investing in every IPO that hits the market is not considered prudent. Let us explore several key reasons why such an approach is unwise for investors. Lack of Information: IPOs often...
Here is the 5 TIPS TO DO with your mistakes: 1. Acknowledge Your Errors So often, we say things like, “It’s unfortunate, but market goes opposite me” or "SEC lawsuit crashed prices, so I lose" But blaming other people or minimizing your responsibility isn’t helpful to anyone. Before you can learn from your mistakes, you have to accept full responsibility for...
Let's keep it straight to the point, Shall We? 1. Emotional Investing: One of the most prevalent mistakes is allowing emotions to drive investment decisions. Fear and greed can lead to impulsive actions, such as panic selling during market downturns or chasing speculative investments during bullish phases. Solution: Develop a well-thought-out investment plan...
As discussed in our previous post, a well-defined trading plan is your invaluable compass, navigating you through the ever-shifting tides of the financial markets. It's not a rigid set of rules, but a dynamic roadmap that evolves with changing market conditions. Defining Your Trading Goals Your trading plan begins by clearly defining your trading goals. What do...
Below is the complete instruction on how to use the Fundamental Strength Indicator . Part 1: The Fundamental Strength of the Company To understand what it is for, let's imagine that you manage a long-distance running team, and you need to recruit a team of excellent athletes. However, you don’t even know the names of these athletes or their contract amounts....
Buying areas and possible withdrawals of the QQQ ETF, for long-term investments. You can follow the evolution on a weekly timeframe and take profits or add to the investment at major support or resistance areas.
In the previous publication I started talking about my decision-making system. I use it when investing in stocks. This system allows me to answer three questions: - which stocks to choose? - at what price to make a trade? - and in what quantity? In this post, I will continue to answer the question Which stocks to pick? and tell you about another facet of...
Hi Traders, Investors and Speculators 📈📉 Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. Daytime job - Math Teacher. 👩🏫 For today's post, we're diving into the concept " risk reward ratio " by taking a look at practical examples and...
Here are powerful quotes of professional traders, investors and experts in financial markets. Let their words inspire you and help you in your trading journey. "To succeed in the market, you must learn to think like everyone else and do the opposite." - Sir John Templeton 📈💭💡 "The four most dangerous words in investing are: 'This time it's different.'" -...
I am pleased to introduce a robust long-term strategy that seamlessly combines performance with an enticing risk profile. This strategy involves strategically investing in ETFs indexed on the S&P 500 and ETFs backed by physical gold. Let's delve into the rationale behind selecting these two assets: S&P 500: 1. Automatic Diversification: Instant exposure to a...
In the realm of decentralized finance (DeFi) and crypto investments, two terms frequently encountered are APY (Annual Percentage Yield) and APR (Annual Percentage Rate). While they sound similar, their distinctions are vital, often determining the returns on your digital assets. APR vs. APY: Unraveling the Complexity Annual Percentage Rate (APR) represents the...
Hey! Everybody wants to get rich. But not many from us know what it takes. In this article let's discuss Investing income from annual percentage yield (APY) . Key point is the percentage of income can be different from your location, but lets make our calculations from 8.0% APY. Why this strategy is Affordable for ALL? Well, for calculation I've used only...
I've added a new function to my strategy that allows simulating the strategy's performance while gradually increasing the capital used each month, thus simulating both savings and investment simultaneously Backtest of my strategy docs.google.com
"Welcome to a fascinating journey into the world of trading with the Volatility Breakout Strategy – a method that offers you a glimpse into the wisdom of legendary trader Larry Williams. In this comprehensive guide, we'll unravel the strategy's intricacies step by step, giving you the tools to incorporate it into your own trading style. Disclaimer: Before we dive...
"Squid Game, the sensational Netflix series that has taken the world by storm, offers a gripping mirror to human psychology, reflecting the intricate dance of emotions and decisions that we often encounter in the world of finance. Just as unsuspecting individuals are lured into the deadly games by the enigmatic subway stranger, many novice investors are drawn into...