All Entries Tagged With: "Stock Market"
The Simplest Way to Trade
September 22, 2011 at 9:19 am
When it comes to trading, complicated does not equate to better. So with that said, here’s a quick checklist you can use to keep your trading simple.
Keep a core portfolio of positions you like.
Learn to locate new trades, identify patterns, and employ the best strategy given the conditions.
If the pattern confirms, enter the trade.
If the pattern fails, exit the trade.
If your target is met, reduce position (if momentum is still present) or exit completely.
Trading might not ever be EASY, but you can make it simple.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
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Trading Scene Still Great
December 8, 2010 at 12:30 pm
On Nov 1, I mentioned the scene was set to improve, and since then we’ve seen exactly that. I didn’t base that post on the notion of higher prices necessarily, because UP does not equal GOOD – just as DOWN does not equal BAD.
I’m a trader, so for me it’s all about the movement. It’s volatility that makes for a great trading environment, especially when the technicals are playing such a prominent role. We’ve seen a pick up in volatility of late, which simply delivers faster moves for us as traders.
Lately, we’ve seen exactly that. Individual stocks and the indexes alike have respected trend lines and important resistance and support levels, allowing for some excellent trading opportunities for the astute trader to capitalize on.
Taking it to the Charts
For example, the indexes have been textbook in their respect of key levels. The S&P 500 has been range-bound between 1173 support (with numerous tests of that level in recent weeks) and 1227 resistance (tagged a few times but no close above it yet). That’s perpetuating the short-term trading range, which could easily serve as a stepping stone for another advance if it’s resolved to the upside.
The DJIA also has been highly respectful of key levels. The mid-May post-flash-crash bounce carried the senior index up to the 10920 area, and since then that level has been revisited. Currently it’s serving as support over the past few weeks, while the early-November high at 11451 was tested and held on Tuesday.
Individual stocks have also made exceptional moves through important trend lines as well as out of well-defined patterns. Here’s a look at a few examples:
So the general trading scene continues to improve, which means there’ll likely be ample opportunity in the weeks ahead to capitalize on. But the market won’t give you money – you’ve got to know where to find it and how to extract it. If you’re preparing daily with several if/then scenarios, and you’re managing your risk appropriately, you’re positioning yourself for continued success.
Trade Like A Bandit!
Jeff White
Producer of The Bandit Broadcast
Are you following me on Twitter yet?
Protect Capital Even in a Bull Market
July 27, 2009 at 8:03 am
This market sure has been strong – we have yet to see a pullback which has lasted longer than a few minutes!
Instead, we’ve merely seen brief pauses of sideways price action, which is quite nice…if you’re long.
A powerful market like this does have a downside though, which is fewer quality setups for new long side entries. And shorting? Well, let’s just say some feelings have been hurt for the bears!
We’ve come a long way since the July 8th lows, and right here, it’s very easy to chase stocks if you want to get long. It feels like it almost can’t go down (famous last words), and thus confidence is really high. But that doesn’t make buying here a good decision. In fact, sometimes it’s best to actually let the market come to us after such a move.
Protecting capital is the top priority of all successful traders. Making money is secondary.
Even strong bull markets like what we’re seeing right now require that we protect capital. It’s easy right now to think making money on the long side must be easy when the market rallies almost daily.
But trading out of fear that the market will run off and leave you behind is a recipe for forcing trades, which will usually cost you more money than it’ll make you!
Stay Focused
Our job as traders is to take only the best setups with the highest reward and lowest risk associated with them.
Keep that in mind here, as the market remains quite extended on a short-term basis. Manage your open positions the best way possible, and be willing to patiently let the market come to you. Once it does, then set up new trades.
There will be plenty of good setups in the next few days and weeks, but it isn’t wise to lower your standards and buy stocks that are technically extended just to get long.
A lasting bull move will offer plenty of chances to buy, and that’s best done on pullbacks or after resting phases. If this breakout sticks, we should see many opportunities in the weeks to come.
Thanks for stopping by and I’ll see you here soon with more. Until then…
Trade Like a Bandit!
Jeff White
Are you following me on Twitter yet?
Market View Video January 4, 2009
January 4, 2009 at 12:47 pm
Although 2008 brought about one of the worst bear markets in history, it ended on an upbeat note with the indexes climbing higher in the final sessions. That paved the way for some additional upside as 2009 got underway with a solid rally last Friday.
That rally produced an important breakout from multi-week trading ranges which had prevented the major averages from making any meaningful headway. With resistance now broken, on a technical basis this market should be free to continue north for a little while before the next important levels are approached.
The biggest key will be volume, as we’ve seen considerably light trading activity around the holidays (which is typical and expected). This week as traders return to their desks en masse, we should see some marked improvement in participation, which could also shed some light on whether or not this breakout will prove trustworthy.
So as you start to build your trading plan for this week, be sure to stop by and check out this week’s Market View video over at the main site for a close look at the levels to keep an eye on.
(Click image to view video)
Trade well this week!
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]
Market View Video December 7, 2008
December 7, 2008 at 12:36 pm
Following a solid rally off the recent low, the market has been able to put in some needed rest by actually digesting those gains rather than quickly giving them all right back. That’s encouraging price action which not only allows for further upside to come along soon (if the bulls want it), but it also has enabled many individual charts to start forming some quality chart patterns from which trades can be made.
While the trading landscape remains a tricky one with higher volatility than usual, it seems that things may finally be starting to settle down a bit. If that’s the case, then we’ll see many more opportunities begin to emerge for swing trading, particularly if the frequency of large morning gaps starts to subside.
Before you dive into your trading routine for this week, be sure to check out the Market View video over at the main site for a closer look at some key levels for the indexes to keep an eye on.
(Click image to view video)
Trade well this week!
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]
Market View Video November 23, 2008
November 23, 2008 at 5:32 pm
New 52-week lows were seen last week across the board, and in spite of a Friday rebound, the market suffered another setback.
The technical picture remains far from pretty, but as we head into a holiday-shortened trading week, there’s a chance for some upside in the short term. Historically, the bulls have been able to produce some strength on these typically light-volume weeks, so we’ll see if this week is any different.
As you start piecing together a trading plan for the coming week, be sure to stop by and check out this week’s Market View video over at the main site for a closer look at the current conditions.
(Click image to view video)
Trade well this week!
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]
Market View Video November 16, 2008
November 16, 2008 at 4:59 pm
More recent tests of key support came last week, and thus far they’ve proven successful. However, with the major averages still lingering near those support zones, it places a lot of importance on the price action we’ll see in the days to come. There’s no doubt all eyes will be on the bulls this week to see whether or not they will lend support to the averages.
As we’ve seen time and time again in this tape over the past several weeks, no scenario is out of the question. The day to day volatility continues to run extremely high, offering many opportunities for nimble traders, while simultaneously placing a premium on high levels of cash on an overnight basis. Needless to say, we’re at another interesting juncture as we face the week ahead!
So before you go placing any trades this week, stop by to check out the Market View page over at the main site for a closer look at the overall market as you start to formulate a trading plan.
(Click image to view video)
Trade well this week!
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]
