Over-confidence can lead to significant losses. The stock market is complex and unpredictable, and thinking you can master it carelessly can result in painful mistakes. Let’s explore the dangers of over-confidence and how to maintain a balanced approach to trading. The Perils of Over-Confidence 1. Ignoring Risks Explanation: Implication: Example: 2. Failure to Adapt Explanation: […]
Month: July 2024
Cava 16 Jul 2024
Carvana Co. (CAVA) is currently testing a breakout region. Will we see a bounce from here?
Managing FOMO and Confirming a Good Trade
Imagine you want to buy 400 shares of stock “QWERT” at $100 each, but you only manage to purchase 320 shares because the price rises. Here are two important points to consider: Strategies to Handle This Scenario 1. Acknowledge and Control FOMO Action: Application: Example: 2. Evaluate the Trade’s Strength Action: Application: Example: 3. Set […]
Week 29 watchlist
Welcome to the watchlist for Week 29 2024. This weekly compilation offers some ideas for you to analyze. Please note that the trades listed here are not ready-to-execute suggestions; do your own due diligence before trading. I dedicate many hours over the weekend to preparing this list, so instead of sharing it directly with friends, […]
Understanding Stock Behavior: Rapid Rises and Volume Dynamics
When a stock rises rapidly with high volume and then consolidates with decreasing volume, it often indicates strength and the potential for further upward movement. Let’s explore this concept in detail and how you can use it to enhance your trading strategy. Key Concepts 1. Rapid Price Rise with High Volume Explanation: Implication: Example: 2. […]
Know What You Control in Trading
“In trading, we cannot direct the wind; we can only adjust our sails.” Understanding what aspects of trading are within your control and what aspects are not is crucial for developing a successful trading strategy. Let’s explore these elements and discuss how to gain some control over the uncontrollable aspects. Direct Control in Trading a. […]
Understanding the Cup and Handle Pattern
Cup and Handle Pattern Explanation: Analogous Explanation 1. Heavy Rain (Initial Drop in Stock Price) 2. Sunshine Drying Up the Road (Formation of the Cup Bottom) 3. Small Showers (Minor Pullbacks during Recovery) 4. Great Weather and Dry Road (Formation of the Handle) 5. Breakout (Post-Handle Rally) Practical Steps to Trade the Cup and Handle […]
Week 28 watchlist
Welcome to the watchlist for Week 28 2024. This weekly compilation offers some ideas for you to analyze. Please note that the trades listed here are not ready-to-execute suggestions; do your own due diligence before trading. I dedicate many hours over the weekend to preparing this list, so instead of sharing it directly with friends, […]
The Importance of Hard Work and Study in Trading
“STUDY: The person who will not work hard and STUDY and pay in advance for success will never get it. If you will put in the time, study and go over the records of at least 250 stocks for many years back, you will be convinced that the rules work and that you can make […]
The Role of Supply and Demand in Market Trends
“Remember that supply and demand govern prices. When prices move up to new high levels, there is somebody buying, and it is useless to buck the trend. The same applies when a market is declining. When a market works down to lower levels than it has been for a long time, the selling pressure is […]
The Cyclical Nature of Markets: Understanding Booms and Busts
“Just as sure as young generations come along from time to time, we will continue to have BOOMS in business, BOOMS in the STOCK MARKETS and COMMODITIES, LAND BOOMS and other wild WAVES of speculation. Youth has to be served and young nature has to have its fling. That is why HISTORY REPEATS, because HUMAN […]
Understanding How the Tape Can Mislead You
“The tape does not fool traders. The traders fool themselves, because when the market is moving very fast and stocks or Commodity is moving up very fast, it increases the imagination of the man who is watching the market too closely. It causes him to become too optimistic and have too much hope, and he […]
The Value of Focused Study and Independent Analysis in Trading
“Remember, you must pay in advance for what you get by time and study, and the time you spend reading news, reading on Twitter, or listening to ‘experts’ is wasted in most cases. There are too many disturbances, too many cross currents, in the news and rumors. You make a greater success when you sit […]
The Essential Role of Knowledge in Achieving Trading Success
“KNOWLEDGE BRINGS SUCCESS. There is only one key which unlocks the door to big profits and that key is KNOWLEDGE. You cannot get knowledge without work. I have made a success by hard work and you, too, can make plenty of profits out of the Stockmarket if you study and work hard enough. Work is […]
Week 27 watchlist
Welcome to the watchlist for Week 27 2024. This weekly compilation offers some ideas for you to analyze. Please note that the trades listed here are not ready-to-execute suggestions; do your own due diligence before trading. I dedicate many hours over the weekend to preparing this list, so instead of sharing it directly with friends, […]