Ever wondered why volume is crucial when trading stocks?

Stock Trading Volume: Your FAQ Guide 1. Why is trading volume important in the stock market? Trading volume is crucial because it reflects the interest and conviction behind price movements. High volume suggests strong interest, indicating a robust move, while low volume can signal weakness or indecision, even if the price is moving. 2. How […]

Stocks in Play by Institutional Investors 24 sept 2024

Today, we’ll delve into several companies that have been attracting significant attention: Tesla (TSLA), NVIDIA (NVDA), Amazon.com, Inc. (AMZN), Unity Software Inc. (U), Broadcom Inc. (AVGO), Advanced Micro Devices, Inc. (AMD), Intel Corporation (INTC), SoFi Technologies, Inc. (SOFI), Alibaba Group Holding Limited (BABA), JD.com, Inc. (JD), and NIO Inc. (NIO).

Trading 101

Listen to the podcast => 1. What is the essence of trading? Trading is fundamentally about finding a balance between risk and reward. It involves understanding probabilities, recognizing market trends, and making timely decisions based on analysis and strategy. 2. How important is risk management in trading? Risk management is paramount. Before entering any trade, […]

The Dangers of Over-Confidence in the Stock Market

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: […]

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, […]

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 […]

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, […]

The Importance of Proven Rules in Trading

“First, prove to yourself that the rules that I give you are good. They have worked in the past and they will work in the future. The rules given in this book are practical rules. They have cost me forty years of experience and hundreds of thousands of dollars to learn. I KNOW they will […]

The Power of Studying Price Movements

“If you study price movements correctly, they will tell you more about what the market is going to do than any broker, newspaper, or so-called inside information. The time period is the most essential, because time tells what prices are going to do.” Understanding price movements and the importance of time periods is crucial for […]

Trading on Knowledge: Eliminating Fear and Hope

To be a successful trader, you must learn to trade based on knowledge, eliminating fear and hope from your decision-making process. When you are no longer influenced by these emotions and are guided by solid knowledge, you will have the confidence to trade effectively and make profits. By understanding the past history of a stock, […]

Reflecting on Losses in Stock Trading

To those of you who have traded stocks and have lost money, I ask you this question: “Did you ever stop and consider WHY you have lost money?” If you have, you must answer honestly that you have lost money because you were guessing, following brokers’ opinions, or following someone’s advice who thought he knew […]