Since the stock market has traded significantly downward over the last month, it appears that another bear market may be underway.  While the prevailing Wall Street definition of a bear market is a 20% drop below recent highs, the average bear market tends to drop quite a bit more than that.  As of this writing, […]

One significant way a day trader can outperform his/her peers is by learning how to trade only in the direction of the overall stock market on any given day.  In other words, if the market is up, the day trader should only focus on long positions.  If the market is down, the day trader should […]

Since the U.S. stock market hit its closing low on March 9th, it has rallied over 20%.  Even prior to the Dow Jones Industrial Average’s 497 point advance on March 23rd, the market had shown significant signs that a nice rally was in force.  Smart investors, who’ve been waiting for a decent opportunity to put […]

In the current economic environment, many of us are looking for new ways to make a living.  Many of us are sick and tired of the daily grind and are searching for ways to work at home.  That is why many people turn to day trading stocks, currencies and futures markets.
 Unfortunately, the vast majority of […]

Over the last 16 months or so since the market peaked in late 2007, many stocks have lost 90% or more of their value.  Unfortunately, many shareholders have ridden this downward slide all the way down to the lows.  This can be devastating to a portfolio, particularly since most other stocks have fallen at least […]

After reading and participating in the investing and trading forums on the internet over the years, I have come to the conclusion that the vast majority of beginning and intermediate investors and traders fail to realize the important role that risk management plays in successful trading. 
 What I have found over the years is that most […]

Traders whose strategies capitalize on major trends were among the big winners in 2008, as trend followers enjoyed their biggest returns in a number of years.  Among these big winners were some big names who have experienced some difficult times in the past five years, including Dunn Capital Management and John W. Henry.  Both traders […]

At this point in time, many traders and investors have no desire to be in the stock market after 40-50% losses in the major averages in just a year, and 70-100% losses in many individual stocks.  However, as the market has tried to find its bottom, now is the time to scour the market for […]

Far more important to your trading success than your entry system is how you manage your trades after you enter your position.  For daytraders, you obviously need to be far more active in monitoring your positions than if you are using a long term trend following system. 
Short term swing traders and daytraders tend to try […]

 Day Trading continues to be one of the most alluring professions as it is one of the few professions that allows you to be self employed and completely independent of bosses, employees and even clients.  It is a profession that you can also do easily from home.  All you need is a computer and high […]