Trading lesson – Jan-03-2020

Do you want to learn more about the basics of investment? Do not try to avoid some learning processes if you are a beginner. Only studying good teaching materials like books, videos or other relevant material could provide enough information about the stock market for a beginner.

A very good source of basic knowledge and investing tips about equity markets are good books. There are plenty of different titles for every beginner to choose from so I have put together a list of books that describe different issues of beginner investing in markets and stocks.

Discover the best books to learn beginner stock market investing.

Trading lesson – Dec-27-2019

We have talked about shorting a stock, also known as short selling, in the recent lesson. As you already know, short selling is an investment or trading strategy that speculates on the decline in a stock or other securities price. It is an advanced strategy that should only be undertaken by experienced traders and investors.

Short sell strategies are an important part of stock trading systems for most profitable traders. A selling short strategy is a valuable tool in neutral and bearish market situations. Short stock strategies could be based on several different ideas. The quite popular idea is to use some parameters of fundamental analysis to check whether shares are a good pick to short a stock.

Discover how to find candidates for short sell strategies.

Trading lesson – Dec-20-2019

Shorting stock, also known as short selling, involves the sale of stock that the seller does not own, or shares that the seller has taken on loan from a broker. Traders may also sell other securities short, including options.

A typical motivation for a short sale is the hope, fear, or perhaps only the tentative expectation that the market value of the asset will decline. For the realization of good and profitable selling stocks short strategies, it is important to short a stock. There are stock market situations when it is preferable to sell short instead of going long and buying shares, such as the bear stock market trend, the relative weakness or strong trend reversal.

Find out the technical reasons to short a stock.

Trading lesson – Dec-13-2019

A chart pattern or price pattern is a pattern within a chart when prices are graphed. In stock and commodity markets trading, chart pattern studies play a large role during technical analysis. When data is plotted there is usually a pattern that naturally occurs and repeats over a period. Chart patterns are used as either reversal or continuation signals.

There are several profitable chart patterns. The simplest and easiest to use are flags and pennant patterns. These patterns are characterized by a clear direction of the price trend, followed by a consolidation and rangebound movement, which is then followed by a resumption of the trend. They are continuation patterns, and forms when the prices of stocks rally sharply.

These patterns are typically found using a manual overview of different technical stock charts. What are the options for online screening for profitable chart patterns and what software for flags and pennant screening should you use?

Read more about the screening for profitable chart patterns like flag and pennant.