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.

Trading lesson – Dec-06-2019

Have you ever heard of pattern trading? Who are the participants of this market exchange? Pattern day traders are traders who execute four or more day trades within five business days using the same account.

Day trading refers to buying and then selling or selling short and then buying back the same security on the same day. Intra-day traders are faced every day with the necessity to make quick decisions about the opening and closing of every single intra-day trade. The most profitable intra-day traders use very simple day trading systems.

Check out how to become a profitable pattern day trader.