Be Aware of Upcoming Quarterly Earnings Prior to Entering a Trade

Quarterly earnings results can cause significant short-term price gyrations in a stock. A miss in results, an off comment by an executive during the call, and your well-reasoned stop loss is triggered shortly after you entered the trade. Take a look at this Starbucks (SBUX) chart (weekly candles): The stock … Read more

A Practical Risk Management System for Stock Trading

Successful people don’t wish for success; they decide to pursue it. And to pursue it effectively, they need a system. “How to Fail at Almost Everything and Still Win Big: Kind of the Story of My Life” by Scott Adams If you’d like to start trading stocks, you need a … Read more

Three Rules for Investing

A “trader” would be primarily concerned with which direction the stock market was heading, while an “investor” would concentrate on selecting stocks with the best chance of outperforming the market overall. In other words, the investor was always long, while the trader might be long or short. Market Wizards Whether … Read more

Google & Using Monthly Candle Charts for Context

In the past month Google shares (GOOGL) are down -8.22%. Largely due to controversies around their latest AI releases, and investors growing increasingly concerned at the prospect of Google falling behind in AI. A similar scare occurred shortly after the launch of ChatGPT. Google’s Bard received lukewarm response and the … Read more

How To Plot Volume Bars on Index Charts in Thinkorswim

I’m currently studying William J. O’Neal’s CAN SLIM Investing System. The M refers to Market Direction. Determining whether the general market is uptrending (bullish) or downtrending (bearish). O’Neal writes on the importance of monitoring both price and volume changes of markets. The best way for you to determine the direction … Read more

Fibonacci Retracement Levels for QQQ & Magnificent Seven

To start the trading year I’m reviewing Fibonacci retracement levels of the NASDAQ 100 and the underlying Magnificent Seven. NASDAQ-100 (QQQ) Starting with a 4-year QQQ weekly chart. The low was set in March 2020, and the high during the final trading week of 2023. On the news of rate … Read more

Risk Management, Stop Strategy, Eliminating Impulsive Trades

One broad theme from my 2024 Trading Principles is risk management. Specifically refining my strategy for using stops, and eliminating impulsive trades. Stop Strategy I’m basing my stop strategy on Market Wizard Bruce Kovner’s approach: Whenever I enter a position, I have a predetermined stop. That is the only way … Read more

My 2024 Trading Principles

As I prepare for 2024, I’m reflecting on what worked well in 2023, and what I’d like to improve upon in the new year. Instead of setting “trading resolutions”, I’ve come up with trading principles and a system for following them. The system is a note in Notion which contains … Read more