Stock Trading Techniques

How you exit a trade is as important, if not more important, than how you enter it. This may seem odd, but if you think about it, if controlling your risk to small, predetermined amounts is the key to successful trading and investing then that, by definition, tells you how important the exit is.
Your [...]

Read Full Post »

Always use protective stops! This is an absolutely imperative action you must take! It is also the way to limit our risk as per Part 2 of this discussion. Once you’ve defined your 2% risk in terms of your account equity, always place a protective sell stop to get out of that trade at a [...]

Read Full Post »

Sometime others can say things better than I could ever express them. The title of this post is taken from a post on another site where the Arden sisters, who are internationally know as some of the most accurate precious metals forecasters around, wrote a post with the same title. It expresses some powerful views [...]

Read Full Post »

The trailing stop we entered for MagSilver (MVG) was triggered yesterday, but I didn’t have time to write a post. We were sold out at $15.27 for a $1,395 profit after commissions.  See the updated portfolio tab for the results.
Another one of our picks, HGU.TO (a leveraged gold ETF) bought at $27.43, has also done [...]

Read Full Post »

Basically there are 5 different types of order you need to know about:
1. Market Order
2. Limit Order
3. Stop Order
4. Stop-Limit Order
5. Trailing Stop Order
Market Order
A market order is a request to purchase or sell a stock at the current market price. Market orders are pretty much the standard stock purchase order. One thing to [...]

Read Full Post »

[Erv's note: This is a guest post from my friend, Hank.
Click here to see this chart full-sized and keep it open as you read the commentary (by the way, the bottom of the chart says "sometimes by ~50% in 4 to 8 weeks". That is not a minus 50%, but is the squiggly "tilde" symbol [...]

Read Full Post »

Yesterday (Monday, January 28) gold closed at a new all-time high (in nominal dollars) of $926.90. So what’s next, short-term, a correction or a new high? There will always be corrections along the way, but long-term gold is headed for $2,000 an ounce and, possibly, a lot higher. However, that doesn’t help us with today’s [...]

Read Full Post »

Seventy-five percent of individual investors currently believe the stock market will be lower in six months. This is the most pessimistic outlook since October 1990 when the last bear market in real estate ended. That was also a very tough time for stocks which, at the time, were down 11.5% for the year.
After October [...]

Read Full Post »

Leonardo Fibonacci was a mathematician who was born in Italy sometime around the year 1170. The Fibonacci sequence of numbers is as follows: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc. Each term in this sequence is simply the sum of the two preceding terms and sequence continues to [...]

Read Full Post »

We can use ratio analysis to compare the relative strength between any two stocks. For example, an individual stock divided by the S&P 500 index can determine whether that stock is outperforming or underperforming the stock market as a whole. A rising ratio indicates that the numerator (the first symbol shown) in the ratio is [...]

Read Full Post »