Analysis Topic: Investor & Trader Education
The analysis published under this topic are as follows.
Sunday, February 19, 2023
HOW to INVEST - THE POWER OF TRIMMING! / InvestorEducation / Learning to Invest
By: Nadeem_Walayat
As a reminder when I see an opportunity to buy target stocks at deep discounts then I don't tend to flinch and buy the panics, the falling knives, even if takes me to well beyond my target exposure as has been the case for many stocks during the bear market of 2022 because of what will likely follow, a rally to TRIM.
The objectives is to bank profits and free up cash for future buys, as my target is to be approx 15% in cash (current 7.2%), as with many things I take trimming for granted and assume everyone does the same to some degree i.e. the more target stocks fall the more I buy with a view to engage in trimming during a subsequently rally. If you don't trim then it is something you need to adopt as part of your investment strategy as over time it does add up! Substantially for two reasons -
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Saturday, December 24, 2022
What type of trader or investor are you? / InvestorEducation / Learn to Trade
By: Chris_Vermeulen
Trading and investing are much more complex and challenging than most people think. While countless books have been written about how to trade and invest, most skip over what I consider to be the foundation and most important area – You!
The Brutal Truth
The financial markets are driven by fear and greed. Most individuals find this costly as they get sucked into large news-driven moves in the market that often quickly reverse direction. Or they fall in love with a stock or commodity and decide they can’t sell even when it’s pulling their entire account balance down, causing serious financial harm.
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Wednesday, December 21, 2022
CHANGE the Way You Think About Profit and Loss / InvestorEducation / Learning to Invest
By: Nadeem_Walayat
From the comments section many patrons appear eager to trim holdings. However, this is a dangerous game and mindset to have one of selling on a few percent gain on fears that that smaller profit will evaporate into a loss.
Think about it?
If you follow this investing mindset what kind of portfolio will you end up with?
You will have a portfolio where you have sold all of your winners and are only left holding losers!
This is probably down to the way humans are hardwired to avoid pain, i.e. eat the food now rather than it be stolen or lost in the future.
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Saturday, December 03, 2022
12 Days of Elliott Wave Market Analysis / InvestorEducation / Elliott Wave Theory
By: EWI
Hi,
We're feeling the holiday spirit!
Our friends at Elliott Wave International have just launched a brand new event for traders & investors. It's called the "12 Days of Elliott." From December 1st through the 12th, you get free access to 12 premium educational resources. You'll get a different one each day.
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Sunday, November 06, 2022
How to Trade and Earn on CS:GO / InvestorEducation / Learn to Trade
By: Sumeet_Manhas
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Friday, October 21, 2022
How Elliott Waves Work with Individual Stocks / InvestorEducation / Elliott Wave Theory
By: EWI
"The primary value of the Wave Principle is that it provides a context for market analysis"
Elliott waves reflect the repetitive patterns of mass psychology -- so they are ideally suited for analyzing the widely traded main stock indexes.
On the other hand, thinly traded individual stocks may not trace out Elliott wave price patterns nearly as well.
That said, there are many individual stocks which are widely traded -- like most of the big and well-known companies (and others which have captured the interest of investors).
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Monday, September 19, 2022
STOCKS BEAR MAKRETS ARE SUPPOSED TO BE PAINFUL! / InvestorEducation / Learning to Invest
By: Nadeem_Walayat
The bottom line is that bear markets are supposed to be PAINFUL! And I can tell many investors feel that PAIN from the comments as they post the latest price of say Intel or AMD or TSMC or any other stock trading lower as if I have a magic button to press to make the stock go higher. So if you are feeling PAIN then go read my earlier recent articles on the psychology of investing in bear markets because bear markets are PAINFUL where the degree of pain experienced depends on what time frame on is focused upon.
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Friday, September 16, 2022
Learn Elliott Wave Theory - FREE 1 Hour Course / InvestorEducation / Elliott Wave Theory
By: EWI
Hi,
Our friends at Elliott Wave International are offering a complimentary course on how to 1) spot an Elliott wave pattern on a price chart, and 2) develop a solid trading plan to take advantage of it.
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Thursday, September 08, 2022
What Is Options Trading And How To Know If It Is Good For You / InvestorEducation / Options & Warrants
By: Steve_Barker
Options trading is the buying and selling of assets that give the buyer the right to specify both the price and the time of purchase of a particular security. With options trading, you have complete control over your financial market decisions.
After purchasing an option, you are free to sell it at any time or day of your choosing. However, there is no penalty for not selling an option you have purchased. The two main categories of options are call and put options.
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Thursday, September 01, 2022
What Don’t They Tell You About Online Trading? / InvestorEducation / Learn to Trade
By: Sumeet_Manhas
Traders come in all shapes and sizes, but we can narrow it down to two types. There are risk takers and those who play it safe. By definition, trading is a risky undertaking. It always has been. Despite our best efforts, it’s impossible to predict the direction and magnitude of price movements at any time. We use a variety of trading tools and resources to gauge the performance of the markets. These include technical and fundamental analysis.
By and large, trading platforms sell the hype with lofty promises of significant returns and comfortable retirements. Regardless, there are no guarantees. Stakeholders in the financial markets – particularly those with something to gain from unsuspecting traders and investors, are single-minded. They want to generate as much profit as possible in double-quick time. Hence the presence of fraudsters, shell companies, and less than honest financial reporting.
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Saturday, August 06, 2022
Elliott Waves: Your "Rhyme & Reason" to Mainstream Stock Market Opinions / InvestorEducation / Elliott Wave Theory
By: EWI
R.N. Elliott's stock market observations fell together "into a general set of principles"
It's understandable why investors with little experience consult the market opinions of professionals.
But many of these new investors are left scratching their heads. Two headlines from July 29 indicate why:
- [Fundstrat Managing Partner] says the 2022 bear market is over, stocks could hit new highs before year-end (CNBC)
- Stock market's post-Fed bounce is a 'trap,' says Morgan Stanley's [Chief Investment Officer] (Marketwatch]
Yes, two directly opposing opinions that were published on the same day.
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Monday, July 18, 2022
The Psychology of Investing in a Stocks Bear Market / InvestorEducation / Learning to Invest
By: Nadeem_Walayat
Every bull market is followed by a bear market and every bear market is followed by a bull market, where courtesy of the electron and inflation mega-trends the general indices are on an upwards exponential trend trajectory. Thus all bear markets are living on borrowed time and thus ones focus should be on accumulating positions in good stocks i.e. those that actually generate earnings and have good prospects for continuing earnings growth that courtesy of bear market negative sentiment results in prices trading to under value stocks i.e. to under X18 earnings, where everything above X18 is carrying a premium which is why I completely sold out of many stocks last year such as Amazon and Nvidia even though they had yet to peak due to the risks of a valuation reset as I covered in my in-depth analysis of August 2021
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Sunday, July 10, 2022
Does Selling Put Options During A Market Downturn Provide A Safety Net? / InvestorEducation / Options & Warrants
By: Chris_Vermeulen
In a significant market downturn, bearish sentiment, if not outright fear, can drive down the share price of good companies rather drastically. When the market is in a sustained selling mood, there can be a substantial disconnect between the long-term fundamentals and the technical price action we see on the chart.
The Temptation to Bottom Fish
What can we do when good companies are trading at what appear to be bargain prices? We could “stick our toe in the water” and buy shares. But what if we’re wrong about whether a bottom in the share price is in place? Or what if the stock takes a very long time to build a base and goes nowhere for an extended period?
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Tuesday, June 28, 2022
Technical Analysis: Why You Should Expect a Popularity Surge / InvestorEducation / Technical Analysis
By: EWI
Here's when a "rebirth of interest" in cycles and waves occurs
You probably know that the term "technical analysis" refers to analyzing the behavior of financial markets themselves -- such as the stock market -- as opposed to "fundamental" analysis, which is based on news and events outside of financial markets.
Well, in recent years, technical analysis has been out of favor.
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Sunday, June 19, 2022
Useful Things You Need To Know About Tweezer Top Candlestick Pattern / InvestorEducation / Technical Analysis
By: Steve_Barker
The tweezer top candlestick pattern was popularized by Steve Nison in the West through his book ‘Japanese Candlestick Charting Techniques’. Tweezers have varied in appearance, but there are certain traits that they have in common. Their appearance at market-turning points makes it possible to use them for analysis purposes. At times, they specify the likelihood of a reversal. When the price direction of an asset changes, it is known as a reversal.
These candlestick charts have been used by the Japanese to trade commodities since the 17th century. They monitor the prices of commodities in an aesthetically pleasing manner.
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Friday, June 03, 2022
FREE Japanese Candlesticks Trading Course / InvestorEducation / Learn to Trade
By: EWI
Hi reader,
One of the best ways to get an edge in trading is to hand-pick a few select tools for your arsenal.
Japanese Candlesticks are one such tool. In skilled hands, they can really show you the trend and alert you to trend reversals.
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Sunday, May 29, 2022
Managing Emotions – How FOMO Affects Your Trading And Your Life / InvestorEducation / Learn to Trade
By: Chris_Vermeulen
Managing emotions you say? Often we hear that we are supposed to trade without emotion as if we’re robots. That’s a big fat myth.
“If you can keep your head when all about you are losing theirs….”
From “If,” by Rudyard Kipling
We’re in a challenging market. Here are some thoughts on how to not just survive but thrive as we work through a significant peaking phase of the economic and market cycles.
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Tuesday, May 10, 2022
How to Recognize a Less\ Than Obvious Opportunity (In focus: Corn) / InvestorEducation / Elliott Wave Theory
By: EWI
When I was growing up, my father owned and operated a furniture manufacturing company. Its products stocked the shelves of several well-known retail stores across the country, including Walmart.
On the cover of one of his most popular products, a simple D.I.Y. end table, was a picture of the fully assembled table with a framed photograph of a smiling young girl holding a Persian cat. That young girl was me, and the cat was my childhood pet Princess.
Naturally one day the inevitable happened. My dad and I were shopping at Walmart, and we passed a woman with one of his boxed DIY tables in her cart. She looked at me, then at the face staring back at her on the cover of the box, and then again at me.
Visibly shaken, she braved her way over to my dad and asked if, in fact, I was the girl on the box. Without skipping a beat, he grinned and said he saw the resemblance but no, I was not her and we were on our way. I couldn't help looking back to see the woman, standing there glued in place with an utterly baffled expression.
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Tuesday, March 29, 2022
Learn to Value Stocks Using the Earnings Growth Factor / InvestorEducation / Learning to Invest
By: Nadeem_Walayat
After the current panic passes I will revert to posting my primary AI stocks table as the main table for data, presently the table retains my original pre-panic buying levels as of 22nd November 2022 for comparison purposes with levels achieved in red against those that remain pending. Remember all of these levels once upon a time seemed far out of reach, who could have imagined Nvidia would fall from $336 to $236 over a couple of months! Google to $2625! Microsoft to $282, Intel to $48, okay I'll give you Intel, but many of the levels have now been achieved and then some!
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Sunday, March 20, 2022
Your Journey to High-Confidence Stock and Commodity Markets Trading Starts Now With Corrective Elliott Wave Patterns / InvestorEducation / Elliott Wave Theory
By: EWI
Soybeans and Apple stock (AAPL): Corrective patterns signaled opportunities in these disparate markets. Your market could be next!The last 2 years have been a time of immense global adversity with the most challenging human health crisis in over a century.
But it has also been a time of immense personal growth. The uncomfortable realization of our dependence on others for everything from entertainment, education, nourishment, and income came into stark, swift focus. And with it, how quickly those things can be taken away without warning because of that dependence.
In turn, the pandemic saw an insatiable industry of online self-improvement crash courses emerge on home garden horticulture, podcast making, home building, home schooling, and -- learning to trade financial markets to "ensure a steady livelihood despite economic setbacks."
The problem is, learning to trade isn't like learning to plant tubers in your backyard. It's much more complicated and can't be fully conveyed with mock "trials" or simulated positions. At best, many of such courses get people in the door, but not seated at the table of real-world practice and risk-management.
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