How Using the Money Flow Index (MFI) Can Give You an Edge

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How to Always Spot an Irrational Herd

In 2005, 450 sheep jumped off a cliff.

Then, another 1,500 followed for no apparent reason to sudden death.  Sadly, this same scenario plays out just like this all the time on the Street.  We just want to follow every one else, never questioning the rationale of the trade. 

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Why Technical Analysis Works So Well

Traders are often told to ignore the art of technical analysis.

“Technical analysis is fundamentally flawed,” says Forbes.

“I realized technical analysis didn’t work when I turned the charts upside down and didn’t get a different answer,” noted Warren Buffett.


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The South Sea Bubble: What We Can Learn from Irrationality

Sir Isaac Newton was one of the brightest minds in history.

He’s well known for his discovery of the laws of gravity and motion, and for having developed calculus, optics, a reflecting telescope, a great deal of other contributions in the field of mathematics.

Unfortunately, he wasn’t such a bright investor.

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China Stocks: How to Spot the Birth of a Boom

A lot of traders think of themselves as contrarians.

Unfortunately, when it comes time to pull the trigger on a contrarian bet, they freeze.  They can’t do it.  Fear rules the roost. 

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Opportunity in Crisis: Why Traders Don’t Always React

We don’t always know to react.

Others of us only react when others react.

It really depends on what we’re told.  For example, when the UK voted to exit the European Union, markets plunged as news spread.  Many of us reacted with fear of the unknown.

Months later, the world was hit with a cyber security scare and there was no reaction.

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How Sir John Templeton Would Have Traded China

Try to see the positive in the negative.

It may sound like a popular proverb.  But it’s how contrarians make their money.

Look at China in early 2017, for example.  At the time, the world gave up on it, as the economy lost momentum.  Short interest began to pile up.  The bears were filing out.

No one in his right mind would touch the market.

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