How to Use MACD and RSI in Your Trading

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Two Ways to Trade Earnings with Options


Earnings season can offer good opportunity for options traders.

Unfortunately, buying options ahead of earnings may not be the best strategy, some traders have warned. “The uncertainty surrounding an earnings release creates a huge bid for implied volatility ahead of the release. Once the earnings come out, volatility drops, and this can hurt long options positions,” notes CNBC.

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How a Simple Law of Physics Can Identify Large Breakout Opportunities


Picture a bungee jumper diving off a bridge. He drops into a free-fall completely trusting the cord attached to him. As  he reaches the  bottom of his descent, the cord starts to stretch, until the elasticity reaches its peak. Then in an instant.  he get's propelled back up ward with high velocity.

Can This Simple Law of Physics Help You Uncover Huge Moves in Stocks? 

It's quite possible. In fact, it happens more often than you might think. Like the bungee jumper in the picture above, a stock will make a move to the downside, pause, and then make an explosive move to the upside, often times with 100% gains or better. 

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Augmented Reality Technologies Revisted


The early bird gets the worm, just as the early investor reaps the rewards.

Stocks like Himax Technologies (HIMX) may not look healthy at the moment -- even with a PEG ratio of 0.55 -- but it’s all about buying before the big news.

What’s most exciting is the company’s involvement in augmented reality, which can blur the line between what’s real and what’s computer-generated by enhancing what we hear, see, feel and even smell. And it could change gaming significantly.

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How to Spot Potential Breakout Opportunities


Great traders will always go where the action is. 

Volatility, momentum, new highs, and liquidity are some of the key traits they’ll look for. Other times, there’s a fundamental reason for the break, including news, or event that’ll draw even more traders in.

Just what is a breakout, though?

A breakout occurs when a price clears a critical resistance points on a chart.  It could be a trend line, support, or resistance level – all of which represents the sentiment of traders.

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What Momentum Oscillators Can Tell Us


Sir John Templeton wasn’t your typical Wall Street money manager.

His Templeton Growth Fund averaged a 14.5% return for 38 years, crushing the major indices. Every $10,000 invested in that fund in 1954 was worth well over $7 million by 2005.

What set him apart was the fact he never had a forecasting system, an ability to get out before a big market crash, or any other hard-to-replicate strategy.

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What Relative Strength Tells You at Any Time


One of the best ways to find opportunity is by spotting excessive fear and greed.

But that’s easier said than done.  Or so we think.

While none of us have a crystal ball, or hold the Holy Grail to trading secrets, you can give yourself an edge by simply paying attention to what herd mentality is telling you.

 

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