Over the last 22 years, I’ve heard countless arguments for and against fundamental and technical analysis. While neither is perfect, they both have strengths we can capitalize on.
Fundamental analysis shows us what’s under the hood.
At its very core, it helps us arrive at a stock's intrinsic value. It helps us see:Read More
Fear can destroy a stock in seconds.
But it can also lead to quite a bit of opportunity.
Look at Coca-Cola (KO), for example in late February 2019.Read More
One of the best ways to spot reversals is by spotting excessive fear.
To do so, we typically watch for agreement among Bollinger Bands (2,20), MACD, Relative Strength (RSI) and Williams’ %R in either overbought or oversold territory. However, we can also strengthen what those indicators say by adding in the Money Flow Index (MFI).Read More
With the incredibly popular Avengers: Endgame film, shares of Disney Co. exploded from a low of $107.50 to $142.50 in April 2019.
After the film grossed $1.2 billion in its opening weekend (biggest in history), analysts were still seen raising price targets. JP Morgan noted the stock could run to $150 a share by the end of the year. The firm also increased its full-year earnings estimates to $6.80 a share from $6.69 thanks to better than expected film performances in the year. For 2020, the analysts hiked their estimates to $6.50 from $6.35 a share, as well.Read More
Buy low and sell high.
In other words, buy when a stock is in the dumps, and sell it at a peak.
It’s the best investment advice ever given. The problem is most people do the exact opposite. They sell low. Then, they buy high. They just sucked into the psychology and begin to trade on raw emotion instead of basing decisions on rational thought.Read More
One of the best ways to improve your trading is to experiment.
It’s how I found that a combination of Bollinger Bands (2,20), MACD, relative strength (RSI), Williams’ %R, and Money Flow (MFI) can help lead to success as high as 80%.Read More