SMB Capital – Trading Education
The post Recording: Anne-Marie Baiynd: Iron condor strike selection and trading options using chart formations appeared first on FX FOREX.
Where do trends start from is a question worth considering from various angles.Once a low point in downtrend is established a new trend starts .If you want to find a trend very early then you need to start with stocks in downtrend. Once they stop going down and established a low , a new trend can start.If you see last few years you will see bulk of big explosive moves have happened from most beaten down stocks. You can find several hundred examples like NFLXThey go down and in many cases spend very little time near low and then explode many folds.In most rallies it is the beaten down stocks that have lead the up move.If you are focusing on stocks near 52 week high …
via stockbee:
One of the ways to find explosive moves is to focus on most beaten down stocks. It is not the only way, but for position traders it is one of the best way to enter new up leg early.
there are many points around a trend move where setups can be developed. There are lot of traders who focus on setup near 52 week high once trend is established. That is well documented setup idea.
But if you can identify trends early , you can find earlier entries. For position traders it can give you lot of time to research an idea.
For more info: Should you focus on beaten down stocks
The post Should you focus on beaten down stocks appeared first on FX FOREX.
I follow a combination approach looking for both very short term 3 to 5 days for swing trade and at the same time looking for big multi month moves. The two approaches require different mindset and understanding of the market. To find big moves you have to know what drives big multi month or multi year moves.What makes a stock go up a lot has fascinated traders and investors for ages. If one can isolate factors that lead to big moves then one can find those stocks. While many of these studies find same things, there is no “magic” formula to find a big winner.Frank Cappiello’s New Guide to Finding the Next Superstock is one of the book which focuses on this topic.Frank A. Cappiello is…
via stockbee:
What makes a stock go up a lot has fascinated traders and investors for ages. If one can isolate factors that lead to big moves then one can find those stocks. While many of these studies find same things, there is no “magic” formula to find a big winner.
Frank Cappiello’s New Guide to Finding the Next Superstock is one of the book which focuses on this topic.
Frank A. Cappiello is President of a McCullough, Andrews & Cappiello, Inc., a large investment counseling firm with offices in San Francisco, CA and Baltimore, MD. Frank Cappiello was best known to television viewers as a regular panelist of the PBS television series “Wall Street Week With Louis Rukeyser”. He appeared on it for over 20 years starting from first episode onwards.
The central premise of Frank Cappiello’s book on growth investing is that
“There are stocks and then there are super stocks, there is a stock market and there is a super stock market. And they barely know each other.”
Super stock according to him is a stock of small growing company which will beat the market significantly. His book was published before O’Neil book. It also gives a approach to trading growth stocks.
He studied the characteristics of some of the biggest historical winners for many years. All the things he finds about growth stock are more or less same as what the CANSLIM approach emphasizes in stock selection.
Small to medium size
Rising unit sales volume
Rising pretax profit margins
Above average and improving return of shareholders’ equity
Strong earnings per share growth relative to other stocks
A low payout ratio with rising dividends
Low debt ratio
Low institutional holdings
Increasing price earnings multiple
For more info: What drives big moves in stocks
The post What drives big moves in stocks appeared first on FX FOREX.
If I may …
It seems that certain people take issue when certain other people decide to opt out of the “popular choice”, here, a lifetime spent working for the sake of accumulating stuff, in other words, a typical career. One of the most common complaints can be traced to the first half of the Marxist refrain: “From each according to his ability … “. Wow! Just wow! I really thought we had moved past collectivism. Yet, indeed, certain people would have you believe that if you are talented or have an education, then you are obliged to use it and keep on doing whatever you were trained to do [like a good dog]. Of course a lot of what passes for so-called training is merely a “selection-process” designed to pick out those who are willing to focus their lives totally on work to the exclusion of acknowledging when enough is enough. I bet for a lot of people student loans and mortgages help to stay “focused”.
Now, I’m not sure that what is commonly deemed good for society actually is good. What I am seeing in society is stagnation and lack of strategic innovation as people keep pushing the pedal to the metal seemingly not realizing that pushing harder does not make them go faster and merely results in an abundance of bureaucratic red tape of committees, feasibility studies, and other menial busywork as institutions and government getter bigger and bigger and less and less efficient (and effective). Have you noticed how much more work is done increasing confidence than is done increasing accuracy? Confidence or precision without accuracy is useless(*). I mean, who are we trying to fool? Is that kind of work really worth it?
(*) I wonder whether the quest for precision instead of accuracy comes from our obsession with quantity instead of quality? Lemme splain. Presume that you want an estimate of some quantity. To get that you proceed to measure it not once but many times. Accuracy, then, is a measure for how close your estimate of the mean is to the actual value of the underlying process, that is, the quality of your model or measuring apparatus. Precision is simply a measure of your standard deviation. Precision can always be increased by taking more samples. Hence, precision is not inherently dependent on your quality of your model. One example. Suppose the true value is 4. Then a precise but not very accurate estimate is 3.734555 whereas an accurate but not very precise estimate is 4.1.
I would argue that I expect that people provide for themselves if they can. Doing otherwise suggests that they think that my time and effort is worth less than theirs. There is a difference here though in that I think that once people have provided for themselves, they are not under any further obligation. What I am saying is that people are not born indebted to society. Nobody should be automatically enslaved to anybody not even culturally or morally. Obligations should always be freely entered.
For more info: Rant on society’s expectations …
The post Rant on society’s expectations … appeared first on FX FOREX.
