To succeed as a trader, you need to achieve two things. First, find a trading edge. Second, survive long enough for your trading edge to prove itself. The second goal, the goal of survival, is known as risk management. As a trader, you need a trading edge. But you also need to survive through drawdowns […]
The Low Volume Hint to Explosive Moves
Stocks with high volume get all the attention. Volume means participation. It means action. It is no wonder that traders like high-volume stocks and neglect the low-volume ones. But this approach misses the potential of low-volume stocks to find explosive moves. By low-volume stocks, I am not referring to thinly traded penny stocks. A prudent trader […]
How to Manage Gap Risk in Swing Trading
A hallmark of a consistent trader is risk focus. A paradox of trading is that thinking more about risk instead of profits, results in more profits in the long run. For a swing trader holding a position overnight, gap risk is the most challenging risk to manage. Gaps occur when the market opens away from the […]
Quick Trade Using Linear Regression Channel
Quick Trade Using Linear Regression Channel is a trading method from Bernie Schaeffer‘s book, “The Option Advisor: Wealth-Building Techniques Using Equity & Index Options“, which is an excellent introduction to options trading. It uses linear regression channels to identify trends that are poised to accelerate. Read this for more ways to trade using a channel. To get […]
