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.” As this trading strategy is designed for trading options, it aims to find a quick trade that does not drag beyond a week. This trading style is suitable for any trader who […]
Traders’ Survival Guide: A Primer On Risk Management
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 […]
