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Why The $VIX Matters? The Hidden Secret The Pros Don't Tell You...
Why The $VIX Matters? The Hidden Secret The Pros Don't Tell You...
April 4, 2019
We all know that markets bounce around but generally move higher. One question I get all the time is "When should I look to short something that 'looks' overbought"?
The fastest money can come in shorting stocks because stocks tend to drop quickly when they do fall. The problem is they don't fall often. So how do you know when is a good time to look to go short?
One of the tools in my arsenal is looking at the $VIX chart in relation to the market, in this case, we look at SPY as the "market".
VIX is essentially a "fear gauge". It shows how much of a premium people are placing on puts in the market. If no one wants to buy puts, then there is no fear of a pullback, right? When people are nervous about a pullback, they will buy puts and this moves up the prices of VIX.
Now, here is a simple chart on VIX right now:
Notice on March 11th how VIX topped out and the SPY bottomed out. Both of those extremes make for a good place to start taking a gamble on a reversal. It happened to work out fantastically the 2 weeks after that.
Then when was the time to look to go short the new rally? Look no further than the 20th when VIX was signaling a bottom again. That was a choppy move, but it did lead to the SPY heading all the way back down to the 200-hourly just after the 25th.
Guess what? The VIX topped out again at that time. That is once again a great signal to go long the market (buy calls). That magically worked up to the point we have right now where VIX is signaling a short-term top again.
It doesn't mean the market can't go higher from here, but to me, this is the kind of place where you start to build short positions in the stocks you think have the most downside potential.
For me, an easy call is the IWM. That is the weakest of the major indexes right now, mainly because it is comprised of small companies that have the most risk to slower economic growth like we are facing right now.
I encourage everyone to take some time and learn to follow VIX and watch how it predicts general market moves. If you can master the tea leaves of reading the VIX, you are well on your way to making better-timed swing trades!
Forex 101: An Informative Guide for Beginners
Jeff Moore
June 06, 2018
New in the Forex market? This market may sound really complicated and scary to tackle but it’s not. Just like in any kinds of trade, you make money when you buy low and sell high. Forex trading is simply trading currencies in the Forex market.
Forex is the largest financial market in the world. It generates trillions of dollars of currency exchanges everyday and it operates 24 hours a day and seven days a week therefore, also making it the most liquid market in the world.
In the world of Forex, trading in this very liquid market is very unique compared to other financial market like stocks. Since the Forex market operates 24 hours a day worldwide, which starts at Sydney and ends in New York, trading is not centralized in one location. You can trade in Forex whenever you want regardless of the local time.
In the past, Forex trading was only offered to large financial institutions, like banks. And, it was also only offered to large companies, multi-national corporations and large currency dealers. This is because of the large and extremely strict financial requirements the Forex market imposed. This means that individual traders and small businesses are not able to participate in this liquid market.
However, in the late 90s, Forex was made available to individual traders and small businesses. This is due to the advances in the communications technology. High speed internet made it possible for people to enter the Forex market and have become one of the best make money at home businesses.
Forex trading is getting more and more popular each day. Besides, who wouldn’t want to trade in the largest and the most liquid financial market in the world? Trading in Forex will certainly give you the opportunity to earn a lot of money. However, trading in this ever liquid market also has its risk. It is a fact that many people who traded in Forex lost a substantial amount of money and some of these people are seasoned traders.
This is why it is very important for you, as a beginner trader in the Forex market, to have the proper knowledge and education on how to trade in the Forex market. Firstly, there are hundreds or even thousands of available websites in the internet that offers Forex education. Some of these websites offer dummy Forex trading where you can practice trading in the Forex market using dummy money.
These programs will really take you closer to actually trading in Forex. Many experts say that you’ll never really understand how Forex really works until you traded in the market. So, if you want to learn how to trade Forex, you may want to sign up for a dummy account that numerous Forex trading websites offer.
With a dummy account, you can trade Forex by not using real money at all. With this program you can practice your knowledge and skills in trading in the Forex market and not waste money.
To get started in trading in this market, all you need is a computer with a high speed internet connection, a funded Forex account, and a trading system. These three simple things are enough to get you started in Forex trading.
In order for you to minimize the risk of losing money, you need to have some basic knowledge in charting before you start trading. In most Forex trading systems, Forex charts are there to assist you with your trades. Forex charts are a visual representation of the exchange rates of currencies. This is where you will mostly base your decisions to buy and sell currencies. You have to learn how to read the different Forex charts in order for you to successfully trade in the Forex market.
Each Forex chart is different although they represent the same fluctuations. For example, in the daily Forex chart, you can evaluate market trends in the past 24 hours to help you make decisions on the next 24 hours of trading. In the hourly chart, you can use this chart to spot trends within the day. And, in the 15 minute chart, where it can help you recent currency fluctuations in a 15 minute interval to help you decide on which currency to buy and sell. Sometimes, there are 5 minute chart available to better help you get closer to the action.
These are the basics on how to trade in the Forex market. Always remember that aside from the promising earning potential that you can have in the Forex market, there are also underlying risks that you have to consider. It is therefore wise to trade in this market with a proper investment plan and strategy. If you are just starting out to trade in Forex, consider opening a dummy account to help you practice trading Forex without risking money.
Forex Trading: The Best Education You Can Have
Jeff Moore
May 24, 2018
People trade on a daily basis. Some trade their services for money, while others trade products like food, toys and other things for money. People trade to earn money to properly live their everyday lives.
This is why people work, why people put up businesses and why people trade in the financial market. Today, it’s all about money in order for you to give yourself and your family a comfortable life.
If you are considering making money aside from your day job or starting a career, you can do so by trading in Forex. Surprisingly, most people don’t understand how Forex works but are still interested to trade in this financial market. Besides, people would really want to trade in the largest, the most liquid financial market in the world.
Forex operates 24 hours a day and 7 days a week with no centralized location unlike other financial markets. It involves all the currency in the world and trillions of dollars are being exchanged everyday in this market, thus, making it the worlds largest and the most liquid financial market in the world.
The Forex market promises traders a promising way to earn money. However, Forex also has its risk and it is a fact that people lose money trading in this market. But, there are also people who became millionaires in the Forex market almost overnight. Education is the key to start trading in the Forex market. Without the proper knowledge in Forex trading, chances are you will end up losing money.
First of all, before you trade in Forex, this market is the buying and selling of currencies. In simpler terms, you, as a Forex trader, will be purchasing one kind of currency against another kind of currency. This gave Forex a trend to trade in pairs.
If you traveled to another country, chances are, you traded your currency against the local country’s currency to enable you to buy things from that country. If you did this, you have a good idea on how Forex works.
If you want to trade in this ever liquid market, you have to get the best education possible in trading currencies. A good education will enable you to trade in Forex more effectively and increase your chances of earning a considerable amount of money. It is even known that lots of people have quit their day job to concentrate in Forex trading.
Getting a good education about Forex trading will also let you increase your chances of profiting and decrease the risks involved. In getting the proper education in Forex trading, you will also learn how to read Forex charts. Forex charts are one of the most important things you should learn in order to successfully trade in the Forex market. Without this knowledge, you are doomed to fail in this very liquid market.
Expert Forex traders said that the best way to learn Forex is by actually trading in the Forex market. For this, website developers and software developers have developed a program that you can use to practice trading Forex. There are websites available that will enable you to open a dummy Forex account where you can trade in a simulated Forex market using no money at all. With this kind of software, you can really learn the way Forex works. It is also a great program to get the feel of the Forex market and you can even consider it as a stepping stone to start trading in a real account.
Thanks to the internet and the advancement in technology, everyone can trade in this financial market. Unlike in the past, only the multi-national companies and financial institutions, such as banks are allowed to participate in the Forex market.
Trading Forex is relatively easy to start. All you need is a computer with an active internet connection (high speed internet), a funded Forex account, and a trading system.
Always remember beside the fact that Forex can give you the potential to earn a lot of money, the risks involved is also equally great. So, you should first read books about Forex trading that is readily available in the internet for purchase or for download. You have to learn about the major currencies traded in the market, about leverage, and also about minimizing the risks in trading.
A Disciplined and Organized Approach to Trading in the Stock Market
A Disciplined and Organized Approach to Trading in the Stock Market
Jeff Moore
May 24, 2018
A Winning Approach to Trading in the Stock Market:
Many traders lose simply out of ignorance. They base their trades on hunches, news, or tips from friends, and do not define specific risk and profit objectives before placing trades. Others have the merit of educating themselves but fall victims of their emotions. They hold on to losing positions hoping they will turn into winners and sell winners by fear of losing a small gain. They over trade to fulfill a need for action or by fear of missing out.
The consistent winners follow a winning approach:
1. They have a strategy to enter and exit trades
2. They use good money management
3. They take consistent actions, they follow a trading plan
4. They keep good records so they can review their actions
5. They avoid over trading
6. They have a winning attitude
A strategy to enter and exit trades:
You need to a strategy to put the odds in your favor for each trade you take. Your strategy should be as objective as possible and include the following elements:
1. Entry: conditions required before you can enter a trade - may include technical analysis, fundamental analysis, or both.
2. Initial stop loss: price at which you will close the entire position if it does not go in your favor. The risk per share is the difference between the entry price and the initial stop.
3. Initial price objective: price at which you will take some or all profits if the trade goes in your favor.
4. Trade management: set of rules that dictates your actions while a trade is opened. It may include trailing stops, closing position, etc. For every action you take, the reason should be clearly described in your strategy.
Money management rules to keep losses small:
The goal of money management is to ensure your survival by avoiding risks that could take you out of business. During your learning phase, your goal should be to survive, not to make money. Start with low limits and raise them as you become a consistent winner otherwise you will simply go broke faster. Your money management rules should include the following:
1. Maximum amount at risk for each trade. The different between your entry price and your initial stop loss is your risk per share. Your maximum amount at risk for each trade determines the share size.
2. Maximum amount at risk for all your opened positions.
3. Maximum daily and weekly amount lost before you stop trading and/or avoid trying to trade your way out of a hole after a loosing streaks.
Good record keeping:
Although the process of gaining experience cannot be rushed, it can be made much more efficient by keeping good records of your actions. Good records will allow you to:
1. Review your actions at the end of each day to make sure you followed you strategy, not your emotions.
2. Learn from your losses; they cost you money, make sure you get the education in return. 3. You should also keep a journal of your observations.
A trading plan to keep emotions out of your decisions:
During trading hours, emotions will turn smart people into idiots. Therefore you have to avoid having to make decisions during those hours. This requires a detailed trading plan that includes your strategy and your money management rules.
For every action you take during trading hours, the reason should not be greed or fear. The reason should be because it is in the plan. With a good plan, your task becomes one of patience and discipline. You have to follow the plan without exception. Any valid reason for an exception - for example, correcting an oversight - should become part of the plan.
Avoid Over trading:
Sometimes the best thing to do is to do nothing. Not trading on those bad days is key to becoming a consistent winner; in some situations it is very tempting to over trade. If you trade to fulfill a need for action, to relieve boredom. If you can't find the proper setup then you must have the patience to wait. If you fear you are missing out on a great trade or on a great market. If you want to make up for losses (revenge). If you trade to feel like you are working instead of sitting around.
How To Begin Trading The Markets... Where Do I Start?
How To Begin Trading The Markets... Where Do I Start?
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The Top 10 Rules For Stock Trading Success
Written by Jeff Moore
May 11, 2018
Your stock trading rules are your money. When you follow your rules you make money. However if you break your own stock trading rules the most likely outcome is that you will lose money. Once you have a reliable set of stock trading rules it is important to keep them in mind. Here is one discipline that can reap rewards. Read these 10 rules before your day starts and also read the rules when your day ends:
Rule 1: I must follow my rules:
-Naturally if you develop a set of rules they are to be followed. It is human nature to want to vary or break rules and it takes discipline to continue to act in accordance with the established rules.
Rule 2: I will never risk more than 3% of my total portfolio on any one stock trade:
-There are many old traders. There are many bold traders. But there are never any old bold traders. Protecting your capital base is fundamental to successful stock market trading over time.
Rule 3: I will cut my losses at 5% to 15% when I am wrong without question:
-Some traders have an even lower tolerance for loss. The key point here is to have set points (stop loss) within the limits of your tolerance for loss. Stay informed about the performance of you stock and stick to your stop loss point.
Rule 4: Never set price targets on your intermediate term trades:
-This is a style that will allow me to get the most out of rising stocks. Simply let the profits run. Realistically, I can never pick tops. Never feel a stock has risen too high too quickly. Be willing to give back a good percentage of profits in the hope of much bigger profits when trading the intermediate term trend. The big money is made from trading the really BIG moves that I can occasionally catch.
9 Survival Tips For The Market Shakeout Blues
Written by Jeff Moore
May 2, 2018
Investors who buy during the top of a market rally often times panic or kick themselves, because all great rallies eventually come to an end. Neither activity helps an investor or trader think straight. Below are a few tips in dealing with a market shakeout.
1. If you believe you invested in the right stock(s), then turn off your computer and do something enjoyable. Exercise is a great stress reliever. The market has already begun its shakeout. If you didn’t get stopped out, or failed to place earlier stops, your best opportunity lays ahead in picking up additional shares at a much lower price.
2. Do you believe the fundamentals which engendered the commodities boom have changed? If they haven’t, then the bullishness is only taking a breather. We don’t see any fundamental change in the markets. Russia still wants nuclear power, and its oil production may be peaking. China hasn’t announced the end of its nuclear expansion program. India wants to spend $40 billion on new nuclear reactors. If you are invested in uranium stocks, spot uranium jumped another dollar to $45/pound this past week. Hardly the end of the bull market.
3. If you worry about your investment in one stock or another, then stop watching the ticker and focus on the company fundamentals. Is the story still true or has it changed? See #7 A, B and C below.
3 Steps To Profitable Stock Picking
Written by Jeff Moore
April 1, 2018
Stock picking is a very complicated process and investors have different approaches. However, it is wise to follow general steps to minimize the risk of the investments. This article will outline these basic steps for picking high performance stocks.
Step 1. Decide on the time frame and the general strategy of the investment. This step is very important because it will dictate the type of stocks you buy.
Suppose you decide to be a long term investor, you would want to find stocks that have sustainable competitive advantages along with stable growth. The key for finding these stocks is by looking at the historical performance of each stock over the past decades and do a simple business S.W.O.T. (Strength-weakness-opportunity-threat) analysis on the company.
If you decide to be a short term investor, you would like to adhere to one of the following strategies:
a. Momentum Trading. This strategy is to look for stocks that increase in both price and volume over the recent past. Most technical analyses support this trading strategy. My advice on this strategy is to look for stocks that have demonstrated stable and smooth rises in their prices. The idea is that when the stocks are not volatile, you can simply ride the up-trend until the trend breaks.
b. Contrarian Strategy. This strategy is to look for over-reactions in the stock market. Researches show that stock market is not always efficient, which means prices do not always accurately represent the values of the stocks. When a company announces a bad news, people panic and price often drops below the stock's fair value. To decide whether a stock over-reacted to a news, you should look at the possibility of recovery from the impact of the bad news. For example, if the stock drops 20% after the company loses a legal case that has no permanent damage to the business's brand and product, you can be confident that the market over-reacted.
My advice on this strategy is to find a list of stocks that have recent drops in prices, analyze the potential for a reversal (through candlestick analysis). If the stocks demonstrate candlestick reversal patterns, I will go through the recent news to analyze the causes of the recent price drops to determine the existence of over-sold opportunities.
Step 2. Conduct researches that give you a selection of stocks that is consistent to your investment time frame and strategy. There are numerous stock screeners on the web that can help you find stocks according to your needs.
Step 3. Once you have a list of stocks to buy, you would need to diversify them in a way that gives the greatest reward/risk ratio. One way to do this is conduct a Markowitz analysis for your portfolio. The analysis will give you the proportions of money you should allocate to each stock. This step is crucial because diversification is one of the free-lunches in the investment world.
These three steps should get you started in your quest to consistently make money in the stock market. They will deepen your knowledge about the financial markets, and would provide a sense of confidence that helps you to make better trading decisions.
5 Steps To Researching a Stock Trade Before Investing
Written by Jeff Moore
March 30, 2018
Keep it simple when first starting out, using too many indicators in the beginning is a ticket to the land of big losses. Get very comfortable using one or two indicators first. Learn their intricacies and you'll be sure to make better trades.
4. Follow your picks Once you have placed a few stock trades you should be managing them properly. If the trade is meant to be a short term trade watch it closely for your exit signal. If it's a swing trade, watch for the indicators that tell you the trend is shifting. If it's a long term trade remember to set weekly or monthly checkups on the stock.
Use this time to keep abreast of the news, determine your price targets, set stop losses, and keep an eye on other stocks that you may want to own as well.
5. The big picture As the saying goes, all ships rise and fall with the tide. Knowing which sectors are heating up stacks the chips in your favor. For example, if you are long (expecting price to go up) on an oil stock and most of the oil sector is rising then more likely than not you are on the right side of the trade. Several trading platforms will give you access to sector-wide information so that you can get the education you need.
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Candlestick Analysis 101 - How To Read Candlestick Charts
Written by Jeff Moore
March 28, 2018
Candlestick Analysis 101 - How To Read Candlestick Charts
DOWNLOAD MY FREE 10 COMMON TRADING ERRORS PDF here: https://tradingpart-time.com/freedocument
Trading the stock market, and understanding how to read candlestick charts and candlestick analysis, doesn’t have to be difficult. In this video, I'll show you the exact steps how to read candlestick charts and master candlestick analysis. Whether you’re a beginning stock market trader or not, I will show you how to read candlestick charts, read stock graphs, how to read technical analysis charts and do all of this despite the government or any news events.
Knowing how to read candlestick charts and tips to trading the stock market, such as candlestick and technical analysis, is one of the most effective techniques any stock trader can learn (despite the government or news events).
Watch this video if you want to learn how to read candlestick charts and candlestick analysis despite the government or any news events.
-Candlestick Analysis 101
-Recognizing the trend of the stock market
-The importance of reading momentum and candlestick patterns
-The importance of understanding the trend of the stock market
-BONUS: how to identify the high, low, open and close on a candlestick chart
In this video I will teach you candlestick analysis and how to read candlestick charts 101.
It is critical to focus on candlestick analysis and the importance of trading without letting your emotions getting involved. Just read the candlestick charts and trade with the direction of the trend. You must have fearless market analysis... NO FEAR!
Download: The 10 Common Trading Errors Cheat Sheet here: https://tradingpart-time.com
Technical Analysis - How The Pro's Trade The Stock Market Using Technical Analysis
Written by Jeff Moore
March 25, 2018
How To Trade Bitcoin Charts For Beginners: Is Bitcoin a fast money making scam?
Written by Jeff Moore
March 21, 2018
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About Author: Jeff Moore
Jeff Moore is the founder of
The Floogiel Trading Co. and author of the book, Trading Part-Time. He offers coaching & mentorship to individuals wanting to learn how to make money trading the stock market.
About Author: Jeff Moore
Jeff Moore is the founder of
The Floogiel Trading Co. and author of the book, Trading Part-Time. He offers coaching & mentorship to individuals wanting to learn how to make money trading the stock market.
I speak and mentor students regarding stock trading and technical analysis on a daily basis. Before you speak with me, there are a few things you need to know. Click here to find out how.
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