I am regularly asked about how to find the best stocks for options trading and in 2017 & 2018. The process below is for finding a suitable list of stock to have on my core list which Ive been using for many years.
You need your own core list or universe of stocks because looking at every stock in the known universe is stoopid and I certainly have got time to scan 12,000+ stocks without having some really critical filtering
Lets also agree that you do not need to look at every stock as some just are not worth the time or effort.
Thankfully there are many software tools and online tools both free and paid that will help you create a suitable universe of stocks for you to draw from in your day to day trading.
This short check list is something that I run through once or twice per year to ensure I have a liquid pool of stocks that have potential to move and do interesting things with which to draw my daily stock selections from. Continue reading . . .
I saw this piece of advice earlier on the interweb as being a “good piece of advice” for investing
I couldn’t help but think what I redundant piece of bullshit advice
Without any qualifier whatsoever, you might as well say “avoid juggling with kitchen knives”
High Risk in most contexts is what the dumb folk call;
“A good opportunity, but I don’t have a fecking clue what do with it!”
Ahoy there, It’s Phil
While the world is going mad over Tesla dropping a few percentage points (and of course the media is lapping it up). There is still nothing to panic over, at least for the moment.
There is also an army of people who can talk about the company profile and order book profiles and projections and other such fundamental view points, I just never got around to figuring that stuff out beyond a few helpful ratios.
From a technical charting perspective on the weekly charts, this is still a break out candidate and this sell off which was news related is simply the pullback portion of this set up. Continue reading . . .
Why trade options instead of stocks? I love this question because I’ve done both and a whole range of other markets and instruments over the years and right now I absolutely know stock options are the best vehicle to use to trade stocks.
The why is simple.
Stock options are the greatest use of my resources.
Stock options are cost effective because I can control the same 100 shares for a fraction of the cost.
Margin requirements only require the purchase price to be paid and no longer do you need the margin for the stock you control (they assumed you would take delivery) Continue reading . . .
Before we get into to the meat and potatoes of support and resistance, I will be focusing my examples on stocks support and resistance but these methods can equally be applied on forex (which I spent 12-yrs day trading and swing trading) or index futures (which Ive been trading since 2001) or any market you care to trade with a chart based trading system.
With that said, lets get started.
In stock market technical analysis the terms support and resistance are used when a stocks price moves down to a lower level and then goes no further (at least temporarily) in this example it is often called support.
The opposite is also true in that when a stock price moves to a higher level and then goes no further (at least temporarily). This is often called resistance.
These support and resistance levels are often interchangeable with other terms such as supply and demand levels, levels of interest.
Most commonly, I refer to these points on the charts as logical stopping points. Continue reading . . .
Ahoy there, Its Phil
If it’s your last dollar – keep it because I don’t want it
From time to time I get people asking me the “if Im so good…” type of questions
You know the ones;
Ive done all of those things and more.
The interesting thing is that over the last 15 years of being a stock market mentor and teaching people how to be successful traders that last question is the tricky one. Continue reading . . .
Ahoy there, Its Phil
One of the big problems with trading the stock market, or any market you like, is the waiting.
There is a heck of a lot of waiting around for things to happen, develop, generate and generally giddy-up.
Problems that this can cause is boredom and over trading because lets face it most people and especially new traders think that trading is clicking the mouse a lot of times in quick succession. Continue reading . . .
Before looking at how to draw a trendline for trading stocks, we must first consider how not to draw trend lines.
Firstly, any two point of reference can be connected to create a trendline.
While it is true that technically you do have a trendline bit simply Connecting any two points does not mean that you have a tradable trendline.
You can see on this chart below that if you can easily connect any two swing highs or swing lows (see the price action article for more price action information) Continue reading . . .
Back in the mid early to mid 90’s I was asking myself which stocks I should buy tomorrow? or what shares to buy now?
The funny thing about that is that I was searching for the answer to that question before I knew what the questions was.
Just like you, I would read and reread 1100 page books on technical analysis like Schwager on futures and McMillan on options. These are huge books full of dry information.
I remember this well, I was half way through Schwager on futures on a quiet sunny Sunday morning while working at Blockbuster video (remember them? I got in to this really early on hand drawing charts at 16, “Blocky” was my part time job at the time while I was at university).
Anyway, part way through I asked myself this very question; Continue reading . . .