The market is lacking direction. Set-ups that have worked for me in the past are no longer working (long or short). There is no identifiable trend to trade. Yesterday’s big move to the upside lacked volume and could have simply been short-covering as traders exited positions ahead of the election.
I’ve come to learn that stock trading is all about process. That is: you must have a process, you must stick to your process, and, most importantly, you must have a passion for your process. If you view trading as a continuous process, it becomes much easier to recognize what the market is telling you.
Best selling stock market books with titles like Beating the Street imply that the stock market is a game to be won. But what they don’t tell you is this: your lifelong understanding of games prevents you from intuitively understanding the stock market. Continue reading “Stock Trading 101: It’s All About the Process”
On Sunday night MGT Capital Investments $MGT was an unknown penny stock involved in online gaming and fantasy sports. By Monday morning $MGT had announced that they were buying John McAfee’s cyber security company, naming the cyber celebrity as their new CEO, and renaming the company to John McAfee Global Technologies.
For the upcoming week, I have NanoString Technologies $NSTG on my watch list. There is a lot to like about this stock for a potential swing trade. This stock has a small float, a high short interest, and a good looking chart, which can be a great combination for a short-term breakout. $NSTG has been consolidating nicely since the beginning of March which has led to a rising 50 day moving average that is close to crossing the 200 day moving average; this is a bullish technical indicator known as the Golden Cross. In addition to the possibility of a Golden Cross, the chart is presenting a Symmetrical Triangle, which in combination with the rising 50 day moving average, is another bullish indicator.
The rhetoric associated with the Presidential primaries has led to fears that America’s right to bear arms, as described in the 2nd Amendment, could be in jeopardy. The passing of Supreme Court Justice Antonin Scalia on Saturday will likely be a gas can thrown on the fear fire as it is perceived as unlikely that the President will appoint a Justice, to replace Scalia, that is friendly to the 2nd Amendment.
This makes the gun stocks like Smith & Wesson (SWHC) and Sturm, Ruger & Co. (RGR) worth a serious look for a potential swing trade. These stocks were setting up nicely prior to Saturday’s sad news. Continue reading “The Gun Trade May Be On: $SWHC $RGR”
I’m on a bit of a Twitter (TWTR) rant lately. That is to say that Twitter has been on my mind both as an investment and as a platform I use daily. I find tremendous value in Twitter and this has caused me to give a great deal of consideration to its documented failings. Twitter the stock has been obliterated due to an inability to grow the monthly active user base while Twitter the company has been chastised for allowing anonymous accounts to post hateful and abusive messages and otherwise harass users whose opinions differ from their own. All of this is happening while Twitter is in the midst of an identity crisis, not because new users expect it to be more like Facebook (FB) but because those who are not using Twitter are wondering why they would need another Facebook. Continue reading “A Solution to the Identity Crisis @Twitter”
If there is one thing the markets have taught me over the years, it’s this: becoming proficient in markets is a continuous process and continuous processes deliver lessons continuously. Here are five lessons I learned (or relearned) in 2015: Continue reading “Stock Trading 101: Five Lessons Learned in 2015”