TheStockBandit.net

Trend lines are a key element of chart patterns and technical analysis. While the most common use of trend lines is to connect consecutive highs or lows, the extensions of trend lines can often prove to be valid. Read more »

Short selling can generate some nice profits….quickly. Maybe that’s why the word short is used – because it can be such a quick trade.

I noticed OPMR this afternoon and cringed for those traders caught on the wrong side of a short squeeze. Read more »

The Great Bear, Jesse Livermore, is credited with many trading axioms still used today. One such phrase certainly applies to the market we’re facing right now:

“There is only one side to the stock market; and it is not the bull side or the bear side, but the right side.”

Right now the Nasdaq and S&P 500 indexes (depending upon your timeframe) are stuck in trading ranges. Tonight the S&P 500 is facing a potential breakout, but we haven’t seen it yet. It truly is a market of stocks right now, which means there are some swing trading opportunities on both the long and short sides of the market. It’s a good idea here to focus on trading the best setups rather than insisting on forcing trades in any one direction. Do your homework, scan for chart patterns, and trade the best setups with great risk/reward profiles. Don’t marry an opinion tied to the bull or the bear side, but make your day’s pay by trading them both!

Find both long and short trading candidates in my stock newsletter and get a natural hedge in a choppy market!

Jeff White
President, The Stock Bandit, Inc.
www.TheStockBandit.com

I believe we can learn a lot from other traders, and the mentality that keeps us willing to learn is the same one that allows us to take a small loss or book profit on the way up. We don’t need to be perfect in the trading business to do quite well! Having some trading rules in place sure can help, though.

Recently I ran across Dennis Gartman’s Rules of Trading, which I highly suggest you check out. Dennis a well-known trader and market analyst, and his rules can help any trader in any market.

My favorite rule of his?

“Do more of what is working and less of what is not working.”

Easy to remember and a great reminder to maximize winning trades and minimize the losses. Simple but not always easy!

What is your favorite trading rule?

Jeff White
President, The Stock Bandit, Inc.
www.TheStockBandit.com

Anytime headlines come out on a stock you’re trading, you’ll probably know it. Today I was long CHNR when a negative headline hit and this stock changed character quickly. When that happens, it’s best to remember the day trader’s motto: “sell now and ask questions later!” With commissions so cheap these days for direct access trading, Read more »