Trading without a plan is a lot like driving a souped-up muscle car without a steering wheel. You can press on the gas all you like to try to get where you want to go, and even pump the brakes to try to slow things down. But without a wheel, you’re at the mercy of the car’s drift toward inevitable disaster. It’s so easy to get wrapped up in the excitement of trading. There’s an overpowering urge to just try
Read nowThe stock market is very strange right now. You may be loving life if you’re in a handful of specific stocks, but the truth is most stocks have sucked wind this year. If you look at just the indexes, you see a market that is up big. And that’s true. But you can’t judge a book by its cover, and those of us who dig deeper into the data see trading not normally associated with strong bull markets.
Read nowAs investors, we’re often our own worst enemies. We like to believe that we make rational decisions with our money. Unfortunately, we often fall victim to subconscious errors in our thinking. There are endless ways human nature can trick us into making less-than-ideal choices with our money. Some of the most common ones are called “cognitive biases.” So today, I’d like to share five common biases that often lead investors astray and how you can protect yourself from them. (These
Read nowThe big day is finally here. It’s an event my fellow stock nerds and I get excited about four times each year. It’s earnings season time once again! And some of the biggest banks, like JPMorgan Chase (JPM), Citigroup (C), and Wells Fargo (WF), crank things up beginning tomorrow. Not excited? That’s okay. I understand. I don’t expect earnings “watch parties” to be high on most people’s list of fun things to do, though my calendar is full of them. But it can’t be ignored. Quarterly earnings give us the most information we ever get about a company’s business.
Read nowIt’s election season, and you know what that means… Let the mudslinging begin! After the June presidential debate, I’m sure many are wondering not only who’ll win in November… but also what it will mean for markets. Now, we all know that no one can predict the future… However, history often teaches us lessons when we look back. Given it’s an election year, we’re going to study a few awesome data points: No matter if you’re a die-hard donkey or
Read nowWe’re smack in the middle of a historical profit bonanza… Here’s the best stocks to own… But watch for a volatile end to the summer rally… Why a short-term strategy is ideal for right now… Trade Cycles readers couldn’t agree more… And the AI trade is not invulnerable… We’re right in the middle of what’s historically one of the best times to own stocks all year. Yes, you read that right. Two months out from “Sell in May” and four
Read nowWe can sometimes snooze through the sleepy summer months, but when it comes to July, it really can be a case of you snooze, you lose. July is historically strong, and after recent volatility under the surface, now should be a great time to buy superior stocks on a pullback. But, as always, the question is... which stocks?
Read nowAfter a stunning first half, with the S&P 500 up 14.48%, it’s time to take stock of what sectors are positioned to gain in the coming months. Last week, we reviewed history and found that strong first halves for the market only mean the good times will keep rolling. When the market gains 10% or more in the first six months, that momentum continues with more outperformance in the back half. But are we just going to ride the benchmarks higher? Why
Read nowAs a Power Trends reader, you are well acquainted with my firm belief that successful investors take their emotions out of their decisions and rely on data. That’s the whole point of my Quantum Edge system, which I developed after learning the hard way. I want to introduce you today to Tom Gentile, who similarly overcame some early struggles and developed a proven and successful system that generates profits. Tom is more of a shorter-term trader than I am, but his work is impressive and worth learning about.
Read nowThese are the most oversold stocks in the market… Here’s why, and how it could change soon… A new crop of Big Money targets… Nvidia’s insider selling is no warning sign… In case you missed it: an interview with a self-made trading millionaire… Scanning through the most oversold sectors on the TradeSmith Analytics dashboard, exclusive to our esteemed Platinum subscribers, three tickers stood out to me: the Invesco Solar ETF (TAN), the Select Sector Materials ETF (XLB), and the iShares Home Construction
Read nowNote from Michael Salvatore, Editor, TradeSmith Daily: In trading, it’s easy to overcomplicate things. The financial world practically begs you to dive deep into its endless web of assets, derivatives, and the complex relationships between each. But something I’ve learned from watching the experts trade is that often, keeping it simple yields the best results. Look no further than Tom Gentile for the proof. Tom’s a self-taught trading master who’s developed several simple, but effective, strategies that revolve around money
Read nowToday, a thought experiment… Imagine you hear that a particular variety of apples is rapidly rising in price. So, you invest in an orchard that’s planted them. While you wait for the trees to grow and yield fruit, the price is going vertical. Come harvest time, you wind up with big bushels of juicy “Liliana apples,” and you take them to market to cash in. Only one problem: You’re too late and the trend has moved on. These apples are
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