Analysis Topic: Investor & Trader Education
The analysis published under this topic are as follows.Tuesday, July 17, 2012
Witness the Epic Battle Between Stock Market Investor Hope and Investor Fear / InvestorEducation / Stock Market Sentiment
Can an investor ever know enough about financial markets to make a truly informed decision?
Even professionals must cope with imperfect knowledge, and the constant uncertainty that comes with it. That's why every investor looks to others for signals about what to do.
Read full article... Read full article...Have you ever watched a dog interact with its owner? The dog repeatedly looks at the owner, taking cues constantly. The owner is the leader, and the dog is a pack animal alert for every cue of what the owner wants it to do.
Tuesday, July 17, 2012
Forecasting Future Earnings The Key to Stock Market Returns / InvestorEducation / Learning to Invest
In Part 1 and Part 2 of this three-part series, we established the basic principles of valuation and provided evidence that backs those principles up. Then we demonstrated that valuation is a function of soundness based on the current earnings yield that any given level of earnings offers you. From there, we illustrated how the future rate of earnings growth, in conjunction with fair valuation, will be the primary determinants of future returns.
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Wednesday, July 11, 2012
Trading Forex with Elliott Waves Doesn't Have to be Complicated - Video / InvestorEducation / Forex Trading
Understanding the Wave principle doesn't have to be hard. In fact, as you'll see in this 5-minute clip, learning from EWI's Chief Currency Strategist Jim Martens can be downright entertaining.
Watch as the 20-year veteran analyst explains how learning to use Elliott waves can be as simple as counting to 5 and knowing your A-B-Cs.
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Tuesday, July 10, 2012
How to Become a Better Trader: Know Thyself / InvestorEducation / Learn to Trade
Jeffrey Kennedy has more than 20 years of experience as an Elliottician and trader. As editor of our new Elliott Wave Junctures service, he helps traders and investors improve their trading skills -- which includes expanding their own self-knowledge.
Read full article... Read full article..."If you are serious about trading, I strongly recommend that you spend as much time examining your emotions while you are in a trade as you do your charts before you place one."
Tuesday, July 10, 2012
Investors Learn to Think Nonlinearly / InvestorEducation / Learning to Invest
Is your portfolio limited by linear thinking? We believe so.
Many linear thinkers believe that to solve a problem, you need to follow a simple, logical path, a step-by-step sequence involving two variables. One and one is always two. Here's a diagram depicting the progression.
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Wednesday, July 04, 2012
How to Spot Trading Opportunities - Free 47page Ebook / InvestorEducation / Learn to Trade
What if you could look at a chart and see the potential trading opportunities?
Elliott Wave International (EWI), the world’s largest market forecasting firm, has just released a free eBook to teach you exactly that. How to Spot Trading Opportunities features 47 pages of easy-to-understand trading techniques that help you identify high-confidence trade setups. Senior EWI Analyst Jeffrey Kennedy will show you how some of the simplest rules and guidelines have some of the most powerful applications for trading.
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Saturday, June 30, 2012
How to Know What Rate of Return to Expect from your Stocks: Part 1 / InvestorEducation / Learning to Invest
We believe there are two critical attributes that the prudent investor should consider before investing in a company (stock). Furthermore, these same two attributes can be used to calculate a reasonable expectation of the future return the stock is capable of generating on their behalf. These two attributes are valuation and the rate of change of earnings growth. Valuation indicates whether or not the company's current earnings power compensates you for the risk you take, while the company's future rate of change of earnings growth will be the driver of future returns.
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Thursday, June 28, 2012
Using Standard Deviation & Probability to Trade Options / InvestorEducation / Options & Warrants
I recently discussed the ability to use implied volatility to calculate the probability of a successful outcome for any given option trade. To review briefly, the essential concepts a trader must understand in order to make use of this helpful metric include:
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Thursday, June 28, 2012
Read Prechter's Conquer the Crash for Free (8 Chapters) / InvestorEducation / Learn to Trade
In June of 2002, the notorious dot.com bust was making way for a powerful housing boom, the European Union was growing, and American involvement in the Middle East promised a "quick and easy victory."
Yet when EWI President Robert Prechter's first edition of Conquer the Crash published ten years ago on this date, he wrote:
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Thursday, June 28, 2012
How to Improve The Quality of Your Trades / InvestorEducation / Learn to Trade
You've heard it all before:
- If you want to trade using Elliott wave analysis, to succeed you first need to understand its rules and guidelines.
- You need a clearly defined trading strategy (what? when? how? etc.) and the discipline to follow it.
- Additionally, your long-term success depends on adequate capitalization, money management skills and emotional self-control.
Thursday, June 21, 2012
Lessons to Help Traders Find Trading Opportunities in Any Market / InvestorEducation / Learn to Trade
Dear Trader,
Have you ever looked at charts of the markets you followed and wondered: How can I look at a chart and find trading opportunities for myself?
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Monday, June 18, 2012
Options Trading Strategies: Taking the Mystery Out of Puts and Calls / InvestorEducation / Options & Warrants
Michael C. Thomsett writes: The hardest part of learning about options trading strategies is getting used to the language. Once you nail that, you're most of the way there.
Here are the terms you are going to need to learn to understand and use options. Keep in mind that the best way to master jargon is by applying it in real situations.
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Monday, June 18, 2012
Are Stocks Underperforming the Index? Case Study - Indonesia / InvestorEducation / Learning to Invest
There is always a believe that by holding Defensive Stocks and Blue Chips will enable you to weather the storm during a Financial Crisis. What we will be doing now is to build a case on whether holding on to stocks will outperform the Market Index. To do this we will use the Global Financial Crisis in 2008 as a backdrop in our study. We will be using the Jakarta Stock Exchange as a Case Study and our study will be based on the following assumptions.
- Period of comparison is from the 2007 High to Current value.
- Stocks in study will be the 10 largest listed companies in the JSX as of 2010
- Stock split and bonus are taken into account
Sunday, June 17, 2012
Investor Lessons to Learn from the Facebook Fiasco / InvestorEducation / Learning to Invest
Doug Casey, Casey Research writes: We have been accused at times - rightfully so - of being largely focused on the trials and tribulations of the newfound political economy. Given its place as one of the biggest contributing factors to the performance of the investment markets these days, it makes sense. However, there is one area of the economy that continues to grow, largely unabated by the foolish risk-taking of investment banks and the constant flow of bailouts and "easing" - it's the technology sector. This week, I had a chance to sit down with Doug Casey to get his thoughts on a subject that has long been near and dear to him as an investor and as a person, starting with the most talked about tech story of the past month, Facebook.
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Monday, June 11, 2012
Understanding Implied Volatility When Trading Options – Part 1 / InvestorEducation / Options & Warrants
We have recently discussed the importance of routinely considering the value of implied volatility in a historical perspective for each underlying before considering any of the various option positions potentially appropriate for trading a given underlying security, index, or ETF. Failure to consider this data represents a major cause of the failure of otherwise favorable option positions.
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Monday, June 11, 2012
Learning to Trade Currencies Using Multiple Time Frame Analysis / InvestorEducation / Forex Trading
Adam Green writes:What is multiple time frame trade analysis? This is the practice of using multiple time frames to determine the trend of a currency asset so as to determine the possible points of trade entry in tandem with the direction of the trend. This trade investment strategy was designed to solve the problem of traders getting into trades that are against the trend as a result of conducting analysis only on short term time charts.
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Wednesday, June 06, 2012
Options Trading: The Most Important Piece of Advice for Beginners / InvestorEducation / Options & Warrants
Michael C. Thomsett writes: Here it is. The most important piece of advice I have for anyone thinking about options trading.
Don't let the red tape hold you back.
A lot of experienced and sophisticated investors shy away from anything that involves paperwork.
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Tuesday, June 05, 2012
How to Ambush High Confidence Trades, Advice from a Trading Legend / InvestorEducation / Learn to Trade
Copy the tiger when stalking and capturing a "pounce-ready" trade.
Tigers know the prey they covet is elusive: they show great patience and care when stalking the target.
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Monday, June 04, 2012
The Tragic Investing Tale of "Big Al" Clifton / InvestorEducation / Learning to Invest
By William Patalon III writes: One of our core messages here at Money Morning - and one that we tend to repeat over and over - is that it is crucial for you to take control of your own financial destiny.
To underscore just how important this is, allow me to share a personal story I guarantee will drive this point home.
I've massaged the biographical details on this one a bit to protect the folks who are involved. But the rest of the facts are true.
Saturday, June 02, 2012
Investor Sentiment at Stock Market Bottom / InvestorEducation / Stock Market Sentiment
Ed Carlson writes: Everyone seems to be in on the ‘sentiment game’. Even non-technicians talk on CNBC and Bloomberg T.V. these days about throwing in the towel, capitulation, and washouts as if it’s something everybody watches and not just technicians. For the uninitiated the idea is that once sentiment (crowd psychology) has moved too far to one extreme (bearish or bullish) that the sentiment pendulum will then swing in the other direction. Call it reversion to the mean or what you will, it is a phenomenon which seems to hold throughout the human experience and the natural world. The ‘trick’ is to quantify an otherwise qualitative turn of events.
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