Analysis Topic: Investor & Trader Education
The analysis published under this topic are as follows.Thursday, December 01, 2011
Will the Efficient market Hypothesis and Random Walk Theory still valid in Today's Market / InvestorEducation / Learn to Trade
Efficient market Hypothesis refers to the condition whereby the current prices of the securities have already incorporated any news that arises from those securities without delay. In other words, the pricing of any security will be so efficient that there will not be any opportunity to arbitrage the price differential before and after the news is released.
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Wednesday, November 16, 2011
Investors Three Psychological Stumbling Blocks That Kill Profits / InvestorEducation / Trader Psychology
Keith Fitz-Gerald writes: Face it, the past 12 years have been horrible for most investors.
This is not necessarily because the markets have been rocky, but rather because the vast majority of investors are hardwired to do three things that kill returns.
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Tuesday, November 08, 2011
Are Crowds Capable of Identifying Stupidity? / InvestorEducation / Trader Psychology
Herd opinion seems to be a chronically troublesome matter for the allocator of capital. Not only does the herd hold a deep suspicion for making money as such, but it seems that agreement is regarded as an imperative when it comes to considering the future. I might contend that the question; ‘How dare they consider that which all of us are unable/unwilling to consider?’ contains the primary sentiment behind the crowd’s contempt and condemnation… Supposing that this suspicion is true it might be considered quite important for us, as speculators, to overcome this. As ever, we think that it is contrary thought that reveals the key to prudence. Here I invite you to mull over the controversial question in the title; is the crowd capable of correctly identifying intelligence and stupidity?
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Thursday, November 03, 2011
Corporate Earnings: Stock Market's Brightest False Beacon / InvestorEducation / Corporate Earnings
Four times a year, investors and Wall Street watch the quarterly corporate earnings reports, trying to anticipate the trend in stocks. Another earnings season is upon us right now, so read this excerpt from our free Club EWI report, "Market Myths Exposed."
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Wednesday, November 02, 2011
Three Lessons From the Collapse of MF Global / InvestorEducation / Learn to Trade
Martin Hutchinson writes: In today's politically charged atmosphere, it's nice to occasionally find a situation in which everybody wins. And that's exactly what we have with the collapse of MF Global.
Politically, this failure unites both liberals and conservatives.
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Tuesday, November 01, 2011
How Do You Get from Dow Theory to Elliott Wave Analysis? / InvestorEducation / Elliott Wave Theory
If you are interested in Elliott wave analysis, odds are that you have also heard of Dow Theory, whose best and longest-lived proponent is Richard Russell. (Best wishes to Richard as he recovers his health.) This excerpt from Prechter's Perspective explains how Elliott wave analysis and Dow Theory are connected. We wanted to run it now in honor of the 160th anniversary of the birth of Charles Dow, which the Market Technicians Association celebrates on Wall Street on Thursday, November 3, 2011.
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Friday, October 28, 2011
In Defense of Flash Trading / InvestorEducation / Learn to Trade
It's fascinating to watch footage of a trading floor on Wall Street. Here men and women spend hours with their eyes glued to computer monitors while furiously calculating trades that often yield small profits or minimal losses. In the case of Swiss bank UBS trader Kweku Adoboli, it can result in a $2 billion loss and an unfortunate incarceration. The risks run high as trading requires a sizeable amount of dexterity and concentration to be successful in a network of like-minded profit seekers. Still, there is an underlying beauty to the process, as thousands (perhaps millions) of individuals coordinate their knowledge on the allocation of limited resources throughout the world.
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Wednesday, October 26, 2011
14 Critical Lessons Every Trader Should Know / InvestorEducation / Learn to Trade
Dear Trader,
You know how difficult it can be to successfully trade the markets. The volatility we've seen lately does offer great opportunities, but it can also derail even the most experienced trader. That's why our friends at Elliott Wave International are releasing one of their most popular trading eBooks -- The Best of Trader's Classroom -- free through November 7.
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Sunday, October 16, 2011
Is Fine Art A Safe Haven? / InvestorEducation / Investing 2011
Pablo Picasso is supposed to have once said, "I'm a joker who has understood his epoch and has extracted all he possibly could from the stupidity, greed and vanity of his contemporaries!" With:
1. The US being downgraded;
2. The Eurozone crisis escalating;
3. The Arab Spring turning into a winter of discontent;
4. The Swiss franc losing its sheen post devaluation; and
5. Fears that gold is looking distinctly frothy;
Friday, October 07, 2011
Understanding Fibonacci, Learn to Apply Ratios to Calculate Stock Price Targets / InvestorEducation / Learn to Trade
The Fibonacci ratio can be an invaluable tool for calculating price retracements and projections in your analysis and trading. This excerpt from The Best Technical Indicators for Successful Trading explains the origins of the Fibonacci sequence and how you can apply it to the markets.
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Monday, October 03, 2011
Markets Whipsaw, 2008 Financial Crisis Causes and Consequences / InvestorEducation / Learn to Trade
What Does Whipsaw Mean?
Simply stated, a whipsaw market condition is present when a security's price heads in one direction then reverses sharply and abruptly in the opposite direction.
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Friday, September 30, 2011
How To Tell When A Stock May Have Topped / InvestorEducation / Learn to Trade
Look at CRM when it TOPPED.
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Monday, September 12, 2011
Momentum Trading Technical Analysis Using MACD / InvestorEducation / Technical Analysis
Learn more about using Momentum analysis to make Elliott wave trading decisions in this video by EWI European Interest Rate Analyst Bill Fox. Find more lessons on technical indicators in EWI's newest free report. See the information below.
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Friday, September 09, 2011
Learn the Best Technical Indicators For Successful Trading / InvestorEducation / Learn to Trade
Successful trading doesn't happen by accident. And it doesn't happen by watching news headlines and reading company earnings reports. When the markets get volatile and the fundamentals don't seem to work, it's time to turn to technical analysis.
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Wednesday, September 07, 2011
Don't Become Wall Street's Next Victim / InvestorEducation / Derivatives
Martin Hutchinson writes: It recently came out that a $1.2 billion derivatives portfolio that Goldman Sachs Group Inc. (NYSE: GS) managed for the Libyan government lost 98.5% of its value between 2004 and June 2010.
If a firm like Goldman will sit idly by while a client eats about $1 billion on a single investment, where do you think you and your portfolio land on Wall Street's list of priorities?
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Sunday, September 04, 2011
Money: How to Get It and Keep It / InvestorEducation / Learning to Invest
Doug Casey, Casey Research writes: Even if you are already wealthy, some thought on this topic is worthwhile. What would you do if some act of God or of government, a catastrophic lawsuit or a really serious misjudgment took you back to Square One? One thing about a real depression is that everybody loses. As Richard Russell has quipped, the winners are those who lose the least. And as far as I’m concerned, the Greater Depression is looming, not just another cyclical downturn. You may find that, although you’re far ahead of your neighbors (you own precious metals, you’ve diversified internationally and you don’t believe much of what you hear from official sources), you’re still not as prepared as you’d like.
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Friday, August 12, 2011
Are You Using These Circuit Breakers in Your Trading? / InvestorEducation / Learn to Trade
One of the things I often hear is that when traders get bored, they overtrade.
Another scenario is that when a trade goes against them, they take it personally and want to make all of it up on the next trade.
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Thursday, August 11, 2011
Why do you buy put options and how do you calculate your profit? / InvestorEducation / Options & Warrants
Susan Hayes writes: A put option is the right, but not the obligation, to sell a stock. It is, in essence, an insurance policy on a financial market security.
There are two reasons why an individual or institution might buy a put option;
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Friday, July 15, 2011
When To Buy A Stock That’s Been Correcting / InvestorEducation / Learning to Invest
At some point, a stock that’s been on a big run, will turn tail and go into a correction. Such behavior is normal, it allows investors to take profits and buy again or add to their current position at lower prices.
But often the initial selling can be intense and scary, making it difficult to navigate the ideal time to buy the stock as no one likes catching a falling knife. For those who understand chart pattern recognition, the ideal time to buy eventually becomes clear. SLV below offers a good example:
Wednesday, July 13, 2011
Learn How to Trade the Gold GDX Fibonacci Butterfly Options Spread / InvestorEducation / Options & Warrants
One of the many useful characteristics of options is that the astute trader can design strategies to capture profit from predicted price action forecasts from a wide variety of technical indicators. I think it is helpful to have knowledge of several approaches to technical analysis in order to recognize patterns that other traders may not see.
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