Dear Traders, First and foremost, my thoughts and prayers are with those who have been affected by Ian. Ian, now once again a hurricane, is threatening to carve a new path of destruction through South Carolina on Friday when it roars ashore north of Charleston.After a big sell-off day, the market has stabilized today. CCL and NKE were the biggest losers of the day, both dropping significantly on disappointing earnings. You know the situation is bad...

Dear Traders, President Ronald Reagan once said that the “nine most terrifying words in the English language are: I’m from the Government, and I’m here to help.” I do not think any investors these days are really in agreement with that sentiment. Financial markets are blowing up everywhere in the world, and governments are stepping in to support them. Japan has stepped into the markets to save the collapsing yen, and Europeans are scrambling to control...

An electronic online trading platform is a computer software program that is used to place orders for day trading. A trading platform is different from direct-access brokers themselves, but I often see traders confusing these two as one.  The trading platform sends and places your order at the Exchange so the direct-access brokers can clear the order for you. Usually, direct-access brokers offer their own proprietary trading platforms to their clients. The quality, charting capability, speed...

Dear Traders, Happy Tuesday! I am back from my week-long week trip to the UK, where I spent a few nights in the hospital for surgery. I could not trade at all over the last 8 days, but I was honored to witness the Windsor part of Queen Elizabeth’s funeral. I also happened to be in London when the British pound was destroyed by the USD. On Friday, the GBP lost 4% of its value. That...

Mountains fascinate me. I spent much of my youth in the mountains, and I still thoroughly enjoy being able to explore the higher altitudes of our world. I began alpine climbing in college, and later I developed a passion for the financial markets. When I am asked by new traders and aspiring traders how they can become successful in the stock markets, it is perhaps not surprising that my responses usually compare trading to climbing....

As an individual trader or investor, you cannot trade directly on a Stock Exchange. For that, you will need a “broker” or “brokerage account.” A broker is simply an intermediary that gives people access to a Stock Exchange.  For day trading, you need a good direct-access broker. In fact, you don’t need just a good broker; you need an awesome broker. Your broker is your vehicle to trade. If you have a bad broker, you lose...

Trade the Best, Leave the RestAs part of the algorithmic trading by computer systems, the majority of stocks will trend with the overall market unless they have a reason not to. So, if the market is moving up, the majority of stocks will be moving up. If the overall market is going down, the prices of the majority of stocks will also go down. But there will inevitably be a handful of stocks that will...

What Are Candlesticks? Candlesticks are a very common way to chart the price of stocks.  They allow you to see the opening price, the highest price in a given time period, the lowest price in that time period, and the closing price value for each time period you wish to display. Although some people prefer using other methods of charting, I like candlesticks because they are an easy-to-decipher picture of the price action.  You can easily...

Dear Traders,The markets were destroyed yesterday, with the technology sector QQQ down over 6%. More aggressive hikes are on the way, and central banks all around the world (with the exception of China and Japan’s) will continue to raise interest rates. Today, the market found some stability, and I made one great trade on TSLA. You can watch the recap that Brian and I posted here. Ardi and I have opened many cash secured puts on...

Dear Traders,Happy inflation number day! Inflation did not ease as expected in August 2022, with an 8.3% rise showing that the squeeze on consumers remains persistent even when gas prices fell. The market is falling apart as I am writing this newsletter, with the tech sector’s QQQ dropping over 4% and SPY over 3%. The Federal Reserve will be even more hawkish hunting down investors and consumers. These days are scary times.Although Wall Street is...