Do You Know What’s In the QQQ’s?

The QQQ has a reputation as an index of Nasdaq stocks, however, this isn’t exactly true. It is a cap-weighted index, which means it acts like AAPL.

Long Term vs. Short Term Trading — Avoiding the Pitfalls

Should you use short term-style stops and position sizing in longer term trades and vice versa? We help traders understand this conundrum by understanding how to use consistent and proportional position sizing.

The Truth About Penny Stocks

Penny stocks aren’t just about investment newsletters and pump-and-dump schemes. Sometimes they are very attractive investments. Find out how to tell the difference in this video.

Candlesticks: Buying Hammers

The candlestick pattern we will be evaluating in this article is a “hammer.” Hammers are bullish reversal or continuation signals. When they follow a downtrend or a downside correction within a larger uptrend it is wise to pay attention.

Candlesticks: Using Dojis

Dojis are usually considered trend neutral when viewed all by themselves but they do indicate trader indecision and a lack of momentum. That means that the market context within which the doji appears is very important.

Trading a Dead Cat Bounce

Extremely volatile markets create an environment for the formation of a very specific type of technical price pattern. The “Dead Cat Bounce” pattern (DCB) may have a macabre name but it comes with very nice profit potential and is relatively easy to identify. At its heart the DCB is a great study in investor psychology. … Continued

Invest Exactly Like Warren Buffett (Really)

It doesn’t take a book or a series of videos to show you how to invest exactly like Warren Buffett. In fact, I can show you how to do it in 60 seconds or less for free.

What is a Fund of Funds?

There is a relatively unknown subsection of the investment marketing industry called Funds of Funds (FOF). Recently these collective investment schemes have had some light shown on them as the Madoff scandal continues to disrupt the financial markets. Many of Madoff’s investors were actually FoFs. In this article I will explain what FoFs are and … Continued

How Much Should You Risk in the Options Market?

What you really have at risk in a specific trade is often a function of whether you are long or short, and how quickly you think you can get out of a bad trade. For example, a long option has a fixed risk of the premium or purchase price. However, a short option has theoretically … Continued

How Stock Buybacks Benefit Investors

A buyback benefits shareholders by increasing the percentage of ownership held by each investor by reducing the total number of outstanding shares. We talk about how to identify buyback programs and discuss strategies for investors to take advantage of stock buyback opportunities.