Educational articles and publications on trading and position sizing. Improve your trading and risk management skills.
Fundamental analysis is a method of determining the intrinsic value of an asset and analyzing the quantitative and qualitative elements that may influence its future price. For this purpose, the companies' financial statements and various financial ratios
Technical Analysis assumes that all information that can influence the value of a company is already incorporated into the stock price. Price trends, price patterns and support and resistance levels are then used to predict the future price.
Fundamental and technical analysis are both methods used to analyze companies with the intention of deciding what and/or when something is considered a good idea to buy or not.
Swing trading is an active trading strategy where positions are held for one to several days or weeks. The trader tries to anticipate, and profit from, a future price trend. It is used by traders in various financial markets, including stocks, forex, and commodities.
Position traders are long-term investors. They are not concerned with the daily price fluctuations on the intraday chart.
Daytrading or Intraday trading is - as the name implies - the buying and selling of a financial product within one trading day. This is in contrast to Swing Trading and Position Trading where positions are held longer than one day.
Unlike daytrading and swing trading, this strategy is entirely focused on the long term. The basic principle is that shares are bought with the intention of holding them for years.
The mean reversion strategy is based on the assumption that extremely high and low prices which have been established in a relatively short time have deviated too much from the mean price so that there is a high probability that there will be a fall back
Explore the fundamentals of breakout trading in this informative article. Understand what breakout trading is, how to spot potential breakouts, and the key factors that make this strategy popular among traders.
Stocks that are expected to grow significantly faster than their sector peers and the overall market average are considered growth stocks. Investors who invest in growth stocks do so specifically because they expect the price of the stock to rise exponent
Dividend investing offers recurring income coming from dividend payments and in addition there is the potential capital appreciation from the stock. Dividend payments can be paid out as income or you can choose to reinvest these dividend payments to furth
Simply put, the value investor specifically looks for companies whose market value (stock price) is lower than their current intrinsic value.
A retracement strategy involves looking for stocks in a long-term rising trend whose price is experiencing a temporary dip.
In this strategy guide we will discuss in detail all the key concepts that are important if you want to start with a trend following trading strategy.
Quality investors focus on companies with an excellent track record of sales and earnings growth and where profit margins remain stable.
In this article we will deal with the concept of 'volume' in trading and investing and the way this indicator can give important indications when making buying or selling decisions.
The concept of sector rotation in a full economic cycle is nothing new, but still too few investors use it. However, analyzing sectors and industries is a great way to become more consistent in your trading results.
The opening range is formed between the highest and lowest price, immediately at market opening, up to a maximum of one hour after the opening. The opening range breakout strategy involves entering a long or short position as soon as the price breaks the initial opening range up or down.
Day and swing trading based on technical analysis are both strategies that start from pure price action movements. In this article, we will cover some basic trading ideas in ChartMill that will get you started with day and swing trading strategies.
The basis of growth stocks is rising and accelerating sales and earnings. In this article, we will cover some basic trading ideas in ChartMill that will get you started for swing and position trading in growth stocks.
Long-term investing is a strategy that involves holding onto investments for an extended period, typically more than a year. This approach allows investors to capitalize on the power of compounding and navigate through market volatility. In this article, we will cover some basic trading ideas in ChartMill that will get you started with long term investing strategies.
Discover how economic cycles impact investing and trading, with strategies for each phase: expansion, peak, contraction, and trough.
Sector-based Allocation is an effective strategy for achieving diversification within your portfolio by allowing you to identify and invest in stocks across various sectors of the economy.
Below are 3 examples of diversified sector portfolios to balance desired risk and return.
When the market takes a hit, fear and uncertainty dominate the headlines. Many traders rush to the sidelines, worried about further losses. But smart investors know that stock market corrections aren’t a time to panic - they’re a time to prepare.
A competitive moat refers to a company’s sustainable competitive advantage, something that protects it from competitors and allows it to maintain market dominance, pricing power, and profitability over time.
Understanding the sweet spot where moderate growth meets low inflation.
Prepare for Quadruple Witching. Discover how index arbitrage and volatility impact the market. Get key dates and expert trading strategies for ChartMill users.
Stop relying on the 10-K for future predictions. Discover how to use 8-Ks and transcripts to find management guidance and track company reliability.
Master market breadth to gauge the stock market’s true health. Learn how we use our Breadth Trend Rating and daily US market news to stay ahead of the trend.
The number 1 trading rule: cut your losses and let your profits run
Learn why size is one of the most important variables when trading.
What you risk is not the same as what you invest
Be aware of diversification
Tesla as an example trade
Learn how to recognize winners and losers
Using the stop loss indicators in ChartMill
Some general pointers on trading, setups, position sizing and money management.
Short Selling is selling shares you don't own with the intend to buy them back at a lower price to make profit from a decline.
A "stoploss order" will ring a bell with most investors, the majority will answer that such orders are used to limit the loss on a position or to protect accumulated profits. Correct. But do you also know the Sell Stop or Buy Stop order? This is a much
A trailing stop loss is used to protect profits. This stop evolves with the price if it moves in the desired direction. As a result, a larger portion of the accumulated profit is being protected. The stop can only rise, never fall.
In this article, we highlight some decent swing trading risk management practices to minimize your risk, so that your trading capital enjoys maximum protection.
Progressive exposure is a dynamic risk management technique that allows you to take full advantage when market conditions are optimal.
An in depth reading on ChartMill Channels
A review of Value In Time by Pascal Willain
A review of the initial version of the www,chartmill.com website
Is diversification the holy grail? Maybe not.
An in depth discussion on the ChartMill Bull and Bear Indicators.
An in depth discussion on the ChartMill Bull and Bear Indicators.
n in depth discussion on the ChartMill Bull and Bear Indicators.
Is diversification the holy grail? Maybe not (part 2)
Tsunami Setups or Squeeze Play Setups can lead to great breakouts
Weinstein’s phase model superposed with a quantified system dynamics model
Position Sizing is the single most important aspect in trading and is what will make you profitable or not.
Position Sizing is the single most important aspect in trading and is what will make you profitable or not.
Position Sizing is the single most important aspect in trading and is what will make you profitable or not.
Learn how to evaluate and control your performance.
Learn how to evaluate and control your performance. (part 2)
Learn how to evaluate and control your performance. (part 3)
Learn how to evaluate and control your performance. (part 4)
More return with less risk (part 2)
More return with less risk
On risk management and position sizing
Physics laws on the stocks market
Physics laws on the stocks market (part 2)
A more in depth description of the Effective Volume indicator which measures accumulation and distribution by large players
An in depth treatment of the ChartMill Value Indicator.
An overview of articles published in Stocks & Commodities Magazine