Documentation Center

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Educational articles and publications on trading and position sizing. Improve your trading and risk management skills.

Methodologies

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What is Fundamental Analysis?

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

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What is Technical Analysis?

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.

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Fundamental and technical analysis : A brief summary

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.

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What is Swing Trading?

Swing Trading is primarily based on technical analysis where positions are held for the short to medium term, from several days to weeks.

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What is Position Trading?

Position traders are long-term investors. They are not concerned with the daily price fluctuations on the intraday chart.

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What is Day Trading?

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.

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The Buy-and-Hold Strategy

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.

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The Mean Reversion Strategy

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

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The Breakout Strategy

Breakout trading is a strategy by which a position is taken as soon as a certain price level is broken.

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What is Growth Investing?

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

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What is Dividend Investing?

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

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What is Value Investing?

Simply put, the value investor specifically looks for companies whose market value (stock price) is lower than their current intrinsic value.

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The Retracement or Pullback Strategy

A retracement strategy involves looking for stocks in a long-term rising trend whose price is experiencing a temporary dip.

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Trend Following Trading Strategy Guide

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.

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What is Quality Investing?

Quality investors focus on companies with an excellent track record of sales and earnings growth and where profit margins remain stable.

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The importance of Volume in trading and investing

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.

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Analyzing sectors and industries in the stock market (Sector Rotation)

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.

Money and Risk Management

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01 Start Taking Control over Your Investing and Trading, Now

The number 1 trading rule: cut your losses and let your profits run

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02 Size does Matter (in the Stock Market)!

Learn why size is one of the most important variables when trading.

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03 On What We Invest and What We Risk

What you risk is not the same as what you invest

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04 Bet The Farm

Be aware of diversification

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05 A Take On Tesla

Tesla as an example trade

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06 How To Spot Good Investment Advice

Learn how to recognize winners and losers

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Reduce loss, maximize profits

Using the stop loss indicators in ChartMill

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General Trading Tips & FAQ

Some general pointers on trading, setups, position sizing and money management.

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What is Short Selling

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.

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Which Order to Use when Buying Shares?

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

Publications

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TRADERS - Chartmill (fka Monest) Channels

An in depth reading on ChartMill Channels

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TRADERS - Value in Time (book review)

A review of Value In Time by Pascal Willain

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TRADERS - Chartmill website review

A review of the initial version of the www,chartmill.com website

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TRADERS - Be(a)ware of diversification (part 1)

Is diversification the holy grail? Maybe not.

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TRADERS - Chartmill Bull and Bear Indicator (Part 3)

An in depth discussion on the ChartMill Bull and Bear Indicators.

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TRADERS - Chartmill Bull and Bear Indicator (Part 2)

An in depth discussion on the ChartMill Bull and Bear Indicators.

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TRADERS – Chartmill Bull and Bear Indicator (Part 1)

n in depth discussion on the ChartMill Bull and Bear Indicators.

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TRADERS – Be(a)ware of diversification (part 2)

Is diversification the holy grail? Maybe not (part 2)

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TRADERS - Tsunami Setups

Tsunami Setups or Squeeze Play Setups can lead to great breakouts

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TRADERS - Flat Liners Breaking Out

Weinstein’s phase model superposed with a quantified system dynamics model

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TRADERS - Sizing Positions - Part 1

Position Sizing is the single most important aspect in trading and is what will make you profitable or not.

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TRADERS - Sizing Positions - Part 2

Position Sizing is the single most important aspect in trading and is what will make you profitable or not.

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TRADERS - Sizing Positions - Part 3

Position Sizing is the single most important aspect in trading and is what will make you profitable or not.

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TRADERS - Equity Curve Control - Part 1

Learn how to evaluate and control your performance.

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TRADERS - Equity Curve Control - Part 2

Learn how to evaluate and control your performance. (part 2)

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TRADERS - Equity Curve Control - Part 3

Learn how to evaluate and control your performance. (part 3)

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TRADERS - Equity Curve Control - Part 4

Learn how to evaluate and control your performance. (part 4)

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TRADERS - Less is More (part 02)

More return with less risk (part 2)

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TRADERS - Less is more (part 01)

More return with less risk

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TRADERS - Portfolio metrics

On risk management and position sizing

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TRADERS - Market Dynamics (part 1)

Physics laws on the stocks market

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TRADERS – Market Dynamics (part 2)

Physics laws on the stocks market (part 2)

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TRADERS - Effective Volume: A Better Accumulation and Distribution Measure

A more in depth description of the Effective Volume indicator which measures accumulation and distribution by large players

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TRADERS – The ChartMill Value Indicator

An in depth treatment of the ChartMill Value Indicator.

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Stocks & Commodities - various publications

An overview of articles published in Stocks & Commodities Magazine