Education Archive
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The Debt Ceiling – 25 Millions Away
I have been reading about international debt and the PIIGS (Portugal, Ireland, Italy, Greece and Spain) ever since I took a derivatives seminar. However, the United States is very close to the precipice because of their excessive borrowing and the increase in the nation’s debt. See, there is a fight in Congress about whether the [...] -
Where Are the Customer’s Yachts?
Where are the customer’s yachts is a great book to read. It criticizes investment gurus and brokers and defines the stock market as a casino where the only winners are the stock brokers. One of the classic stories in this book is about what would happen if 4000 people started flipping coins against each other [...] -
Options Maximum Pain
Maximum Pain is one of those theories out there that can be characterized as unproven, anecdotal, sometimes true & awe/fear/anger-inspiring. It’s essentially a big middle finger to the option-buying public from the Market Makers/assumed option sellers/hedgers. The theory mostly comes from the general assumption/old-wives’-tale that [make up a percentage, say 80%] of all options expire [...] -
Free Access to Investors.com
We are not getting paid for this endorsement, however, we are advocates of quality information and Investors.com just delivers. Point your browsers to http://www.investors.com for free access to their premium tools. Just today we were using their magnificent stocks under 10 dollars screen to gather new ideas. An old friend (Krispy Kreme) is popping on [...] -
50% Retracement in the Stock Market Indexes is Possible
There is synergy in all the indexes. As shown in the following charts, there seems to be agreement between the 50% retracement line and areas of support. We guess that is where we are headed. A month ago we saw problems but we were way too early to go short. The indexes broke the ascending [...] -
Window Dressing AKA Putting Lipstick on a Pig
A brief discussion about window dressing. -
Want to Trade Without Stops? (Part Deux)
Treehouse was recommended as a long buy on this blog on June 29, 2010. A parabolic stop took us out of the trade, made a bit of money and put it someplace else. We did not think too much of it until two days ago when the market gapped THS down hard. Lessons learned: 1. [...] -
Stock Market Trade Entry Optimization.
A lot has been written about how and when to enter a trade. However, in all the books we have read about the stock market we never encountered a discussion about how to buy stocks to get a fair price after your system generates a buy signal for the next morning. Do you chase stocks [...] -
Covered Call Tutorial
According to investopedia a covered call is an options strategy where an investor holds a long position in a stock or ETF and writes (sells) call options on that same asset in an attempt to generate increased income from the asset. This is often employed when an investor has a short-term neutral view on the [...] -
Top Free Stock Market Magazines
We love education and we are subscribed to multiple free stock market related magazines. They are full of interesting articles and stock trading methods. You should exploit these free resources for interesting ideas in the areas of technical analysis, futures/commodities, options, bonds, etfs, and equities. 1. Futures Magazine. This magazine has quickly become our favorite [...]