1. It rise on strong volume while dow is down over 200.
2. Rsi, Macd, and stochastic are all up.
3. holding 1-5 days.
Stock Market Analysis - Learn to trade stocks online
Thursday, January 29, 2009
My stock pick for tomorrow (1/30/09) ARTG
1. It rise on strong volume while dow is down over 200.
2. Rsi, Macd, and stochastic are all up.
3. holding 1-5 days.
Wednesday, January 28, 2009
Stock Pick for tomorrow (1/29/09) - SOHU
Sorry guys, I went on vacation this month. The site will be back to normal. Stocks I bought this month were EEV (+10%), EOG (+5%), FLO (+1%), all holding 3-5 days. One of the best stock that I missed was IDCC (+18.5%) that I had on my watch list on 1/20 which I was thinking to buy on the 21th. What hold me back was it was hitting resistance at $28 and reach 52 week high. So I thought I would see how the stock goes before jump in the open since the stock wasn't volatile anyway. (usually it trades in the range of -3% and +3%. However, on 21th, that stock keep rising up to 10% that day and I missed my entry.My stock pick for tomorrow is SOHU.
Holding time 1-5 days.
1. Candlestick is bullish
2. Macd is pointing up from below 0.
3. Stochastic is up
4. Volume is above average
5. Rsi is pointing up to the 50's.
Monday, January 5, 2009
List of Stochastic Divergent stocks for 1/5/2009
List of Stochastic Divergent stocks for 1/5/2009
| Chart | Stock Symbol | Open | High | Low | Close | Trading Volume | % Change |
| View Chart | YSI | 4.35 | 4.38 | 4.09 | 4.22 | 562789 | -4.95% |
| View Chart | WMI | 33.70 | 33.98 | 33.38 | 33.57 | 2800000 | -0.59% |
| View Chart | VRTX | 30.63 | 32.27 | 30.24 | 32.15 | 2310000 | 4.76% |
| View Chart | TSO | 13.62 | 14.64 | 13.42 | 14.37 | 11320000 | 4.21% |
| View Chart | TIVO | 7.25 | 7.34 | 7.11 | 7.26 | 862870 | 0.41% |
| View Chart | STEM | 1.47 | 1.58 | 1.40 | 1.50 | 3050000 | 4.90% |
| View Chart | SPW | 43.08 | 44.93 | 42.31 | 43.96 | 1220000 | 1.15% |
| View Chart | SPIL | 4.77 | 4.85 | 4.62 | 4.78 | 1680000 | 1.70% |
| View Chart | SNDA | 33.41 | 33.85 | 32.50 | 33.47 | 738325 | 0.09% |
| View Chart | SEIC | 15.92 | 15.93 | 15.44 | 15.65 | 977246 | -2.67% |
| View Chart | SCSS | 0.25 | 0.29 | 0.25 | 0.26 | 526799 | 0.00% |
| View Chart | SBH | 5.55 | 5.73 | 5.36 | 5.72 | 565246 | 0.70% |
| View Chart | ROK | 33.90 | 34.45 | 33.09 | 34.06 | 892514 | -0.03% |
| View Chart | RHT | 13.97 | 14.30 | 13.72 | 14.14 | 1710000 | 1.07% |
| View Chart | QI | 0.46 | 0.56 | 0.38 | 0.47 | 6850000 | 23.68% |
| View Chart | PWR | 20.87 | 21.99 | 20.51 | 21.32 | 4430000 | 1.91% |
| View Chart | PWE | 12.36 | 13.15 | 12.04 | 12.91 | 4140000 | 7.23% |
| View Chart | PSS | 11.95 | 12.20 | 11.81 | 12.08 | 743431 | -1.87% |
| View Chart | PLD | 14.15 | 14.58 | 13.57 | 14.21 | 16880000 | 0.28% |
| View Chart | PLCE | 22.27 | 22.42 | 21.22 | 21.37 | 384523 | -5.19% |
| View Chart | PL | 14.45 | 14.94 | 13.71 | 14.84 | 750962 | 1.78% |
| View Chart | PG | 62.32 | 62.80 | 61.59 | 62.35 | 14100000 | -0.72% |
| View Chart | PCZ | 24.49 | 26.25 | 23.81 | 25.37 | 3600000 | 6.55% |
| View Chart | PAY | 5.10 | 5.39 | 5.09 | 5.29 | 964438 | -0.19% |
| View Chart | PALM | 3.18 | 3.25 | 3.14 | 3.25 | 2640000 | 4.17% |
| View Chart | OXY | 61.94 | 63.97 | 60.88 | 61.74 | 9780000 | -0.68% |
| View Chart | OKE | 30.40 | 30.91 | 30.32 | 30.79 | 774108 | 0.62% |
| View Chart | NT | 0.29 | 0.30 | 0.28 | 0.29 | 6300000 | 0.00% |
| View Chart | NRF | 4.23 | 4.44 | 4.17 | 4.45 | 489594 | 6.71% |
| View Chart | NAT | 34.53 | 37.17 | 34.39 | 36.85 | 1620000 | 7.15% |
| View Chart | MTZ | 11.63 | 11.85 | 11.30 | 11.75 | 864112 | -0.34% |
| View Chart | MTW | 9.48 | 10.05 | 9.22 | 9.84 | 3830000 | 3.69% |
| View Chart | MOV | 9.76 | 10.04 | 9.60 | 9.95 | 265561 | 2.26% |
| View Chart | MMM | 58.79 | 59.19 | 58.11 | 58.50 | 3690000 | -1.17% |
| View Chart | MI | 13.60 | 13.78 | 12.88 | 12.99 | 3140000 | -5.73% |
| View Chart | MEDX | 5.46 | 5.47 | 5.25 | 5.39 | 1340000 | -1.46% |
| View Chart | AFFX | 3.18 | 3.19 | 2.91 | 3.16 | 694359 | 1.28% |
| View Chart | AG | 25.73 | 27.68 | 25.39 | 26.60 | 2220000 | 2.35% |
| View Chart | LAMR | 14.46 | 14.99 | 13.44 | 14.75 | 1360000 | 4.91% |
| View Chart | APA | 78.90 | 85.32 | 78.63 | 83.05 | 7110000 | 4.78% |
| View Chart | IDCC | 27.79 | 28.16 | 27.52 | 28.11 | 651709 | 1.15% |
| View Chart | ATW | 17.55 | 19.18 | 17.17 | 18.47 | 1980000 | 5.42% |
| View Chart | HLF | 21.42 | 22.51 | 21.03 | 22.40 | 736593 | 2.99% |
| View Chart | GLBL | 3.92 | 3.92 | 3.63 | 3.81 | 1510000 | -1.80% |
| View Chart | CC | 0.14 | 0.15 | 0.14 | 0.15 | 643995 | 7.14% |
| View Chart | FIG | 1.41 | 2.39 | 1.27 | 1.90 | 10660000 | 49.61% |
| View Chart | COL | 40.49 | 41.45 | 40.20 | 41.09 | 807849 | 0.71% |
| View Chart | ENTG | 2.29 | 2.30 | 2.08 | 2.08 | 737569 | -9.57% |
| View Chart | CSIQ | 6.67 | 7.49 | 6.55 | 7.04 | 2070000 | 8.47% |
| View Chart | DSX | 14.29 | 14.82 | 13.91 | 14.32 | 2300000 | 2.87% |
List of Macd Histogram Divergent stocks for 1/5/2009
List of Macd Histogram Divergent stocks for 1/5/2009
| Chart | Stock Symbol | Open | High | Low | Close | Trading Volume | % Change |
| View Chart | UPL | 36.27 | 39.00 | 36.19 | 38.14 | 2090000 | 2.78% |
| View Chart | TM | 65.68 | 66.57 | 65.28 | 65.62 | 861239 | -1.40% |
| View Chart | SRS | 54.20 | 56.24 | 52.33 | 55.26 | 17310000 | 6.07% |
| View Chart | SKF | 103.20 | 107.03 | 101.56 | 105.84 | 19080000 | 3.48% |
| View Chart | PNC | 48.10 | 49.22 | 47.27 | 48.10 | 4940000 | -1.01% |
| View Chart | MSCC | 12.82 | 13.56 | 12.67 | 13.48 | 1270000 | 4.66% |
| View Chart | MON | 73.44 | 75.62 | 72.33 | 74.38 | 6790000 | 0.90% |
| View Chart | AMED | 40.72 | 41.18 | 40.05 | 40.33 | 596801 | -0.96% |
| View Chart | ATN | 13.85 | 15.65 | 13.80 | 15.02 | 584494 | 8.06% |
| View Chart | HSIC | 37.76 | 38.33 | 36.90 | 38.00 | 1020000 | 0.03% |
| View Chart | HE | 22.32 | 22.37 | 22.00 | 22.36 | 611445 | 0.22% |
| View Chart | FXP | 30.41 | 30.72 | 29.14 | 30.09 | 1980000 | -2.21% |
| View Chart | CLR | 22.52 | 25.30 | 22.26 | 24.57 | 1530000 | 9.10% |
| View Chart | DZZ | 26.51 | 26.73 | 25.07 | 26.04 | 551973 | 4.12% |
| View Chart | DXD | 50.85 | 51.84 | 50.21 | 51.00 | 8210000 | 0.83% |
List of Macd Divergent stocks for 1/5/2009
List of Macd Divergent stocks for 1/5/2009
| Chart | Stock Symbol | Open | High | Low | Close | Trading Volume | % Change |
| View Chart | VIP | 8.33 | 8.90 | 7.87 | 8.81 | 7580000 | 7.70% |
| View Chart | USO | 35.76 | 37.83 | 35.51 | 37.34 | 34600000 | 4.80% |
| View Chart | UPL | 36.27 | 39.00 | 36.19 | 38.14 | 2090000 | 2.78% |
| View Chart | SLB | 45.12 | 48.99 | 44.81 | 46.82 | 13360000 | 2.00% |
| View Chart | SINA | 24.33 | 24.81 | 23.81 | 24.68 | 1110000 | 1.73% |
| View Chart | PWRD | 18.32 | 18.32 | 17.58 | 17.96 | 400711 | -2.18% |
| View Chart | PNC | 48.10 | 49.22 | 47.27 | 48.10 | 4940000 | -1.01% |
| View Chart | NCT | 0.82 | 0.82 | 0.69 | 0.69 | 798989 | -12.66% |
| View Chart | MON | 73.44 | 75.62 | 72.33 | 74.38 | 6790000 | 0.90% |
| View Chart | MBI | 4.42 | 5.10 | 4.33 | 4.85 | 8670000 | 7.78% |
| View Chart | LF | 3.53 | 3.55 | 3.31 | 3.52 | 473828 | 0.00% |
| View Chart | KSU | 20.30 | 22.07 | 20.00 | 21.49 | 1950000 | 5.39% |
| View Chart | HTV | 6.36 | 6.52 | 6.10 | 6.26 | 141363 | -3.69% |
| View Chart | ATW | 17.55 | 19.18 | 17.17 | 18.47 | 1980000 | 5.42% |
| View Chart | HOV | 1.61 | 1.99 | 1.61 | 1.88 | 4350000 | 15.34% |
| View Chart | HOS | 17.63 | 19.56 | 17.37 | 18.68 | 601088 | 6.86% |
| View Chart | BKS | 16.12 | 17.78 | 15.32 | 17.38 | 1700000 | 13.45% |
| View Chart | HBC | 48.72 | 50.00 | 48.46 | 49.51 | 1230000 | -0.12% |
| View Chart | BMO | 26.78 | 27.95 | 26.20 | 27.49 | 588120 | 3.78% |
| View Chart | GU | 1.96 | 2.41 | 1.90 | 2.29 | 1880000 | 20.53% |
| View Chart | BRY | 7.96 | 8.59 | 7.75 | 8.27 | 977402 | 1.97% |
| View Chart | BZH | 1.52 | 1.65 | 1.43 | 1.56 | 1170000 | 2.63% |
| View Chart | FXP | 30.41 | 30.72 | 29.14 | 30.09 | 1980000 | -2.21% |
| View Chart | FTI | 25.30 | 27.17 | 25.06 | 26.45 | 1080000 | 4.46% |
| View Chart | FBN | 2.27 | 2.30 | 2.06 | 2.28 | 596468 | 1.79% |
| View Chart | ESRX | 56.68 | 57.15 | 55.55 | 57.12 | 1890000 | 0.76% |
| View Chart | COF | 32.39 | 33.75 | 32.01 | 33.04 | 6620000 | -0.81% |
| View Chart | CRDN | 21.12 | 22.00 | 20.85 | 21.70 | 391199 | 3.19% |
| View Chart | EL | 32.01 | 32.65 | 30.67 | 31.08 | 2090000 | -4.75% |
| View Chart | EK | 6.92 | 7.18 | 6.80 | 7.10 | 3890000 | 3.35% |
| View Chart | CTRP | 23.55 | 24.80 | 22.96 | 24.38 | 638707 | 3.13% |
| View Chart | DPTR | 5.24 | 5.49 | 5.05 | 5.23 | 1430000 | -0.19% |
Sunday, January 4, 2009
5 steps to build a trading system (Part I)
1. Study the daily bullish patterns base on candlestick, macd, stochastic, Average Directional Index (ADX), moving average, or any other any technical indicators you like.
2. Analyze their charts and see if they are common patterns they share as the base point for your system.
3. Backtest this pattern and try to break it. For example, if the patterns you found is the stock rises on stochastic crossover 30, macd crossover, and bullish engulfing with candlestick. You will test it not only with historical data but also paper trade the pattern using live data. Whenever the system fail, try to find out why it failed and add this new condition to your system and again start to backtest this new system with both historical data and paper trade the system.
4. Until I am confident that the system works with a good win-loss ratio (You need an at least 3:1 percentage win-loss ratio to use the system), I will start trading base on my new system.
5. There is no one single system that will work forever under every market environment. So if your system starts to failed on 3 consecutive losses, Stop using it for a while. This does not mean you will throw away your system completely, you will keep it on file and start use it again when the market environment changes and the system start to work again.
6. Keep repeating steps 1-5 to develop new trading systems that work for you.
2. Analyze their charts and see if they are common patterns they share as the base point for your system.
3. Backtest this pattern and try to break it. For example, if the patterns you found is the stock rises on stochastic crossover 30, macd crossover, and bullish engulfing with candlestick. You will test it not only with historical data but also paper trade the pattern using live data. Whenever the system fail, try to find out why it failed and add this new condition to your system and again start to backtest this new system with both historical data and paper trade the system.
4. Until I am confident that the system works with a good win-loss ratio (You need an at least 3:1 percentage win-loss ratio to use the system), I will start trading base on my new system.
5. There is no one single system that will work forever under every market environment. So if your system starts to failed on 3 consecutive losses, Stop using it for a while. This does not mean you will throw away your system completely, you will keep it on file and start use it again when the market environment changes and the system start to work again.
6. Keep repeating steps 1-5 to develop new trading systems that work for you.
Both Stochastic and Macd crossover and rsi is between 30 and 60. 1/2/2009
| Chart | Stock Symbol | Open | High | Low | Close | Trading Volume | % Change |
| View Chart | ADLR | 1.67 | 1.76 | 1.61 | 1.73 | 123846 | 4.22% |
| View Chart | ATPG | 5.94 | 6.31 | 5.84 | 6.24 | 752458 | 6.67% |
| View Chart | FWLT | 23.50 | 25.48 | 23.20 | 25.22 | 3580000 | 7.87% |
| View Chart | JOSB | 26.89 | 28.88 | 26.15 | 28.46 | 400348 | 8.83% |
| View Chart | LAMR | 12.84 | 14.24 | 12.56 | 14.06 | 1400000 | 11.94% |
| View Chart | LPL | 8.70 | 9.45 | 8.70 | 9.35 | 984700 | 12.92% |
| View Chart | MA | 144.10 | 150.70 | 142.73 | 149.78 | 2230000 | 4.79% |
| View Chart | PZE | 6.15 | 7.05 | 6.15 | 7.07 | 298508 | 16.09% |
| View Chart | RAS | 2.59 | 2.89 | 2.56 | 2.85 | 652291 | 9.62% |
| View Chart | SQM | 24.38 | 25.80 | 24.03 | 25.73 | 1140000 | 5.49% |
| View Chart | STLD | 11.30 | 12.42 | 11.18 | 12.35 | 4920000 | 10.47% |
| View Chart | TLAB | 4.12 | 4.20 | 4.04 | 4.20 | 3390000 | 1.94% |
Saturday, January 3, 2009
List of Stochastic Divergent stocks for 1/2/2009
| Chart | Stock Symbol | Open | High | Low | Close | Trading Volume | % Change |
| View Chart | YSI | 4.40 | 4.51 | 4.11 | 4.44 | 449761 | -0.22% |
| View Chart | WMI | 33.10 | 33.96 | 32.73 | 33.77 | 3160000 | 1.90% |
| View Chart | TRN | 15.84 | 17.38 | 15.80 | 17.09 | 1260000 | 8.44% |
| View Chart | TIVO | 7.03 | 7.39 | 6.98 | 7.23 | 864620 | 0.98% |
| View Chart | TE | 12.35 | 12.85 | 12.30 | 12.80 | 1800000 | 3.64% |
| View Chart | TCK | 4.95 | 5.85 | 4.94 | 5.74 | 4810000 | 16.67% |
| View Chart | SWN | 29.40 | 31.40 | 29.35 | 31.09 | 4290000 | 7.32% |
| View Chart | SUSQ | 15.95 | 15.95 | 15.32 | 15.46 | 481984 | -2.83% |
| View Chart | STI | 29.95 | 30.18 | 29.09 | 30.04 | 3130000 | 1.69% |
| View Chart | SPW | 40.93 | 43.58 | 40.15 | 43.46 | 802741 | 7.18% |
| View Chart | SMBL | 6.81 | 6.97 | 6.65 | 6.97 | 229193 | 2.50% |
| View Chart | SID | 12.79 | 13.87 | 12.79 | 13.73 | 2100000 | 7.18% |
| View Chart | SEIC | 15.70 | 16.19 | 14.94 | 16.08 | 859418 | 2.36% |
| View Chart | PWR | 19.91 | 21.21 | 19.27 | 20.92 | 3000000 | 5.66% |
| View Chart | PWE | 11.06 | 12.15 | 11.06 | 12.04 | 3130000 | 8.27% |
| View Chart | PSS | 11.77 | 12.40 | 11.57 | 12.31 | 837024 | 5.03% |
| View Chart | PLCE | 21.64 | 22.68 | 21.47 | 22.54 | 463046 | 3.97% |
| View Chart | PG | 61.69 | 62.97 | 61.06 | 62.80 | 11000000 | 1.59% |
| View Chart | PENN | 21.37 | 23.40 | 20.99 | 22.95 | 614075 | 7.34% |
| View Chart | PDS | 8.39 | 8.54 | 7.92 | 7.99 | 2470000 | -4.77% |
| View Chart | PCZ | 22.32 | 23.92 | 22.03 | 23.81 | 1500000 | 8.77% |
| View Chart | PCU | 16.24 | 18.46 | 16.01 | 18.27 | 6790000 | 13.76% |
| View Chart | OXY | 60.61 | 62.65 | 59.50 | 62.16 | 6530000 | 3.62% |
| View Chart | OKE | 29.23 | 30.79 | 29.07 | 30.60 | 666048 | 5.08% |
| View Chart | NYX | 27.41 | 28.92 | 26.80 | 28.42 | 3450000 | 3.80% |
| View Chart | NT | 0.26 | 0.28 | 0.26 | 0.29 | 4610000 | 11.54% |
| View Chart | NRF | 4.03 | 4.48 | 4.00 | 4.17 | 613656 | 6.65% |
| View Chart | NOBL | 0.42 | 0.45 | 0.41 | 0.43 | 92146 | -4.44% |
| View Chart | MTW | 8.99 | 9.59 | 8.75 | 9.49 | 3360000 | 9.58% |
| View Chart | MOO | 27.82 | 29.61 | 27.82 | 29.52 | 658129 | 5.88% |
| View Chart | MMM | 57.55 | 59.39 | 57.52 | 59.19 | 5310000 | 2.87% |
| View Chart | MICC | 46.08 | 48.18 | 44.91 | 48.15 | 914219 | 7.21% |
| View Chart | MI | 13.85 | 13.98 | 13.20 | 13.78 | 1820000 | 1.03% |
| View Chart | MEE | 14.02 | 16.43 | 14.02 | 16.19 | 5510000 | 17.40% |
| View Chart | MEDX | 5.59 | 5.65 | 5.43 | 5.47 | 898236 | -1.97% |
| View Chart | LAMR | 12.84 | 14.24 | 12.56 | 14.06 | 1400000 | 11.94% |
| View Chart | AFFX | 3.00 | 3.22 | 2.98 | 3.12 | 487277 | 4.35% |
| View Chart | AGU | 34.74 | 36.59 | 34.28 | 36.50 | 3100000 | 6.94% |
| View Chart | ATW | 15.64 | 17.58 | 15.40 | 17.52 | 1520000 | 14.66% |
| View Chart | HCBK | 15.79 | 15.96 | 15.08 | 15.22 | 4780000 | -4.64% |
| View Chart | GLBL | 3.45 | 3.90 | 3.35 | 3.88 | 912570 | 11.17% |
| View Chart | COL | 39.25 | 40.88 | 38.57 | 40.80 | 662072 | 4.37% |
| View Chart | EWJ | 9.57 | 9.72 | 9.49 | 9.63 | 18710000 | 0.31% |
| View Chart | ENTG | 2.20 | 2.35 | 2.05 | 2.30 | 288579 | 5.02% |
List of Macd Divergent stocks for 1/2/2009
| Chart | Stock Symbol | Open | High | Low | Close | Trading Volume | % Change |
| View Chart | ATW | 15.64 | 17.58 | 15.40 | 17.52 | 1520000 | 14.66% |
| View Chart | BKS | 15.14 | 15.39 | 14.81 | 15.32 | 454501 | 2.13% |
| View Chart | BMO | 25.57 | 26.53 | 25.22 | 26.49 | 285947 | 3.11% |
| View Chart | BRY | 7.71 | 8.14 | 7.53 | 8.11 | 746751 | 7.28% |
| View Chart | BZH | 1.52 | 1.59 | 1.47 | 1.52 | 844644 | -3.80% |
Top 5 Stock Investing Books (Fundamental Analysis)
1. How To Make Money In Stocks: A Winning System in Good Times or Bad, 3rd Edition
This book is written by the founder of Investor's Business Daily. The book is good for both beginners and experienced investors. It focuses mostly on the fundamental, with a few
2. The Neatest Little Guide to Stock Market Investing
This is book teaches you all the basic information that every beginner needs to know from PE ratio to building a winning portfolio in a simple and easy to follow manner.
3. Reminiscences of a Stock Operator (Wiley Investment Classics)
The book was first published in 1923, and is a bible for many investors. This books doesn't teach you how to read a stock chart, nor does it show you how to read financial statements. Instead, it teaches you about human nature, how greed, fear, impatience controls the stock price.
4. The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition)
The book is written by Benjamin Graham, teacher of Warrant Buffet, what more do i need to say? The revised version was release on 2003 with commentary by Jason Zweig.
5. One Up On Wall Street : How To Use What You Already Know To Make Money In The Market
This book is written by Peter Lynch, one of the best money manager of America. This book doesn't teach you how to read financial statements. Instead, it teaches you how to find good companies around you. By looking around at the people around you, and the products they buy, you can know which companies are the ones to buy.
This book is written by the founder of Investor's Business Daily. The book is good for both beginners and experienced investors. It focuses mostly on the fundamental, with a few
2. The Neatest Little Guide to Stock Market Investing
This is book teaches you all the basic information that every beginner needs to know from PE ratio to building a winning portfolio in a simple and easy to follow manner.
3. Reminiscences of a Stock Operator (Wiley Investment Classics)
The book was first published in 1923, and is a bible for many investors. This books doesn't teach you how to read a stock chart, nor does it show you how to read financial statements. Instead, it teaches you about human nature, how greed, fear, impatience controls the stock price.
4. The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition)
The book is written by Benjamin Graham, teacher of Warrant Buffet, what more do i need to say? The revised version was release on 2003 with commentary by Jason Zweig.
5. One Up On Wall Street : How To Use What You Already Know To Make Money In The Market
This book is written by Peter Lynch, one of the best money manager of America. This book doesn't teach you how to read financial statements. Instead, it teaches you how to find good companies around you. By looking around at the people around you, and the products they buy, you can know which companies are the ones to buy.
Thursday, January 1, 2009
Top 10 Stock Trading books (Technical Analysis)
I read over 100 books on stock trading, including technical analysis, fundamental analysis, general investing books, mechanical trading systems. The following 10 are the best technical analysis in my opinion.
1. Trading for a Living: Psychology, Trading Tactics, Money Management
- The book is divide into major parts, Psychology, Trading Tactics, Money Management. You will learn many popular technical indicators and how to use them efficiently to generate trading signals.
It also helps you discipline your mind to be successful in the stock market. The book also covers money management skills. One thing I never follow from the book is the author's 2% stop loss, I think that is way too little in today's volatile market.
2.
High Probability trading
- This book is quite interesting as it offers a few unique points that you won't find in other books. One of them is the discussion on overbought with stochastic. He suggested that we should not sell a stock while it is in the overbought area. Instead we should wait until it pulls back from the overbought area or you miss a lot opportunities. I agree with the author as I backtest with my own mechanical trading system.
3. Profitable Candlestick Trading: Pinpointing Market Opportunities to Maximize Profits
- This is the best book I read on candlestick. Unlike other candlestick books, this books introduce candlestick and how you trade them in simple steps. For each pattern, there is a chart and the steps that you need to follow. I finished the book in 2 days and fully understand all the patterns and how they work.
4. Come Into My Trading Room: A Complete Guide to Trading
- This is the first book I read on technical analysis. I read the book 3 times for about 1 month to digest everything presented in the book. It will be much easier if you read the "Trading for a living" before reading this one as they are written by the same author. I followed the techniques presented in the book when I first started trading, but I didn't make much profit. That does not mean this is a bad book. There might be thousands of people following his technique and make fortunes. Currently, I'm only using daily charts to make my trading decisions. I don't need to use the weekly chart because usually I don't hold a stock for over a week. hold my stock no more than 1 week.
5. Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications (New York Institute of Finance)
- This book is perfect for beginners. It is a very comprehensive book that covers almost every technical indicator that you need to know. However, if you already read the top 4 books and understand each book well, then you don' t need this book as you won't learn much new. I finished the book in 2 days skipping 2/3 of the book as I already knew the concepts and indicators presented in the book.
6. Mechanical Trading Systems: Pairing Trader Psychology with Technical Analysis (Wiley Trading)
- This is a book to read if you are a programmer and knows how to build your own trading systems, or at least you should be able to program tradestation to backtest trading signals in order to read this book.
7. Short-Term Trading in the New Stock Market
- This books covers trading skills and strategies and the author's 7 steps approach to the stock market. It also covers how to set stop loss and when you should not buy a stock, when the risk-reward ratio is less than 1:3. The book offers some interesting point and history stock market events that seem to repeat itself.
8.A Beginner's Guide to Day Trading Online (2nd edition)
- If you plan to day trading online, you should read this book as it shows you different trading strategies base on technical analysis and how they apply to day trade. If you have never trade online, it also gives you step by step on how to setup an online trading account and how to read the screen.
9. Encyclopedia of Chart Patterns (Wiley Trading)
- A great book no technical analysis and chart pattern for both beginners and experienced traders.
10. Entries & Exits: Visits to 16 Trading Rooms (Wiley Trading)
- This book is written by the same author as Trading for a living and Come into my trading room. This is a great book if
a) You are a beginner
b) You read Come into my trading room
c) If you don't fully understand Come into my trading room.
This book is like a practice book on what you learn from Come into my trading room. The author interviewed 16 different people and see how they trade, he then gives his own opinion on each trade base on the author's trading method which is first presented in "Come into my trading room". You won't learn much new from this book, because you can see how other people trade in any trading blog or forum.
1. Trading for a Living: Psychology, Trading Tactics, Money Management
- The book is divide into major parts, Psychology, Trading Tactics, Money Management. You will learn many popular technical indicators and how to use them efficiently to generate trading signals.
It also helps you discipline your mind to be successful in the stock market. The book also covers money management skills. One thing I never follow from the book is the author's 2% stop loss, I think that is way too little in today's volatile market.
2.
High Probability trading- This book is quite interesting as it offers a few unique points that you won't find in other books. One of them is the discussion on overbought with stochastic. He suggested that we should not sell a stock while it is in the overbought area. Instead we should wait until it pulls back from the overbought area or you miss a lot opportunities. I agree with the author as I backtest with my own mechanical trading system.
3. Profitable Candlestick Trading: Pinpointing Market Opportunities to Maximize Profits
- This is the best book I read on candlestick. Unlike other candlestick books, this books introduce candlestick and how you trade them in simple steps. For each pattern, there is a chart and the steps that you need to follow. I finished the book in 2 days and fully understand all the patterns and how they work.
4. Come Into My Trading Room: A Complete Guide to Trading
- This is the first book I read on technical analysis. I read the book 3 times for about 1 month to digest everything presented in the book. It will be much easier if you read the "Trading for a living" before reading this one as they are written by the same author. I followed the techniques presented in the book when I first started trading, but I didn't make much profit. That does not mean this is a bad book. There might be thousands of people following his technique and make fortunes. Currently, I'm only using daily charts to make my trading decisions. I don't need to use the weekly chart because usually I don't hold a stock for over a week. hold my stock no more than 1 week.
5. Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications (New York Institute of Finance)
- This book is perfect for beginners. It is a very comprehensive book that covers almost every technical indicator that you need to know. However, if you already read the top 4 books and understand each book well, then you don' t need this book as you won't learn much new. I finished the book in 2 days skipping 2/3 of the book as I already knew the concepts and indicators presented in the book.
6. Mechanical Trading Systems: Pairing Trader Psychology with Technical Analysis (Wiley Trading)
- This is a book to read if you are a programmer and knows how to build your own trading systems, or at least you should be able to program tradestation to backtest trading signals in order to read this book.
7. Short-Term Trading in the New Stock Market
- This books covers trading skills and strategies and the author's 7 steps approach to the stock market. It also covers how to set stop loss and when you should not buy a stock, when the risk-reward ratio is less than 1:3. The book offers some interesting point and history stock market events that seem to repeat itself.
8.A Beginner's Guide to Day Trading Online (2nd edition)
- If you plan to day trading online, you should read this book as it shows you different trading strategies base on technical analysis and how they apply to day trade. If you have never trade online, it also gives you step by step on how to setup an online trading account and how to read the screen.
9. Encyclopedia of Chart Patterns (Wiley Trading)
- A great book no technical analysis and chart pattern for both beginners and experienced traders.
10. Entries & Exits: Visits to 16 Trading Rooms (Wiley Trading)
- This book is written by the same author as Trading for a living and Come into my trading room. This is a great book if
a) You are a beginner
b) You read Come into my trading room
c) If you don't fully understand Come into my trading room.
This book is like a practice book on what you learn from Come into my trading room. The author interviewed 16 different people and see how they trade, he then gives his own opinion on each trade base on the author's trading method which is first presented in "Come into my trading room". You won't learn much new from this book, because you can see how other people trade in any trading blog or forum.
Great free sites for stock traders
1. Stock Screener & Charts & Stock Training Tools (Free)
www.dojispace.com offers free technical analysis stock screener. Currently, their system includes candlestick, macd, stochastic, rsi, moving average, and more. They also offers free chart where you can see your scanned result as slide shows. Virtual Stock Trading allows you to practice your stock trading skills via their stock training tools
2. Stock Chart
www.stockcharts.com offers stock charts for users. You can customize the parameters for your own market.
3. Stock Education
www.investopedia.com offers great articles and tutorials for both beginner and experience traders.
www.dojispace.com offers free technical analysis stock screener. Currently, their system includes candlestick, macd, stochastic, rsi, moving average, and more. They also offers free chart where you can see your scanned result as slide shows. Virtual Stock Trading allows you to practice your stock trading skills via their stock training tools
2. Stock Chart
www.stockcharts.com offers stock charts for users. You can customize the parameters for your own market.
3. Stock Education
www.investopedia.com offers great articles and tutorials for both beginner and experience traders.
Stock to watch for tomorrow (1/2/09)
Stock Symbol: PNK
Company: Pinnacle Entertainment, Inc
Trading Price: $7.68
Trading Volume: 1.21M
Average Volume 975000
Entry Signals
1. Relative Strength Index (RSI) is pointing up up to 60
2. Candlestick is bullish (bullish engulfing pattern)
3. Stochastic crossover over to 65
4. Trading volume is greater than average
Something to watch out
1. Relative Strength Index (RSI) and Stochastic are getting closer to the overbought area (RSI is 70, Stochastic is 80 to be considered is overbought)
2. The stock rose 10% yesterday, so people will take profit tomorrow. However, if the stock starts to drop with strong volume tomorrow, you must sell the stock.
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