Trading Psychology – Do's and Don'ts

Trading Psychology

Investing in the capital markets is a business that requires a strategy and risk management that will consistently generate returns.  To achieve success as an investor, individuals need to develop a trading style that is in line with their personality and level of risk tolerance.  Once an investor designs a style and strategy it is imperative that they endeavor to stick to that style.

Veering off course can be hazardous to the health of any business plan, and can generate a negative spiral that eventually puts the business in a situation where losses can ruin the business.  Developing an investment style requires some analysis of your business personality, along with your risk tolerance.  This process takes time, but can be made easier by using Binary Options as an investment vehicle as it mitigates some of the issues related to generating a successful trading plan. Continue reading "Trading Psychology – Do's and Don'ts"

Tesla Reports, Apple Builds and Netflix Does Its Thing

Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Tuesday, the 5th of November.

There's a lot to cover today starting with Tesla (NASDAQ:TSLA), who reports earnings after the bell. Netflix (NASDAQ:NFLX) is looking good and Apple (NASDAQ:AAPL) is creating a new factory in America to build Apple products. A major biography about Amazon (NASDAQ:AMZN) and its founder, Jeff Bezos, is up for discussion and I'll also be covering why Pandora Media (NYSE:P) is not too concerned about Apple's new iRadio service.

Tesla (NASDAQ:TSLA) Reports Earnings After The Bell

Can Elon Musk do it again and sell more Tesla S cars than his critics say he can? After the bell today, Tesla (NASDAQ:TSLA) will report its third-quarter earnings and judging by yesterday's market action, which saw this stock jump 8% in a day, perhaps the earnings are going to be better than what the critics are thinking. With the long-term monthly Trade Triangle positive on this particular stock, I see no reason to stand in front of the electric car revolution. Continue reading "Tesla Reports, Apple Builds and Netflix Does Its Thing"

A New Way To Look At Netflix

It has been a little over 11 months since the first major buy signal in Netflix (NASDAQ:NFLX) at $84.95 on December 4, 2012. I have remained bullish on the stock since that time, which turned out to be one of the best trades for the year so far.

Today I would like to share with you how to use the Relative Strength Index (RSI) to enter a position in any up-trending stock. When a stock pulls back, it is difficult to know how far that stock will fall. This is where the RSI comes in and can be an enormous help. When the indicator moves over 70, it is considered overbought and conversely when the indicator moves below 30, it is considered oversold. This was the original thesis of Welles Wilder when he developed the RSI back in the mid-70s. Later it was discovered that when a stock pulls back to the midpoint of 50 or just below, it actually finds support.

In my Netflix (NASDAQ:NFLX) example, I have highlighted both the price and the RSI support in yellow. The horizontal line at 50 on the indicator is also highlighted in yellow. As you can see on the chart, Netflix fell back to support twice during the last four months. Each time the RSI touched or moved just below the 50 line, it found support and made a strong recovery rally.

Yesterday, November 4th, Netflix (NASDAQ:NFLX) had its second highest close for the year. With all of the Trade Triangles positive on this stock, plus it has just come from an RSI support area (number 2), I expect to see this stock trend higher in the weeks ahead.

The moral of this post is, whenever you see a strong uptrend, you might want to check out the Relative Strength Index (RSI) for a low-risk entry point.

Adam Hewison
President, INO.com
Co-Creator, MarketClub

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Twitter faces a slew of hurdles heading into IPO

Twitter (NYSE:TWTR) has built a digital town square that's teeming with activity but riddled with financial potholes. Seven years after co-founder Jack Dorsey sent the first tweet through the online messaging service, more than 500 million posts are shared each day by everyone from the Dalai Lama to Justin Bieber.

But all the chirping hasn't translated to profits nor is it expected to any time soon.

As Twitter (NYSE:TWTR) prepares to complete its initial public offering of stock this week, the San Francisco company's history of losses totaling nearly $500 million is raising questions about its ability to turn a cultural phenomenon into a sustainable business. Continue reading "Twitter faces a slew of hurdles heading into IPO"