The Secret to Staying One Step Ahead of the Market

For 37 years, Personal Finance has helped investors beat the market—in bull and bear markets.  Today, editor Elliott Gue shares his #1 tip for not just surviving, but thriving in this volatile market. Be sure to comment with your own tips and visit Elliott at Personal Finance.
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There’s an old concept in statistics and economic modeling known as parsimony—or, simply, less is more.

Economic models and analysis that rely on the consistent application of fewer indicators often yield better and clearer forecasts.

Unfortunately, most of today’s market “experts” have apparently never heard of that concept.

Former Federal Reserve Chairman Alan Greenspan was famously fond of obscure economic statistics and data points. Economists in general love to underscore arguments with pet indicators or proprietary indexes. Continue reading "The Secret to Staying One Step Ahead of the Market"

Get Big Results with “Optionality”

Today's Guest Post comes from Chris Mayer of Penny Sleuth. Get Big Results with "Optionality" originally appeared in the Penny Sleuth. In this piece, Mayer explains the concept of "Optionality" as a way to battle the uncertain and fickle market conditions. If you enjoy this post, please click here to learn more about Penny Sleuth and a complimentary report which will share 3 stocks poised to breakout.
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“The world has changed. It is a more fragile and less stable place.”

The speaker was Joshua Friedman, the co-chief at Canyon Partners, which manages $20 billion. He was speaking at Grant’s Spring Investment Conference, which I attended in early April.

Friedman used the imagery of the old bell curves. There is the normal bell curve and the “new normal” curve with fatter tails. In plain terms, it means more crazy things will happen. It means outliers will become more common. It means the unexpected will happen more frequently. Wildness lies in wait, as Chesterton had it.

In many ways, markets have always been this way, as the late Benoit Mandelbrot observed. For instance, financial theory – based on the old bell curve – predicts that a market move of 7% or more in a single day will happen once every 300,000 years. Yet the 20th century alone had 48 such days. “Truly, a calamitous era,” Mandelbrot writes, “that insists on flaunting all predictions.” Continue reading "Get Big Results with “Optionality”"

Spying on the insiders...

Guy Cohen is the creator of The Private Traders Club, Flag-Trader, The OVI Index and OptionEasy.  He is also the author of the best selling trading books "Options Made Easy", "The Bible of Options Strategies" and "Volatile Markets Made Easy" (FT Prentice Hall).

Guy specializes in stock market trading and he has created numerous online applications for stocks and options traders, with his hallmark being his user-friendly approach and liberal use of illustrations.  His clients include NYSE Euronext, The International Stock Exchange (ISE) and FT Prentice Hall.
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What’s the Best Way of Making Money in the Stock Market?

Well that’s a pretty open ended question.  First, it’s always best to specialize.  As with any skill in life, you cannot be a jack of all trades in trading.   Continue reading "Spying on the insiders..."

Applying Technical Methods to Today's Trading

Excerpt from John Murphy's seminar, “Applying Technical Methods To Today's Trading,” offered on INO TV Free...

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For those of you that trade the futures markets, there are a lot of other things outside the future markets that you should be following. But, I guess my bigger message is... for those of you that aren't in the futures markets, whether you trade them or not, the futures markets have a tremendous impact on what happens in the other markets.

I keep pointing out to the Wall Street crowd for example, that if you're going to trade stocks, you have to know what's happening in the futures markets, because they affect inflation, they affect interest rates, they affect stock groups, and they play a tremendously important part in the whole financial spectrum.”

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In this seminar, Murphy shares his non-traditional methods for selecting markets to trade based around commodity trends and leading indicators. His intermarket analysis is put in action to show just how commodities can put a drag or a rocket under a stock.

Murphy is a former CNBC analyst, the principal of JJM Technical Advisors, and author of Technical Analysis of the Futures Markets (1986), Intermarket Analysis (1991), and The Visual Investor (1996)

Click here to watch this complimentary, educational seminar!

Best,
The MarketClub Team

PS- If you've already signed up for INO TV free, or if you have an account with INO, just enter your email and password into the box to avoid reregistration.

Newest Member!

We want to wish one of our own a very sincere congratulations on being a new mommy! Lindsay went into labor yesterday and was blessed with a beautiful baby girl this morning at 5:06 a.m. ET. Marley is 6lbs, 1oz. in weight and 18 inches long. From everyone at MarketClub, we want to welcome our newest member of MarketClub...Marley B! Congratulations Lindsay and Brad!