Tag: money management techniques

Is It Time To Buy Yelp, Inc. (NYSE:YELP)?

Posted on by The INO.com Team

Yelp (NYSE:YELP) is the go-to app for reviews on restaurants, shopping, local services and the like.

Earlier this year in March, Yelp was trading over $100 a share and looked on its way to the moon. However, just the reverse happened and Yelp lost half its value by early June. Since that time, the stock has recovered and traded as high as $80 in early July.

There are several reasons why I like this stock right now and they're all technical. I have no inside knowledge of what is going on inside Yelp, but I can say that the technicals are looking very positive for the stock. Today, the weekly Trade Triangle kicked in, indicating that the intermediate trend is now inline with the longer term uptrend.

1. All of the Trade Triangles are positive and displaying a +100 Chart Analysis Score.
2. There is a monthly Trade Triangle in place.
3. Pivot Point - measures the move to $85 a share.
4. Weekly Trade Triangle kicked in today at $76.49.
5. The RSI indicator is trending to the upside and is over 50.
6. The MACD indicator has recently turned up.

Just remember, there are no guarantees in trading, even with all the positive indicators. I'm looking for Yelp, Inc. (NYSE:YELP) to trade back to the $85 level in the near-term. As always, please remember to use money management and stops that work for your own trading strategy.

Good luck and every success trading in Yelp shares,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

Keep Your Eye On First Solar, Inc. (NASDAQ:FSLR) Today

Posted on by The INO.com Team

One interesting stock to keep your eye on today is First Solar, Inc. (NASDAQ:FSLR), which broke over a long-term downtrend line in October 2013 and has been moving sideways, but slowly inching upwards nonetheless.

Today's market action in this stock is going to be important because if it closes towards the highs of the day, somewhere around $64.00 as of this writing, a Japanese candlestick "morning star" formation will be created. This can be a strong indication of a reversal to the upside.

This stock has also made a double bottom at $60.75 and again at $62.58. On both the monthly and weekly charts, the RSI level remains above 50, indicating that the longer term uptrend is still intact. This coincides with the monthly Trade Triangle, which remains green and positive. Continue reading "Keep Your Eye On First Solar, Inc. (NASDAQ:FSLR) Today" →

Time To Buy Gold

Posted on by The INO.com Team

Yesterday, the spot gold market flashed a major trend change to the upside. Major trend changes do not occur that often and when they do I like to pay close attention to them. The signal came in at $1,331.45, and even though gold is now lower than that point, it is still a valid signal.

With all the Trade Triangles now positive and the fact that we are seeing a pullback today in gold (FOREX:XAUUSDO), this may be an ideal time to get long gold in the ETF SPDR Gold Shares (PACF:GLD), a leveraged ETF, or in futures.

The current pullback on the intraday 15-minute chart puts this market back into a Fibonacci support area which should offer good support. With the long Fourth of July weekend, I do not expect anybody will want to be short this market going in to the weekend. I expect to see some recovery later today from the lows seen this morning.

There are no guarantees in trading, but with all of the Trade Triangles positive on gold, I feel this is a fairly low risk trade on the upside. As always, you should protect your position with money management stops. If you'd like to learn more about money management stops, you can read about them here.

Chart Legend: Continue reading "Time To Buy Gold" →

Preparing for 2010 Demands Reviewing 2009

Posted on by The INO.com Team

Today's invited guest blogger is "Forex" Joe Atkins the Chief Strategist of OU Forex Trading.  Joe is mainly focusing on forex in this article, but the principals can be applied to all markets. Please check out the article today. Feel free to comment below, and see a preview of the Forex project Joe's been working on for the past three months.

=================================================================

Our self-esteem, or self-worth, is often based on our failures and successes in life. I challenge each of you to generate an honest appraisal of yourself before making a commitment to take back full responsibility of your financial affairs.

Some people have faced a few key failures in life and have never recovered, while it seems that people with high self-esteem take pride in how they have faced adversity and lived through adversity.

How did you fare in 2008 both financially and personally?

How have you faced adversity in 2009 both financially and personally?

Continue reading "Preparing for 2010 Demands Reviewing 2009" →

The biggest secret to successful trading

Posted on by The INO.com Team

The biggest secret to successful trading is ...

Trading Discipline

Emotions are probably the biggest obstacle any trader has to overcome. Many traders become losers because they can't follow a plan. They see a couple of losses, get excited, abandoned the plan and start to take wild shots at the market.

Traders who develop a sound set of trading rules that match their financial situation with their objectives, and then stick with those rules, increase their chances of becoming big winners. Trading discipline can be more important than your trading system.

Discipline means you must become mechanical in making trades when certain price actions occur. You must shut off your emotions, and not accept one trading signal over another. Disciplined traders let profits run and keep losses short by following rigid guidelines.

Again, discipline does not mean you will have perfect results. If you've select a diversified portfolio, you know that you can expect losses in some markets. Yet, discipline forces you to trade the whole portfolio and keep you from second guessing your system. If you have a training system that's proven successful, discipline may be the only thing you need to get profitable returns.

Note these concepts all work together - you can't have the right trading system and no discipline, you can't select the right trade without the right system, you can't diversify without having adequate capital, etc. If you adhere strictly to all of these rules of money management, trading may not be as glamorous as you probably thought it would be.

However, by using sound money management techniques, you spread out your risk and take a conservative approach aimed at getting 25-50% returns on your investments, year in and year out. That's a good return on investment in anybody's book, and that's the approach any new trader should take towards markets.

Adam Hewison

President, INO.com

Co-creator, MarketClub