Two Contrarian Trades for the Coming Decade
The last time Nicholas Vardy was a guest blogger he generated quite a buzz with his article and the comments that followed. This article should do the same, but you’ll have to read on and let your thoughts and opinions be heard. After you read the article and comment, please visit Nicholas’s site (Global Stock Investor) to read more articles and opinions from him.
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U.S stock markets have just come off of their worst decade ever, with inflation-adjusted returns in the S&P 500 dropping as much as 30%. That’s a far cry from what investors were expecting at the turn of the millennium. The Internet was creating paper billionaires overnight.
Fast forward 10 years, and Nasdaq is still 40% below its peak. In addition, the Pew Research Center just designated the past decade as the “worst in 50 years.”
But just as there was a technology bubble in 2000, today there is also a strong “pessimism bubble” about the U.S. economy over the coming decade. And like all bubbles, this one will eventually pop – as will the rising China bubble. Understanding this is the key to ensuring you don’t end up like investors who have spent the last decade waiting for Cisco to “get back up to $80.”
Rarely has the global stature of the United States been lower than it is today. A recent Washington Post/ABC poll found that 61% of the American people think the United States is in long-term decline. In another poll, 44% of Americans said that China was the top economic dog in the world, compared with only 27% favoring the United States.
Long Entries and the Opposite Thirds Rule
Today I’d like to welcome Steven Lee Jones to the Trader’s blog. One of the things that makes him so successful in his trading plan is his entries. Steven has written an interesting article regarding how he enters a trade that I think you will enjoy. Please take time to read the article, comment with your thoughts about his methods, and please visit ForexProfitLauncher.com to watch a video from Steven.
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First of all, I want to thank Adam and Brad for allowing me to post here today. I’m mainly a short-term forex trader and over the years I’ve worked on the following entry method that’s proven successful for me. It’s not perfect by any stretch, but test it out on your own to see if it might be a good fit for your style. I truly value the blog and hope that my article can give you some insight into my trading and hopefully it can help yours, so let’s dive right in.
Finding an Edge with Support and Resistance
Today I would like to introduce Karen of Wealth Wizard World. Karen is an experienced trader who took an interest in the markets at a very young age has continued since then. Through her own blog and website, Karen shares what she has learned in her twenty-plus years and today she has agreed to share this knowledge with Trader’s Blog readers as well.
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I’ve traded for many years - about 20 to be precise. During the early years, I read everything I could get my hands on and tried several methods. The lessons learned were not what to do, but what not to do, and yet I was looking for something more.
There are lots of indicators to use and chart patterns to watch. What bothered me was that I realized that indicators lag. They respond to the movement of price.
Chart patterns work very well for some people, but they didn’t do much for me. I saw several head and shoulders patterns break to new highs; flags, pennants, and wedges break opposite of what they were supposed to do. What was an eager, studious, young trader supposed to do?
A Real-Time Lesson in the Supply and Demand of Investing
Damien Hoffman from WallStCheatSheet.com has offered to share his market insight with Trader’s Blog readers today. Read on to learn what he thinks about gold, the US dollar, and what he sees and predicts will and needs to happen in the US economy.
Damien will also be answering any questions that you might have via our comments section below. We invite you to read the article, share your thoughts, and visit WallStCheatSheet.com.
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With India and China’s strong demand for gold, it’s the perfect time to look deeper into how markets work …
Many people are patriotically upset about the US dollar’s descent. However, it has been a direct result of the debt we’ve voluntarily assumed for all types of things including cheap goods and wars. In recent years, we’ve now decided to make matters worse by bailing out banks and propping up the housing market. In years to come, the aging boomers will add another layer for healthcare and social security. Read more
Day Trading E-mini Index Futures - 9 Key Trading Concepts
Today I’d like everyone to welcome back Marc Nicolas from Tradingemini.com. Marc would like tip his hand a bit regarding his methods for trading the E-mini and how he tries to avoid being the 90% of traders that lose money! Please feel free to comment below with any questions or insight for Marc, and be sure and check out his site Tradingemini.com for a free webinar.
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Trading is inherently risky, but by following nine fundamental money management rules, you keep your capital safe while building your trading experience.
Our 9 rules to keep you in the 10% winning club vs. 90% of traders who lose money:
1. Look for high volume markets with a thin spread - Orders are filled quickly and it has high volatility so there are opportunities for 2 to 4 good trades during the day. The E-mini S&P500 Index Future is a good example of this type of market (Each point is worth $50, split into 4 ticks of $12.50 and there are 4 contracts a year, traded on the Chicago Mercantile Exchange).
A Market ‘Tell’ That Works: Breadth and Depth (With a Twist)
Today, James from FreeTradePicks.com has put together a compelling article about how you can use volume to improve your trades. After you read it, he invites you to register for the FreeTradePicks.com newsletter to receive all of his updates.
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For those of you who think the market does not drop hints about its next direction, don’t be so sure. While the major indices do not send explicit telegrams as to their intent, some subtle clues can be gleaned if you just know where to look. We have found that careful study of breadth and depth is quite effective at spotting looming trend reversals.
Leading Market Trends for 2010
For today’s guest blog post, I’ve invited Amey S. from The Wild Investor to share some things to look for in the markets for 2010. Please share your thoughts for 2010 by commenting on this post.
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If you have followed any of my work, then I’m sure you’re well aware of the simplicity I try to put towards stock trading - especially when it comes to spotting trends. In theory, I like to think of trends as a cause-effect relationship.
Due to situation A, sector B should perform well. Then, go find solid companies in sector B that fall under your trading strategy.
As we inch closer to shutting the door on a relatively successful 2009, yet miserable decade in the stock market, we must now focus our attention on the New Year. The upcoming year will not only mark the start of a new decade, but it will also jumpstart the “new” market, a “new” way of doing business, and the “new” way consumers behave. Basically 2010 should be everything that the first decade of the new millennium wasn’t.
Catching the Wave of Success and Staying on Top
For today’s guest blog post, I’ve invited Omar Quraishi from QVirtue.com to help us to understand and ride the wave of trading success. Please enjoy the article and comment below!
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A commitment to trading means a commitment to continued effort and education. The road to success can be long and there are often tough times along the way. It is often the case that many people who set out to trade are blown out of the market within a few years, months, or even within a few days.
From my experience, and also many of the traders that I have met, there seems to be a consistent learning path that we all take. As a technical analyst I found a basic picture was the best way to describe the journey.
What Kind of Investor Are You?
I found today’s author Mr. Moneybags’ through his blog BigFatMoneybags.com a little while back. His view on finance isn’t necessarily the norm and I thought it was great. Moneybags take on finance adds a bit of humor in an atmosphere that can too often become stressful. Without further delay I present, Mr. Moneybags.
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What kind of investor are you? It’s a simple question really. Although, it is surprising how few people can answer that question due to their lack of investment strategy – these are the same people than end up collecting empty cans off of the sidewalk for spare change. Let’s take a look at the four prominent types of investors: Read more
Trading From the Open
Today I’ve invited Douglas Newberry from Investing Systems Research Lab to come and impart some “open” wisdom upon us. The article is a short one with some good chart examples for you to glance over. Please enjoy the article, comment (as always), and visit Investing Systems Research Lab.
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Holding overnight can be dangerous and being on the wrong side of the “morning gap” has taken its toll on all of us at one time or another. This is just one of the many reason we like trading from the open.
Trading from the open can be a real adventure, but when you think about it there are really only a couple things that can happen.
Stocks can open flat in which case one must let the market establish a bias for the day. It is always better to wait out the first few minutes in order to let all the overnight orders clear and then we can see what will happen today.
