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Unlike traditional investing, which, while still risky, allows you to sit and observe whether your thesis is correct, trading requires rapid responses, and opportunities arise quickly — but also fade quickly.
The Fibonacci sequence might seem like just a set of numbers at first, but its importance in trading lies in its ability to help identify potential levels of support and resistance. These are key levels where a stock or asset might pause or reverse during its price movement. Traders use Fibonacci retracement levels to gauge how much a price has pulled back from a previous trend, and they look for price action to either bounce or continue at these levels.
Simply put, a measured move is a method where you measure areas of price action to predict the next move. They're very reliable because what you see on your chart represents two things: mob mentality and math. That's all it is.
I want to dive into something that's really important for all retail traders out there. It’s Peter Lynch’s list of the “10 Most Dangerous Things People Say About Stocks.” You might’ve heard it referred to as the “10 Dumbest Things,” but Lynch’s team thought that sounded too harsh. Regardless, these insights are crucial for avoiding common pitfalls in trading.
I use wedges all the time. Wedges are basically channels – that's the easiest way to put it. A wedge is a channel where the lower trendline is present, but within the upward-sloping or downward-sloping channel, there's also a second trendline...
A rotation zone, and it’s named that for an important reason, is a spot where markets tend to rotate, rotate into and then continue...