Category: Technical Analysis

The Trader: Trading Turnarounds

Merry-go-round

Everyone likes a turnaround. This is because people like the idea of buying at the bottom and reaping the rewards.

However, trading turnarounds can take a lot of time. Businesses are often slow to change and it is not a quick process.

This article will show you how to trade some potential turnaround stocks and give you some pointers to look at next time you are considering trading a turnaround.

The Trader: A look at the pharmaceuticals sector

The pharmaceuticals sector is another popular sector with private investors and retail traders. This is because the volatility is high and traders are often attracted to the blue-sky lottery ticket type stocks. The road for a junior pharmaceutical company is long and hard. First of all, drugs need to go through three phases of testing […]

The Trader: A look at the commodities sector

The commodities sector is popular with private investors and retail traders. Life changing gains (and life changing losses) can be made on this sector. Back the right minor and you can see stocks appreciate in value several-fold, although the vast majority never amount to anything other than value destruction through endless placings. In this article […]

Taste the Feeling

Taste the Feeling is a Coca-Cola slogan from 2016. I think it’s a very good, because Coca-Cola isn’t just a product. It’s a religion. The fervour seen during the launch of New Coke, launched in 1985, as a response to Pepsi’s taste tests showing consumers preferred a sweeter alternative, showed that it wasn’t about the […]

Why mindset is the most important factor

“Nature versus nurture” has been a debate that has raged for hundreds of years. Sir Francis Galton (pictured above), who was a Victorian era statistician and psychologist (amongst investor, explorer, and other disciplines) coined the phrase in his book Hereditary Genius. He had been influenced by Charles Darwin’s Origin of the Species, and so in […]

Cups and bowls

Cups and handles, and bowls, have been very popular with trend traders. These patterns can be powerful as they show sentiment of the stock gradually changing and buyers slowly overpowering suppliers of the stock. This is a classic cup and handle pattern. The cup is the deeper bowl, along with a handle which is the […]

Support & Resistance

Support and resistance are two common concepts when it comes to technical analysis. They are the most basic but also the most important points when plotting levels on a chart. Technical analysis is a self-fulfilling prophecy as many traders and investors look at the same levels on charts, and therefore support becomes support because people […]

Two Technical Analysis Tools You Need: Candlesticks and Volume

We briefly touched on technical analysis in my previous article ‘The Four Stages of a Stock’, and in this article I want to introduce some simple technical analysis components, which, if understood, can provide a lot of clarity on price action in the market. Candlesticks are said to have been invented by a Japanese rice […]