Seeking Alpha

StockLegends.Com's  Instablog

StockLegends.Com
Send Message
Stock Legends is primiarily focused on the small/micro cap segment of the stock market. We have developed a reputation for delivering the hightest quality stock picks available in the market today. With market conditions on the big board segment of the market so questionable in today's trading... More
My company:
Stock Legends
View StockLegends.Com's Instablogs on:
  • Stock Legends Radio Episode 17

    Tuesday May 29th 10:00am EST

    http://www.stocklegends.com/stock-market-news-radio/

    Hosts Quickdraw, Matt_Chart

    Topics:
    Dow Jones Crash Update. Traders in The Money!
    Gold and Silver Technical OUtlook 2012
    China's Yuan Sonn A Gold Backed Currency
    Facebook IPO - The Worlds Biggest Pump n Dump?
    Jp Morgan investigates itself. Nothing To See Here
    Greek Bankruptcy Inevitable
    Too Big To Fail Banks On Steroids
    Occupy Bilderburg 2012

    Welcome to The Stock Legends Radio Show! We are the go to, one of a kind source for the most current stock market news, economic analysis, financial research and information on the web! At Stock Legends Radio we take pride in giving our listeners the inside scoop and headliners away from the grasp of the everyday mainstream media. The shows hosts QuickDraw and Matt_Chart will take you on a wild ride and fill you with stock tips, education, and not the convoluted truths that you will hear from the your favorite TV stock market news portal.

    Do you trade the small or micro cap market? Then you will appreciate our exclusive Ceo interviews from the hottest undervalued stocks! We are used as a portal often for public companies to release their best stock market news! When you listen or watch to stock market news through one of the mainstream media portals, you may not think of it but most of the content that you are receiving is filtered. At Stock Legends Radio we will bring you the inside scoop, find out what is really going on, not what you hear from your other stock market news portals. Matt_Chart our technical analyst will point out both technical and economic factors that may dictate your current investment positions. More times then not these indications will be accompanied by a custom report that will be stored in the reports tab above. These reports are a mix of stock market news headlines, technical indicators, and fundamentals. Matt_Chart has years of technical and economic experience and is one of the most educated and consistent technical analysts in the business.

    Whether you trade the OTC, NASDAQ, Options, or Commodities you will find your go to place for updates on all aspects of the market and breaking stock market news. The Stock Legends Team has been on the front end of identifying subjects that many of main stream media avenues did not pick up and probably could not even understand. We covered rehypothecation and the impact it was having before there were any available searches on the subject through any stock market news or coverage rescource. When the MF Global debacle first hit the airwaves Matt_Chart pointed out that he felt MF Global was going to run and hide behind the rehypothecation rule for non institutional broker/dealers.

    The underlying point is that the Stock Legends team doesn't bring you the jump on the bandwagon stock market news, our stock market news updates, analysis, and topics and dragged out of the depths of the darkest corners in the investment market to ensure that you are getting the very best content and information. This will put you ahead of the pack in the race to success and overall minimized risk.If you trade in the OTC we have exclusive Ceo interviews usually once or twice per week with the Ceo's of undiscovered undervalued OTC market companies! Get the quality information that you want and need fast and direct through our stock market news radio show.

    Get there first, wait for the pack to show up and profit off of your trades. When listening to a Ceo interview you have the opportunity to get a feeling for the company, feel the passion or lack of behind the management of the company. See how the Ceo reacts to tough questions. All of these factors can be a great tool in any research phase of your analysis. Often making a large investment in a public company, especially Pinks and OTC is similar to buying a used vehicle without knowing how many miles it has or even what color it is.

    The professionals at Stock Legends spend our days doing research and perfecting techniques to supply you with all of the toola that you will need to be personally successful! As you grow, we grow and we want to see each and every one of our listeners succeed and learn in the process.

    Where do you go currently for your stock market news?

    I can tell you one thing, once you listen to Stock Legends Radio you will realize that you just found the ultimate resource for quality up to date stock market news and information!

    Every Monday At 10:00 A.M. Eastern Time is our radio segment, we will send out email alerts for any intra week shows and interviews so be sure to sign up for our newsletter! Thanks for supporting our show and the best stock market news portal on the web!

    http://www.stocklegends.com/stock-market-news-radio/

    May 29 1:27 AM | Link | Comment!
  • Dow Jones Crash | A Technical Prediction

    dow jones crash

    Why The Dow Jones Will Reach 11700 Sooner Than Expected

    Stocks and Markets rise and fall in discernible patterns motivated by our collective emotions. These emotional patterns remain present in the markets despite Government manipulation through programs such as Currency Swap agreements with the EBC, Quantitative easing programs, and other monetary injections of capital into markets that are simply too numerous to catalog for the purpose of this article. These injections of capital will produce a overall positive trend in the markets, yet contained within the trend are periods of volatile downside risk.

    This article will outline a comprehensive technical analysis of the Dow Jones Industrial Average (DJIA) using numerous methods to predict a likely move the DJIA will soon reach 11700 points. We will use trend analysis, Fibonacci retracements with support and resistance levels to determine our conclusion. If history is indeed a repeatable lesson to learn, it will lend even more credence to our thesis.

    The Trend Is Your Friend Until It Ends

    The chart below depicts two recent trends in the DJIA depicted by the dotted green upward slanting lines. The general rule with trend lines is that once they are violated, a move in the opposite direction will occur.

    (click to enlarge)Dow jones technical analysis

    The first green trend line follows along as a support, pushing the DJIA upward to 12876 points. After the rising trend line was violated in May of 2011, a new high failed to be reached, and we witnessed a very sharp pull back and the DJIA fell until it stabilized in the 10600 point area in September that same year. Let us take note of the grey horizontal lines which indicate Fibonacci retracements. Fibonacci retracements are common retracement patterns that stocks and markets can retrace to. Acquiring a calculation from the beginning to the end of a trend, common Fibonacci retracement areas are 38.2%, 50.0% and 61.8%. After the first trend ended, the DJIA crashed a near perfect 61.8% retracement.

    The second trend indicated in our chart began at around 10600 points on the DJIA and lasted until around 13338 points on the DJIA. Our chart indicates that the trend line was violated in April 2012, and just two weeks ago failed to reach a new high. Currently the DJIA is being supported at 12700 points. It is worthwhile to note that a previous resistance had existed at this level. Technical analysis suggests that once a resistance level is violated, that same level will behave as a support. This is likely why this level has been chosen to act as a current and quite possibly temporary support.

    Any violation of this 12700 support level will likely trigger a completion of the 61.8% retrace that will place the DJIA right near our target of 11700 points. Now that the upward trend has ended, history will repeat. The rules of technical analysis suggest that a subsequent downward move must now follow. This target prediction is reinforced as the DJIA had previously built up a very strong resistance at this level, and it likely will behave as a support in the future.

    How To Profit From This Knowledge

    You can short the DJIA and profit from it by purchasing shares in a reverse EFT and some examples are below:

    DOG - Short Dow 30 DXD - UltraShort Dow 30 SDOW - UltraPro Short Dow 30

    You want to be very selective on your strategy with this type of a setup to minimize risk as much as possible. Below are two methods you could use when determining your entry to minimize risk. Method one consists of patiently waiting at the 13330 point resistance area on the DJIA, expecting a eventual sharp pull back. Remember that A violation of this resistance area will offset any bear prediction and you will want to exit your short position immediately. Method two consists of waiting for the violation of the 12700 support level and entering just below it. We would want to exit if the price moved back above it to minimize our risk.

    Whichever method you choose, remember you will be minimizing risk which is the way to succeed when trading the markets. If the trade moves in your favor, develop a strategy to maximize your gains. At Stock Legends we cannot guarantee a 11700 point DJIA, but if history repeats and the rules of technical analysis apply, it is a high possibility.

    Be sure to stop by the Stock Legends Technical Analysis Chart School for free training videos and articles to learn more about technical analysis.

    Free technical trading school here: click

    Happy Trading

    Matt Chart

    Tags: DOG, DXD, SDOW
    May 14 5:44 AM | Link | Comment!
  • 8 Must Read Rules For Stock Traders

    Stock Trading Rules

    At Stock Legends we want our followers to be as profitable as possible so we took the time to put together some basic trading rules for you to follow. We hope that you will use these trading rules to assist you in your trading to become more profitable trader.

    Mastering Your Emotions

    Mastering your emotions is likely the single most important concept that you will need to develop to be a successful trader. Humans drive markets, and when people rely on their emotions to make trading decisions they usually end up in A disaster situation. Markets are primarily driven by two basic human emotions, fear and greed. Mastering your emotions will be your most difficult task and you will not be successful until you master this rule and these other basic trading rules. There are rules to follow in every successful venture and these trading rules are no different.

    Fear and Greed

    Warren buffet said be fearful when others are greedy and be greedy only when others are fearful. There is a lot of truth to this statement, and all too often we allow emotions to make our decisions for us. If we operate on that basis of allowing our emotions to rule our trading decisions and ignore the basic trading rules, we will usually end up out with loosing trades most of the time. The key to being successful at mastering your emotions is to develop and write down a trading system that works for you, meaning your own personal strategy, and most important, to follow your system guidelines and these trading rules. If you put emotions aside, and simply focus on your strategy, you will dramatically increase your success. If you find that certain aspects of your system are failing, refine it and make it work for you. Most importantly over everything else is to take a few minutes each day and read these trading rules. They will assist you exponentially.

    Analysis

    Make sure you are familiar with both Technical and Fundamental Analysis.

    Technical Analysis is using price, volume, support, resistance, moving averages, trends and many other indicators to determine a price forecast.

    Fundamental Analysis of a business involves analyzing financial statements and health, its management and competitive advantages, and its competitors and markets.

    Make sure you are familiar with both, as the more tools and knowledge a trader has in their disposal, the more successful they will be. If you can find a common ground between both of these forms of analysis you will be a more well-rounded trader. Look for good technicals, good fundamentals, and stick to the trading rules!

    Patience

    Patience is an important rule and can be broken down into 2 scenarios.

    Selling too early can be the first mistake. Sometimes we get tired of holding a stock that we feel is climbing too slowly and seek for more profitable opportunities elsewhere and we sell too early. Before selling, look back and consider what risks you took when you originally made the entry. What costs were involved (broker fees). Ask yourself what uncertainty was there in the technicals and fundamentals at the time of your entry compared to now. Sometimes we fail to consider the risks we took of making that entry and overlook the opportunity at maximizing profits. Consider a stock may be slowly building momentum, and may increase over time. Although it is not a bad idea to take profits at any time, sometimes we lose sight of the future. On the opposite side of the coin, holding a dying stock can also become a skeleton in the closet. This is one of the most important trading rules there is. Cut your losses! the first rule to trading stocks is not to lose, a well-timed entry will put you in an immediate green position. Study this rule, if you are sitting red you either hesitated and now you are holding a bag or you missed a crucial piece of the puzzle while you were in your research phase. Remember these trading rules and especially the one just mentioned.

    Buying on dips can be a great strategy but we also don't want to end up catching a falling knife meaning a dropping stock. A good example of this would be watching a stock price dramatically decline in value. A typical trader may feel the price may be oversold, and then watch their trading account also collapse after making a entry too soon. In most situations it may be best to wait and use technical indicators to determine if a bottom has been confirmed before taking an entry. Also always remember in most situations you can get out of a stock with liquidity in an instant. Don't allow the stress of a red stock to take control of your trading. This is one of the trading rules mentioned above. These trading rules need to be your bible, read them daily, make them part of your trading personality. Do not get trapped by the hype or emotions of the trade, always remember other traders will seem the most excited about a stock when they are trying to sell. Until you understand the psychology and these trading rules this can be a very confusing time.

    Runners

    Runners are stocks that run up in price. They can last anywhere from a few short minutes to several days, weeks or even years. The problem with trading them is that they are typically noticed by most people when the top is in. This is clearly a problem for those that decide to buy at the top. So what is the best strategy when trying to trade a Runner?

    Get in early. When a Runner is first observed, the biggest mistake to make is waiting too long. Too many times we watch them go by, and say 'well I better jump in before it's too late.' By that time it usually is, your order is filled and the stock starts to reverse. If you had gotten in early, you could have been out near the top. It is always better to put in a stop loss and break even then to hold and end up red. If you are trading without a day trading account this is ok! You will be allowed four round trip trades per week. If you get in and out of one and break even give it another try another day. Do not convince yourself that you have to always be in a stock! This one of the major trading rules and will be a samurai death in your trading career.

    Selling during a price run can also prove challenging. We all want to see higher prices, but the reality is that good times never last forever and eventually sellers come in and will take the price down. The key is to get out at the opportune time when the upward volume is still high. A trader can utilize various tools such as level 2 stock quotes which will give you an indication of the current supply and demand of the shares. When sellers begin to line up, clearly supply is outweighing demand and you can take your profits then. You can also use a combination of technical indicators or you can set a stop-loss. Whatever method you decide to use, determine it before you make your entry so you know when to take your exit. A professional trader will always buy his shares on the bid and sell them at the ask with smaller more consistent profits. We have all seen big 100% gainers, but would you rather lose 50% on 5 trades in a row in search of one 100% runner? One of the most important trading rules is that steady profit.

    Stop-Losses

    A stop-loss will lock in your prices, so when selling begins, you are taken out of your trade with a profit. Make sure the spread in your stop limit is large enough so that your order does not get skipped. This trading rule is important, if your stop limit order is skipped because only a market order is guaranteed you can find yourself in a panic position with no easy button. As one of the general trading rules you should set a stop on all orders immediately after a buy order is filled. Stop-Losses minimize risk, and the stock market is all about managing risks. This will lock in profits and minimize losses. Depending on the exchange you are trading on, you may not be allowed to set a stop-loss or trailing-stop order. For these instances you will need a 'Mental Stop' and is where you need to master your emotions once more and say to your-self. 'If the price falls to this level, I will exit my trade'. What we learned to do in these types of situations is to draw a line on the chart, once it hits that line you sell with no hesitation. No one is watching you; it is just you and the market. Have no fear. This is one of the most important trading rules. All too often we hold a losing trade and hope and pray that it will come back. We will be the first to tell you that we are all very religious, but the stock market is one of the few places God does not take part in. Praying won't help you here. This is rarely the case, and we are best of to follow our initial stop-loss trading rules.

    Bounce Plays

    Bounce plays typically occur in 2 ways.

    A stock that has just ran up very quickly in price a lot of speculation and buying comes into effect here. Eventually, selling begins to take over driving the price down creating a panic as traders scramble to get out of a falling stock. This occurs as a lot of people are in a panic, and are selling based on the fear emotion and a perfect time to be greedy. The stock will eventually reach a bottom and then bounce some nice gains. One of the most important trading rules is to buy the fear and sell the greed. Sell into the volume and buy on the bid into the fearful selling once you are sure a bounce is coming into effect.

    A stock has been trading sideways for a number of days or weeks. Next a negative news release or panic selling/short selling triggers a panic, the stock begins to sell and again, same rules apply as above. Emotions come into play, for fear of losing everything if they don't sell, and the stock at some point is oversold. I personally am not interested in holding a stock trading sideways, one of the best trading rules is that quick consistent ins and outs ensure a green portfolio. This is just my trading strategy though, what it yours? How will you incorporate these trading rules into your own personal trading strategy?

    Learn From Your Mistakes

    Everyone wants to become a professional trader and make profits to become successful. The day you stop learning from you mistakes is the day you will diminish your profits and ultimate goals. In all likely hood you will make mistakes, don't be afraid to accept this as a reality as this one of the most important trading rules. Do not be afraid to make mistakes, accept them, learn from them, and grow as a trader. Make sure your mistakes do not cost you dearly, minimize your risk while learning these valuable mistakes. One of the best trading rules to be taught is to continue to grow without being taken out of the game and losing your trading account. These trading rules are simply guidelines to assist you in minimizing the costs of your mistakes and to help you ultimately avoid the detrimental ones. Live by these rules, formulate your own personal strategy, and take names!

    Become a Legendary Trader!

    Stop by our FREE Technical Analysis Chart School at the follow link: http://stocklegends.com/technical-trading/

    Don't Forget to subscribe to our email's and get future articles and videos right to your inbox.

    Author: Matt_Chart

    http://stocklegends.com/

    May 13 1:04 PM | Link | Comment!
Full index of posts »
Latest Followers
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.