Support and resistance are two of the most powerful technical indicators on the market. Without watching either, you may just buy or sell at the wrong time. Support, for example, represents the moment when buying begins to overwhelm selling and prices begin to bounce back. Resistance happens when selling begins to overwhelm buying and prices begin … Continue reading Small Cap Trading: Two of the Most Powerful Technical Indicators
If you pull a rubber band too far, what happens? It snaps back, right? The same thing happens with stocks when they become too overbought or oversold. And if we can position ourselves for the exact moment the “snap back” happens, we make money. And it’s actually quite easy to spot with three key technical … Continue reading Russell 2000: How to Spot a Pivot up to 80% of the Time
Every year, investors ask if small cap stocks can be traded like the Dogs of the Dow. With the Dogs of the Dow, you’re simply buying the highest yielding 10 Dow Jones stocks that fell out of favor, investing an equal amount in each, liquidating by January 1 of the following year, and repeating for … Continue reading Small Cap Strategy 101: The January Effect
When it comes to technical analysis, moving averages are essential. For example, for more than 20 years, I’ve relied on two specifically – the 50-day and the 200-day simply moving average. What I’m looking for are golden, and death crosses. Bullish Golden Cross For example, we can spot a bullish “golden cross” when the short-term moving … Continue reading Small Cap Death Cross: Why it’s Often a Buying Opportunity
It never hurts to think big with small cap stocks. Especially if those stocks offer dividends, even in times of market disarray. While former stock giants like General Electric (GE) lowered dividend payments to a penny, there are plenty of other ways to rake in the extra income from small cap dividends. Here are some … Continue reading Three Small Cap Stocks with Respectable Dividends
Anyone can invest in a stock. But it’s takes a disciplined person to invest well. So, the question then becomes, how? To begin, no matter your skill level, all investors must understand these three key principles: To succeed in the market, you must develop a healthy relationship with it. You cannot allow emotion to control … Continue reading What Every Investor Should Know Before Buying a Stock
The good news is the election volatility is now behind us. There’s no more talk of blue or red waves. The results are now in. The Democrats won back the House, Republicans still control the Senate. And while a split Congress may see nightmarish to some, it could fuel quite a market rally. At least, … Continue reading Election Day 2018: Potential Winners and Losers
One of the key ingredients of a well-diversified portfolio are small-cap stocks. Or, stocks that carry a market cap of between $300 million and $2 billion. That’s because they offer diversification, the potential for higher returns, and long-term performance. Reason No. 1 – Diversification Small cap stocks allow you to diversify your portfolio and lower … Continue reading Three Key Reasons to Diversify with Small Cap Stocks
It’s not about having the perfect strategy. It’s about the rule you abide by with each trade. One of the biggest issues facing all walks of traders is a severe lack of discipline and structure in stock buying habits. Many fail to use stop losses, or even protect gains with a simple trailing stop loss strategy. Others … Continue reading Small Cap Trading: Four Essential Technical Indicators to Understand
