Learn Stock Market

As you learn about the stock market, you will discover two main approaches: fundamental analysis and technical analysis. Although both are valid and proven approaches, the primary focus on this website is technical analysis and the reading of charts. Once you learn the language of charts, you will have the skills necessary for growing compound profits over a lifetime.

I will teach you to use the fundamentals to enhance your technical analysis. Quarterly earnings reports, earnings guidance, analyst ratings, competition, product development, market share, market trends, and corporate leadership are all fundamental factors that drive supply and demand for a company’s stock. When you take my two week stock trading course, you will learn to see the truth behind these ever changing fundamentals, supply and demand.

Another distinction you will need to make is between trading and investing. Investors typically base their decisions on the fundamentals and will hold onto a position in spite of how the charts look. Traders on the other hand, rely heavily on charts to locate areas of supply and demand and use them to determine entries, stop losses, and targets. A trader will exit a position even when the fundamentals still seem good.

This site is about trading. Trading lends itself to precise money management rules and accurate performance tracking. Unless you get this part of the equation right, your trading results will be inconsistent and most likely unprofitable. There is no trading system in existence that can compensate for a lack of sound risk management.

The first two things you will learn in my trading course are how to read stock charts and how to identify market cycles. Below is a monthly chart of the SPY, which shows two major market cycles and the bullish phase of a third. As traders, we look for buying opportunities during this phase, even when contrary to fundamentals and geopolitical concerns.

Major Bull & Bear Market Cycles of SPY since 1996

There are trading systems and trading methods. A trading system is typically a set of parameters based upon relationships between price, volume, and derivatives of price and volume. For example: if the 20MA is above the 50 MA, buy all pullbacks and breakouts that occur on above average volume. This is a simple but effective trading system.

A trading method, on the other hand, is a system of systems requiring objective human intelligence to gather, coordinate, and evaluate information. Only the human mind can judge the quality of a trade based upon varied and diverse sources of technical, fundamental, and psychological information, at least for now.