Articles

ETF Stop Loss Equals Big Risk This equation might seem backward at first. Suppose that you use a stop-loss market order on an ETF and that ETF temporarily trades at a steep discount to its net asset value (NAV). What’s going to happen? Your position is going to be sold when the ETF is offering a discount. You could use a stop-loss limit order and that way, your sale isn't triggered at the bottom. However, that’s still not going to be a good trade. You could also attempt to implement an arbitrage strategy, but this is complicated and would require liquidity, speed, and plenty of capital. There are also other order types that you can try, but they probably won't help much either. Most ETFs Track an Index. Let’s use SPDR S&P Retail ETF...

As the year winds down, it is the time where traders and advisors take stock of what the year has brought them and what they expect from the markets to come. We, too, shall look at the charts to see what they are predicting for the new year. This has not been an easy year for investors. As of the date I am writing this article, the S&P 500 index is trading at nearly the same level as it started the year. Buy and hold investors are either flat or more likely negative for the year due to fees. For those without the proper knowledge, this has been a lost year because many investments were flat, and you lost an entire year of your investing life. However, with the right knowledge and strategy, this was an excellent market to profit from...

Breakouts of long bases on strong volume are frequent harbingers of continued price appreciation. Another harbinger, after the initial up-leg, is a low-volume, orderly pullback towards support. Kendle International (KNDL) An analysis of Kendle International's chart illustrates this strategy. As the daily chart indicates, Kendle in February 2005 broke out of a base pattern that extended back almost two years. Some traders, who missed entering early, may have given up on the stock when it doubled by late June, but a closer look at the chart shows why it had more room to move. Kendle's pullbacks were orderly, coming on lower volume and holding near its moving averages, a key sign of more upside to come. Only once did its pullback break...