Recent content by Michael Carr

It’s normal to feel nervous in a market like this after all, the S&P 500 has fallen 17.1% since the start of the year. We’re in correction territory — a decline of more than 10%. And it has many people wondering if a bear market lies ahead. But just because these fears are normal, doesn’t mean...

Around the mid 2000's, I was drinking espresso in the lobby of the vice consulate of Italy in Denver, CO. That was what my friend called his living room — his wife’s diplomatic work was done from the house. Legally, I left the United States and entered Italian sovereign territory when I visited...

Warren Buffett once said that it’s good for investors to be “fearful when others are greedy, and greedy when others are fearful.” That’s great advice, but many investors struggle to quantify fear and greed. Some use data from surveys. Others evaluate the tone of the coverage in news stories...

Every successful trader learns to manage risk so they can avoid large losses like those that have crippled many Wall Street firms. In this article, we'll show how traders manage risk, identify the lessons we can learn from JPMorgan, and detail a way that technicians can duplicate the value at...

Trading systems are usually thought of as complex computer programs requiring massive amounts of data to calculate the best entry and exit parameters. But in trading, often the best solution is the simplest. In fact, one of the best known trading systems doesn't even require a computer. Read on...

In 1983, legendary commodity traders Richard Dennis and William Eckhardt held the turtle trading experiment to prove that anyone could be taught to trade. Using his own money and trading novices, how did the experiment fare? The Turtle Experiment By the early 1980s, Dennis was widely recognized...

Point-and-figure (P&F) charts have been a part of the technician's toolbox for more than a century. They were used by Charles Dow in the late 1800s and Victor deVilliers published the first detailed explanation of this technique in 1933 in his book, "The Point & Figure Method of Anticipating...

Moving averages (MA) are a popular trading tool. Unfortunately, they are prone to giving false signals in choppy markets. By applying an envelope to the moving average, some of these whipsaw trades can be avoided, and traders can increase their profits. What Is an Envelope? Moving averages are...

In the late 1950s, Nicolas Darvas was one half of the highest paid dance team in show business. He was in the middle of a world tour, dancing before sell-out crowds. At the very same time, he was on his way to becoming a long forgotten Wall Street legend, buying and selling stocks in his spare...