They say there are no free lunches in the stock market, and that’s true. But the closest thing I have found to a free lunch is shorting of stocks that have unsupported spikes higher.   To start, I screen the universe of stocks for daily up moves of… Read More

They say there are no free lunches in the stock market, and that’s true. But the closest thing I have found to a free lunch is shorting of stocks that have unsupported spikes higher.   To start, I screen the universe of stocks for daily up moves of… Read More

Anyone who traded during the Internet bubble is not likely to soon forget it. Investors basically abandoned fundamentals, and any company with dot-com in its name would skyrocket on its IPO and often continue higher to even crazier valuations. There were actually companies that never earned a dollar… Read More

One of the best things about the stock market is the ability to earn money no matter which way it moves. While most investors are long biased, meaning they only earn profits if shares move higher, a small subset of investors called short sellers rejoice in falling prices.   The… Read More

One of the best things about the stock market is the ability to earn money no matter which way it moves. While most investors are long biased, meaning they only earn profits if shares move higher, a small subset of investors called short sellers rejoice in falling prices.   The… Read More

One of the most common stock-picking strategies is using chart patterns to identify potential investment candidates.  There is a virtually unlimited number of chart formations technical analysts can point to. Truth be told, most chart patterns are worthless when it comes to making trading decisions. In fact, they… Read More

Buying stocks that have fallen on hard times, or just out of Wall Street’s favor, is a time-honored way to capture outsized returns. Price does not always reflect the actual value of a company, and finding these disconnects is one key to successful stock picking.  There are several ways to… Read More

Natural resource exploration companies can be among the most volatile and lucrative stocks. Similar to small biotechs, investors are betting on the future success of these often tiny firms. Every bit of good news sends shares soaring, while negative news causes them to plummet.   I first learned of the… Read More

The most basic rule in short-term trading is to buy low and sell high. It is also one of the most misunderstood and difficult to implement. While it seems like an easy task in hindsight, trying to do so in real time is a different story.  Investors have developed various… Read More

Unlike many people, I enjoy driving. Whenever given the choice to fly or drive, I always choose to drive. Seeing the country from the highways and local roads is stimulating and often educational about the state of the economy.  Always being on the lookout for new investment opportunities, I recently… Read More

Unlike many people, I enjoy driving. Whenever given the choice to fly or drive, I always choose to drive. Seeing the country from the highways and local roads is stimulating and often educational about the state of the economy.  Always being on the lookout for new investment opportunities, I recently… Read More

One of my favorite techniques for pinpointing stocks ready to make big moves is what I call “follow the leader.” First, I take a look at business headlines and note the stocks that seem to be leading the news, making a list of three to four of these so-called “headline… Read More

There are very few price patterns in the stock market that repeat themselves with enough frequency and accuracy as to be consistently profitable. One of these truly profitable patterns happens again and again in stocks priced under $10.  This pattern is so accurate that I have a close friend who… Read More