Using a bearish Engulfing candle as a short entry point

Classic chart pattern. Strong climb up with bollinger band being penetrated three days in a row. The red candle inside the bollinger band was the first warning sign. that would have been an exit point. then another rally, and then a clear bearish engulfing candle. Dropped back to EMA-17, but the EMA cross where the green line finally crossed the pink was the death knell. The bearish engulfing candle would have been a good short entry point.

FFC Closed with 1.6% profit and $ 0.13dividend

Although I liked this longer term trend, FFC didn't reach my short term price target of $18.54, and technical indicators all show it to be weakening, so I exited with the monthly dividend and a small profit. It's post dividend, so may take a dive below the EMA 17(purple) and present a rentry opportunity.

Three Ways to Take Risk Out of the Stock Market

Using these three simple steps, you can reduce the risk in your stock picking plan:

1. Screen Your Picks. This might seem obvious, but patterns that look like they are developing into predictable trends do not always follow through. 

2. Get In. Get Out. Set realistic target exit prices for all stocks. Lock in high returns while the stock is high, and  get out before the market has a chance to change its mind. With Swing trades, this means taking profits from one part of the trend. As soon as the first pullback occurs, we get out and wait for a reentry point.

3. Set Tight Stop Losses. This step is absolutely critical to minimizing your risk in the stock market. If a sure-fire winner turns out to be a fizzled-out dud, your system needs to have a built-in, abandon-ship trigger. That is, you need to know when to cut your losses and move on to brighter prospects.

A stop-loss trigger around 3% is realistic for all but the most volatile stocks. So if a trade starts to go sour, you will almost never lose more than 3% of your investment.

These tips came from ChartAdvisor.com and were modified to suit the NeuroTrade trading strategy.

You and your money

Trading is not a way to save money. It's a way to use money to build wealth. Wealth is the possession of money, skills, knowledge and systems that allow you to create what you want and live how you want.

Trading is the process of anticipating changes in value, and taking action to participate in that change in value.

Trading is not about 

 sitting on the sidelines,

 watching your money

 at a distance. 

That's Investing.

Online trading uses money in a very active way. Your money and you are involved very intimately at many levels. As you skill in online trading grows, your relationship to your money will change.

Let me give you an example: One of my best ever trades yielded a 29% profit. OK, you say, that's pretty nice, kind of above the S&P, pretty good annual rate of return really. Oh, but I forgot to tell you something. That 29% profit was made in just one hour.

Now imagine how long it would take you to make 29% putting your money in a bank and watching the grow at 4% per year or whatever. Feel what it feels like to have your money grow 29% in just one hour.

Saving is the process of putting money aside in a safe place.
Saving is familiar to most people, it's hopefully a basic money skill that your parents taught you and you've done successfully or not so successfully throughout your life.

When we start trading our money, a lot of beliefs that you have about your money and what you do with it will start coming up.

If we do not address these beliefs and emotions, we are unlikely to grow as a trader

Watching this week BOOM long, FACE short

BOOM
Strong drop off after earnings drop. RSI-7 near lower 18, penetration today of lower Bollinger Band
Need to see how much further it drops, want to see RSI dropping to 10.

FACE
Surfing up upper bollinger band, but now trading inside. Nearing upper side of recent channel, RSI 77

NLY Quarterly Dividend paid 62c 13% p/a at current price

AGD Dividend paid 6c 6.7% pa at current price

New Chart colour scheme test