How to Trade Stock Streaks - Exploring a Reversal in CCI Mar 02, 2021

The following is a brief exploration of whether or not to play for a reversal after a multiple day streak. In this case, CCI had a 7 day streak to the downside (close-to-close) on March 2, 2021.

...

Continue Reading...
Edges from Seasonality - Planning Trades Ahead of Time Mar 02, 2021

The following is supplemental to The Last Half-Hour of Power Show on Feb. 26 by Premarket Prep, which you can watch below:

 

Framework

Since Seasonality Data is known ahead of time:

  • Develop...
Continue Reading...
Paper Trading, its Perks and Drawbacks Nov 27, 2020

Paper trading has become a regular offering in the financial world with many brokers offering paper trading services to their customers. However, as a trader, you need to know what it is and how it...

Continue Reading...
How Pair Trading Works May 31, 2020

We recommend reading What is Pair Trading before the rest of this article.

 

We think of the combined stocks as a “unit”.  We can either be Long or Short the unit or the pair....

Continue Reading...
What is Pair Trading? May 26, 2020

The concept of pairs trading, or relationship-based trading, comes from Morgan Stanley, where a group of researchers first developed the strategy in the 1980s. Simply put, pairs trading requires...

Continue Reading...