Trading Strategies Articles

A Comprehensive Approach to Covered Call Writing

January 2015 by Alan Ellman
Focus first on stock or ETF selection, option selection and position management, instead of on dividend capture and tax avoidance strategies. Read more »

“Market Wizards” Advice: Doing the Uncomfortable Thing

July 2014 by Jack Schwager
Basing trading decisions on what feels emotionally satisfying often leads to the worst portfolio performance. Read more »

Managing a Portfolio of Covered Calls

July 2014 by Ben Branch
As a covered call nears expiration, the option writer can let his stock be called, allow the option to expire worthless or chose to close his position. Read more »

Analyzing the AAII Sentiment Survey Without Hindsight

June 2014 by Charles Rotblut
Based on the values that existed at past periods of time, above-market returns occurred after unusually high levels of neutral and low levels of bullish sentiment. Read more »

Assembling a Covered Call Portfolio on Dividend-Paying Stocks

June 2014 by Ben Branch
Dividend-paying stocks are attractive option writing candidates since the goal of a covered call portfolio is to generate income. Read more »

To Trend or Not to Trend

January 2014 by Ray Rondeau
Price action is related to and influenced by the technical landscape of the charts, but looking at additional factors, including the fundamentals, can provide added insight. Read more »

Knowing When It’s Time to Sell

July 2013 by Michael Kahn
Charts can help investors determine when it is time to sell by showing whether a stock’s price has fallen below its recent trend of rising prices. Read more »

Is the AAII Sentiment Survey a Contrarian Indicator?

June 2013 by Charles Rotblut
Both optimism and pessimism have had periods where they have stayed at high levels; low levels of optimism have had the highest correlation with market reversals. Read more »

Charles Dow’s Theory Still Valid for the 21st Century

September 2012 by Jack Schannep
Dow Theory relies on both the Dow Jones industrial average and the Dow Jones transportation average to determine whether a true market trend exists. Read more »

Money From Momentum: Positive Feedback Can Drive Returns

May 2012 by Shelly Liang
Chasing performance can be a rational response by investors, since they are seeking profits, but there are limitations to following such strategies. Read more »

Three Basic Candlestick Formations to Improve Your Timing

April 2012 by Michael Thomsett
Three candlestick formations—the abandoned baby, white soldiers and black crows, and the engulfing pattern—can signal changes in price trends. Read more »

Rules-Based Investing Essential for Stock Investors

October 2011 by Scott O'Neil
Successful investing requires a disciplined approach to stock selection, buying, selling and portfolio management. Read more »

Picking the Right Stocks Using Charts

June 2011 by Michael Kahn
Charts can help you quickly identify the sectors, and stocks, benefiting from high levels of relative strength. Read more »

The Covered Call: An Income-Generating Options Strategy

August 2010 by Michael Thomsett
Writing covered calls can add extra income to a buy-and-hold strategy, but it limits profits on the underlying stock. Read more »

Using Sell Signals to Improve Results

June 2010 by Kate Stalter
Cutting losses, protecting gains and looking for sell signals in individual stocks can make a big difference in investing results. Read more »

Why Technical Analysis Matters

April 2010 by Michael Kahn
Chart watching can help investors make better decisions. A five-step process can take a stock from an idea to a decision to buy or sell. Read more »