Trading Strategies Articles
Covered Call Writing as a Supplemental Income Strategy
August 2026 by Alan Ellman
Selling call options can offer a third income stream when the strategy’s risks are understood.
August 2026 by Alan Ellman
Selling call options can offer a third income stream when the strategy’s risks are understood.
Navigating the Rise of Prediction Markets
May 2026 by Tudor Pop, Sam Levine
Participating in prediction markets should be regarded as speculative due to their binary outcomes, novel nature, evolving regulation, relatively high costs and low liquidity.
May 2026 by Tudor Pop, Sam Levine
Participating in prediction markets should be regarded as speculative due to their binary outcomes, novel nature, evolving regulation, relatively high costs and low liquidity.
Using New Highs and New Lows to Measure Market Breadth
April 2026 by John Bajkowski
The new highs/new lows indicator provides a simple yet powerful window into the market’s internal health.
April 2026 by John Bajkowski
The new highs/new lows indicator provides a simple yet powerful window into the market’s internal health.
How to Use Short Interest as a Market Sentiment Indicator
November 2025 by Charles Rotblut
Short interest reveals how defensively or complacently institutional investors are positioned.
November 2025 by Charles Rotblut
Short interest reveals how defensively or complacently institutional investors are positioned.
Seven Keys to Successful Trading and Active Investing
November 2025 by Raymond A. Rondeau
How to steer clear of the basic errors and pitfalls that have led many traders and active investors to fail.
November 2025 by Raymond A. Rondeau
How to steer clear of the basic errors and pitfalls that have led many traders and active investors to fail.
Looking Beyond Price Trends With the McClellan Oscillator
October 2025 by Wayne A. Thorp
The oscillator exposes whether market strength reflects broad-based buying or narrow leadership, a distinction that often determines whether rallies continue or reverse.
October 2025 by Wayne A. Thorp
The oscillator exposes whether market strength reflects broad-based buying or narrow leadership, a distinction that often determines whether rallies continue or reverse.
Making Sense of Sentiment Data
August 2025 by Jenna Brashear
Share your perspective and challenges when it comes to interpreting and applying sentiment data to your strategy.
August 2025 by Jenna Brashear
Share your perspective and challenges when it comes to interpreting and applying sentiment data to your strategy.
Using the Arms Index (TRIN) for Market Breadth Analysis
August 2025 by Wayne A. Thorp
The most reliable signals occur when extreme TRIN readings align with other technical indicators and happen during high-volume sessions.
August 2025 by Wayne A. Thorp
The most reliable signals occur when extreme TRIN readings align with other technical indicators and happen during high-volume sessions.
Active Investors Can Still Win in “Efficient” Markets
June 2024 by Brian Haughey
To achieve above-average returns, investors need to be better at interpreting information than the average investor.
June 2024 by Brian Haughey
To achieve above-average returns, investors need to be better at interpreting information than the average investor.
Using Volume and Conviction in Trend Analysis
May 2023 by Raymond A. Rondeau
When used properly, conviction can assist in evaluating a price move’s relevancy, trend strength and probable direction.
May 2023 by Raymond A. Rondeau
When used properly, conviction can assist in evaluating a price move’s relevancy, trend strength and probable direction.
Using a Covered Call Strategy to Generate Income
March 2023 by Brian Haughey,
A covered call strategy offers investors the chance to collect dividends, generate premium income, benefit from some price appreciation in bull markets and mitigate losses in a bear market.
March 2023 by Brian Haughey,
A covered call strategy offers investors the chance to collect dividends, generate premium income, benefit from some price appreciation in bull markets and mitigate losses in a bear market.
Technical Analysis for the Long-Term Investor
January 2023 by Jenna Brashear
Our Technical Analysis Community focuses on how a long-term, disciplined investor might use technical strategies and provides a space to share thoughts about technical concepts, services and resources.
January 2023 by Jenna Brashear
Our Technical Analysis Community focuses on how a long-term, disciplined investor might use technical strategies and provides a space to share thoughts about technical concepts, services and resources.
How to Buy, Sell and Store Cryptocurrency
August 2022 by Steven Ehrlich
A guide to the decision-making process when choosing a provider for trading cryptocurrency.
August 2022 by Steven Ehrlich
A guide to the decision-making process when choosing a provider for trading cryptocurrency.
Measuring Market Volatility Trends With the VIX
June 2022 by Brian Haughey
The power of the S&P 500 Volatility Index lies more in its relative, or comparative, level than in its absolute level.
June 2022 by Brian Haughey
The power of the S&P 500 Volatility Index lies more in its relative, or comparative, level than in its absolute level.
The Options for Investing in Cryptocurrency
July 2021 by Steven Ehrlich
The novel properties and unique intrinsic values of bitcoin and other digital assets are arguments for their inclusion within a modern diversified portfolio.
July 2021 by Steven Ehrlich
The novel properties and unique intrinsic values of bitcoin and other digital assets are arguments for their inclusion within a modern diversified portfolio.
Leveraged ETFs: Don’t Get Wiped Out by the Tail
August 2020 by Matthew Crouse
Think carefully before buying a leveraged investment product that might seem highly attractive based on historical performance. Two key negatives are volatility drag and tail risk.
August 2020 by Matthew Crouse
Think carefully before buying a leveraged investment product that might seem highly attractive based on historical performance. Two key negatives are volatility drag and tail risk.
The Virtues of Active Investing
March 2020 by Steve Reitmeister
The idea of being a more active stock investor boils down to honestly evaluating your portfolio and removing weaklings at the earliest possible date.
March 2020 by Steve Reitmeister
The idea of being a more active stock investor boils down to honestly evaluating your portfolio and removing weaklings at the earliest possible date.
A Quantitative Method for Asset Allocation
June 2018 by Joseph Harding
The prevailing valuation of stocks and the relative valuation of bonds can be used to adjust an allocation above or below its target.
June 2018 by Joseph Harding
The prevailing valuation of stocks and the relative valuation of bonds can be used to adjust an allocation above or below its target.
Missing the Market's Worst and Best Months
October 2017 by Adam Butler
The market’s best and worst months have been clustered together. A trend-following strategy can help investors avoid extreme volatility.
October 2017 by Adam Butler
The market’s best and worst months have been clustered together. A trend-following strategy can help investors avoid extreme volatility.
Leveraged ETFs: Multiplying by the Unknown
July 2017 by William J. Trainor
The returns realized by an investor will be below what these ETFs’ names suggest due to the decay in realized leverage over time.
July 2017 by William J. Trainor
The returns realized by an investor will be below what these ETFs’ names suggest due to the decay in realized leverage over time.
Rules for Drawing and Analyzing Trendlines
April 2017 by Jeffrey Weiss
Trendlines can offer insights even though they have an artistic element to them. Using bar and line charts can help in their analysis.
April 2017 by Jeffrey Weiss
Trendlines can offer insights even though they have an artistic element to them. Using bar and line charts can help in their analysis.
How to Harvest Losses While Maintaining the Position
November 2016 by Ben Branch
Tax swaps and options can be used to maintain exposure to an investment sold at a loss in order to realize the loss for tax purposes.
November 2016 by Ben Branch
Tax swaps and options can be used to maintain exposure to an investment sold at a loss in order to realize the loss for tax purposes.
Protecting Against a Price Drop: Puts Versus Stop Orders
March 2016 by Ryan McKeon
Put options limit the amount of potential downside, while stop orders (though costless) do not ensure a minimum price.
March 2016 by Ryan McKeon
Put options limit the amount of potential downside, while stop orders (though costless) do not ensure a minimum price.
Shorting: A Strategy for Profiting From Price Declines
March 2016 by Charles Rotblut, Greg Swenson
Stocks at risk of falling in price tend to be overpriced and have weakening price movement, growing balance sheets and declining margins.
March 2016 by Charles Rotblut, Greg Swenson
Stocks at risk of falling in price tend to be overpriced and have weakening price movement, growing balance sheets and declining margins.
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.
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.
“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.
July 2014 by Jack Schwager
Basing trading decisions on what feels emotionally satisfying often leads to the worst portfolio performance.
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.
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.
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.
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.
Assembling a Covered Call Portfolio on Dividend-Paying Stocks
June 2014 by Ben Branch
Dividend-paying stocks are attractive candidates for option writing since the goal of a covered call portfolio is to generate income.
June 2014 by Ben Branch
Dividend-paying stocks are attractive candidates for option writing since the goal of a covered call portfolio is to generate income.
To Trend or Not to Trend
January 2014 by Raymond A. 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.
January 2014 by Raymond A. 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.
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.
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.
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.
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.
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.
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.
Money From Momentum: Positive Feedback Can Drive Returns
May 2012 by Shelly X. Liang
Chasing performance can be a rational response by investors, since they are seeking profits, but there are limitations to following such strategies.
May 2012 by Shelly X. Liang
Chasing performance can be a rational response by investors, since they are seeking profits, but there are limitations to following such strategies.
Three Basic Candlestick Formations to Improve Your Timing
April 2012 by Michael C. Thomsett
Three candlestick formations—the abandoned baby, white soldiers and black crows, and the engulfing pattern—can signal changes in price trends.
April 2012 by Michael C. Thomsett
Three candlestick formations—the abandoned baby, white soldiers and black crows, and the engulfing pattern—can signal changes in price trends.
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.
October 2011 by Scott O'Neil
Successful investing requires a disciplined approach to stock selection, buying, selling and portfolio management.
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.
June 2011 by Michael Kahn
Charts can help you quickly identify the sectors, and stocks, benefiting from high levels of relative strength.
The Covered Call: An Income-Generating Options Strategy
August 2010 by Michael C. Thomsett
Writing covered calls can add extra income to a buy-and-hold strategy, but it limits profits on the underlying stock.
August 2010 by Michael C. Thomsett
Writing covered calls can add extra income to a buy-and-hold strategy, but it limits profits on the underlying stock.
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.
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.
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.
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.
The MACD: A Combo of Indicators for the Best of Both Worlds
January 2000 by Wayne A. Thorp
The moving average convergence/divergence, also known as the MACD stock indicator, helps investors evaluate whether the bullish or bearish movement in the share price is strengthening versus weakening.
January 2000 by Wayne A. Thorp
The moving average convergence/divergence, also known as the MACD stock indicator, helps investors evaluate whether the bullish or bearish movement in the share price is strengthening versus weakening.