Why Is Trading Volume So Important?
Trading volume reflects overall market activity, indicating the sheer amount of buying and selling of securities. Here's why it's so important.
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Investing Lessons
Practicing Patience in Stock Investing
Most investors lack patience - the toughest thing to do in stock investing is nothing. But for long-term investors, patience pays.
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What Does Buy-on-Stop Mean?
A buy-on-stop is a trade order used to limit a loss or protect a profit. It's a buy order held until the market price hits the stop price.
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Earnings Season and How to Handle It
How should you play earnings season? There is no one, perfect way. But I'll highlight the good and bad of three different, realistic scenarios.
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Our Best Stock Market Timing Indicators
Cabot's proven Market Timing Indicators are called Cabot Trend Lines and Cabot Tides. Here's how each of them works.
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What Does Relative Performance Mean?
Relative performance (RP) measures how a stock is performing relative to a specific market or index. Using RP lines is a good way to gauge a stock's health.
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What is a Double Bottom Chart Pattern?
A double bottom chart pattern is a chart pattern used in technical stock analysis to describe the fall in price of a stock or index, followed by a rebound, then another drop to a level that's roughly similar to the original drop, and another...
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Options Trading Terminology
Options trading has its own vernacular. To get started trading options, it's important to familiarize yourself with the following terms.
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The 22 Best Investing Books to Get You Through This
We have a wonderful library of investing books here in the Cabot offices and refer to them very often in our advisories. Here are some of our favorites.
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Holding Great Growth Stocks
It sounds easy to sit and watch your stocks that are going up, but you may find holding great growth stocks harder than you think.
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How to Improve Your Investing Habits
Consider this list of 10 ideas to help improve your investing habits. Adopt one of them or all of them—find what works for you. I try to use all of them in my own investing.
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What Is Investment Leverage?
Investment leverage, which in investment terms is just a fancy word for "debt," can move worlds of money if used properly.
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All About the Technical Analysis of Stocks
Technical analysis of stock trends helps investors to determine how the markets, and their stocks in particular, are likely to behave in the days ahead.
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The Pros and Cons of Sector Investing
Sector investing can allow you to play a group of stocks that are hot, and avoid the ones that are tanking. But it's not as easy as it sounds.
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Cutting Stock Market Losses Short Before They Grow
Our method of cutting stock market losses short rests on a set of rules developed over 45 years of investment advisory experience. Here's how it works.
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Cabot’s Investing Techniques FAQs
Q: What does the Cabot Tides Market Timing Indicator tell us?
A: The Cabot Tides Market Timing Indicator is a technical indicator that uses five different market indexes to help us determine the overall intermediate-term direction of the stock market. The indexes are:
S&P NYSE...
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Advanced Technical Analysis
This page deals with topics discussed in advanced technical analysis. If you're new to technical analysis or need a refresher, click here.
Double Top
A double top occurs when a stock attempts to break out above a recent peak but fails. (Remember, that first peak resistance!)...
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Small-Cap Confidential FAQs
Q: How should I systematically use Cabot Small-Cap Confidential to invest? (Do I invest in every recommended stock, etc.?)
Tyler Laundon: For starters, it’s important to recognize that every investor is different. We all have different risk profiles, different amounts of capital to invest preferences...
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Value Investing FAQs
Q: What is your investment process and criteria for investments?
Roy Ward: I am a value investor. I look for high-quality companies that are undervalued, and companies with strong balance sheets and low price to earnings (P/E) ratios. I use the criteria spelled out the...
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Options Trading FAQs
Q: What is an option
Jacob Mintz: Before you read any further, make a cup of coffee. For the uninitiated, options can get complicated.
An option is a contract that gives its owner the right (but not the obligation) to purchase or sell an underlying at...
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