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...
Read More
Trading volume reflects overall market activity, indicating the sheer amount of buying and selling of securities. Here's why it's so important.
Read More
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.
Read More
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.
Read More
Options trading has its own vernacular. To get started trading options, it's important to familiarize yourself with the following terms.
Read More
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.
Read More
Cabot's proven Market Timing Indicators are Cabot Trend Lines, Cabot Tides and Two-Second Indicator. Here's how each of them works.
Read More
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.
Read More
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...
Read More
August 15, 2017 | by Paul Goodwin
I have just three points to make about investing books.
First, don't expect an investing book to change your work life or your investing life.
You got to be the investor you are through a lifetime of experience, and one...
Read More
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.
Read More
Investment leverage, which in investment terms is just a fancy word for "debt," can move worlds of money if used properly.
Read More
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!)...
Read More
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...
Read More
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...
Read More
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...
Read More
What are the best practices of growth investors?
Here are some keys to becoming a successful growth stock investor:
1. Work to identify truly great growth companies
2. Cut your losses short
3. Let your winners run
4. Hold stocks of good companies long term
5. Avoid buying on avoid...
Read More
Investment risk is a fact of life. Without risk, there would be no reward. The important thing is to know how to plan for it.
Since I was a sophomore in college, my passion has been the stock market—learning its history, finding what methods and...
Read More
Q: What is your position on averaging up as a stock advances?
A: If I had a choice with any stock, I'd prefer to average up, but each stock has its own personality. The stock you mentioned has proceeded forward in price only after consolidation periods. said...
Read More
High frequency trading is the implementation of online stock trading strategies noted for extremely quick holdings, to exploit short-term market inefficiencies.
Read More
