Trading Tips Blog

On average, the stock market returns about 10 percent annually before inflation. While individual stocks can vary wildly, that beats the average returns against bonds or other asset classes. That’s especially true with annual interest rates back at zero percent. But here’s the beauty of that average return: If you keep your profits in the stock market, you can grow your wealth far faster than even that 10 percent figure. Why? Thanks to the power of compounding your initial investment, and with ...
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As you consider the companies that dominate the market cap of the major market gauges, you may be wondering which companies are the titans of the future. While the following list likely doesn’t represent that type of life-changing potential, each of the seven companies represented have disruptive technology or concepts that are suited for a post-COVID world and the revenue and earnings expectations reflect that opportunity. According to Wikipedia, disruptive innovation “is an innovation that creates a new market and ...
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Gap Inc (NYSE: GPS) finished 7.42% higher on Monday as the stock is approaching earnings this week on August 27 after the market close. With such a bullish move ahead of an uncertain announcement, it appears that traders are looking forward to an earnings beat and upgraded guidance. Looking at the expected price move from the options market and Monday’s activity, the stock appears to be setting up for a dramatic move. With earnings coming up, it’s an important time ...
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Kodiak Sciences Inc (NASDAQ: KOD) saw its first significant insider transaction since March 18 last week. The transaction comes by a 10% owner, which is a good indication that they’re expecting the price to rise. The last purchase of consequence came near the March low before the stock went on a major run. After consolidating since mid-July the price finally broke out on Monday on increased volume. The breakout occurred two weeks after an earnings announcement that beat analyst expectations ...
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La Jolla Pharmaceutical Company (NASDAQ: LJPC) hasn’t exactly been a stellar performer over the past three years. Over that period of time, the price has gone from around $40 to as low as $2.50. After two separate rallies off of this level, the price finds it back at the same point with Friday’s close of $3.84. As the price is stabilizing at this level, one director and 10% owner just added a significant amount to his holdings. The last earnings ...
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With the market at all-time highs and so many stocks overbought, it makes you want to identify the less-loved companies that are showing potential. The concept is finding companies that are considered oversold but also have a reasonable fundamental reason for moving higher. The following five companies are significantly oversold in the near-term but have stable earnings expectations and room to run higher. The companies listed are trading at or below their four ATR Keltner Channel, which is achieved when the ...
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It’s been an incredible run for Plug Power Inc (NASDAQ: PLUG) as the price has gone from $4 to over $14 in a two-month period. When this happens, it makes you wonder when the sellers will start to materialize, and the trend will correct. Corrections come in different forms and the previous correction in July saw extraordinarily little pullback. As the price wavered on Friday, option bears began to buy puts looking for more downside. After trading mostly between $3 ...
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Absolutely! The stock market can be volatile, even dangerous. But used correctly, it’s a powerful wealth-building tool that has stood the test of time, including global depressions, wild fluctuations in interest rates, and even world wars. Those who use this tool properly, even following just a few simple guidelines, can build massive amounts of wealth.  What it really takes is an understanding of the common sense and patience involved to make those returns happen. Let’s take a look in detail about how that ...
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