email is going to all my Toolbox Members, and to the people who have
registered to receive occasional information about the Share Market.
(Any non-member who no longer wants to receive this material can simply
unsubscribe using the unsubscribe link at the bottom - or just Update
Your Profile to change your interests).
This month's focus below is on the topic of:
Trends - trend-spotting, uptrends, exploiting trends and more. Last month's focus was on Stop Loss.
For the benefit of all the new Toolbox Members this month,
useful information in the last 2 month's emails is available
to Members in the email archive (Toolbox password required).
this month's focus below we talk about Trends, because it is really a
basic concept that many people don't understand very well. If a
company's share price is "trending down", why would we buy the shares?
This is called capital destruction. Why not wait until the downtrend
has finished? Anyway, more details below...
Over the next few months, the topics of focus will include:
- Support and Resistance - How to leverage these
- Nicholas Darvas - his winning strategy in detail (author of the best-selling "How I Made $2,000,000 In The Stock Market").
- Chart patterns - triangles, double tops, megaphones, double bottoms, flags, wedges, and more.
- Candlestick patterns.
- Money and Risk Management.
Please read on....
This month's focus:
Trends and trend-spotting!
Up trend, down trend, no trend?
Trend-spotting! - How and why to identify a price trend,
and how to profit from it.
Go straight to the new free Trends and Trend-spotting web page
in the Share Market Toolbox.
Or you can read here first...
In the big wide world of investing and trading, there are literally thousands of different trading strategies that can be deployed. Many of these rely on the idea that "the trend is your friend".
That is, if you can spot a rising trend, and join the trend, then you
can ride the trend until it has finished. In many cases the investment
should be profitable. But for the unprofitable situations, provided we
use sound money and risk management, we should be able to keep our
losses small (see last month's email on Stop Loss for more details).
[For more information on strategies, see the following, some of which are reserved for Toolbox Members: eBook Articles listed in the Detailed Topic Index, and some eBook Articles on BullCharts listed in the BullCharts KnowledgeBase.]
You might not believe it, but one of the six tenets of Dow Theory
says basically that once a rising trend is in place, then it is likely
to stay in place. And it is in place until it is confirmed to have
ended. It is that simple. Yet so many people insist on investing in
shares (or other instruments) which are down-trending. It doesn't make
See some good basic information about Brainy's
"3Ways Rule" to help remind us of some key concepts.
Brush up on your knowledge of trend-spotting on the new Trends web page in the Share Market Toolbox.
That web page includes some great information, including several ways
to spot a trend. And it includes good examples and many links to eBook Articles.
Most of the material is restricted to Toolbox Members, but non-Members can easily gain access.
Robert, I hope you find this very useful.
eBook Articles - Key changes?
the last two years I have accumulated quite a collection of eBook
Articles on three subject areas - Share Trading/Investing, Technical
Analysis and BullCharts software (actually 380 pages of material in 98
articles). These Articles are invaluable for both new and experienced
investors and traders.
am now writing brief monthly notes in this email to highlight specific
Articles on targetted topics. I am also writing new Articles as
required, and updating existing ones as well. For more information
about the changes, see the December 2010 eNewsletter email in the eNews email Archive.
For more information see:
The new "front matter"
As of early January with the change in publishing approach for 2011, I significantly revised the Introduction Article and the Overview Article
for each of the three subject areas. If you haven't seen the revised
versions yet, then you might want to download the following updates.
And recently new Toolbox Members might want to read the Overview
Articles to help understand what sort of material is included within
the 100 or so published Articles that are available in the Toolbox.
- Share Trading / Investing:
Latest Tables of Contents pages
Don't forget to download the three latest Table of Contents pages at any time. Links to these 2-page PDF files are included in the Quick Links section at right. With no new Articles since January, they have not needed updating lately.
The Detailed Topic Index
is also available so that we can look up a list of keywords to find out
which published articles contain related information. See the link in
the Quick Links section at right.
if you have some sort of problem with accessing the Toolbox and any of
these Articles? Or maybe the Username and Password doesn't work. If
there is any problem at all, simply contact me by email or phone. The
best email address for this is: firstname.lastname@example.org
Occasionally emails disappear - the system thinks they are spam, or the
ISP might think they are spam. If I don't reply within a day or so,
please contact me by other email address or phone
There is nothing secret in this
email, so feel free to forward it to someone if you think they might
benefit from the information, or from being a Toolbox Member. The
easiest way to do this is to use the "Forward Email" link at the bottom.
am also confident that my Toolbox Members won't be sharing their
username and password with non-members. It is not fair that I spend all
this time preparing the materials, and then my Toolbox Members pay
money to have legitimate access, only to let some people pay nothing to
read and view the details.
feel free to email an individual Article to others as a sample; but if
they want online access to all the materials, it is pretty cheap, so
they should subscribe as a Toolbox Member. There is information about Toolbox Membership in the Quick Links section at right.
Happy to receive feedback, or suggestions for new content or improvements.
Until next month,
Happy investing or trading,
Robert B. Brain
(mobile: 0438 355 910)
ps: watch out for the sharks in the ocean!
I am always very happy to receive feedback about the Toolbox, and the articles and weapons therein.
Please feel free to contact me by email or phone.
How to contact - click here.