Oclaro, Inc. (NASDAQ:OCLR) has been in a clear uptrend since early July, supported by the rising 100-day EMA. On Friday, it had a nice move on the upside, closing above all major EMAs on heavy volume. Considering the strong momentum over the past week, I think that the 10 dollars range will be tested in coming sessions.
How many times have you wondered what might have been if you’d waited just a bit longer before selling a stock! You punch-in a sale and the price goes up another 5% within the day or you buy a stock when it’s on the rise but it begins to fall just as you get the ownership. Cursed your lack of patience, did you? Well don’t be too harsh yourself, it takes a while and some practice to develop “emotional intelligence”. Yes, Emotional Intelligence (EQ), as a buzzword, has been around for quite some time but the growth in it’s relevance in the investing parlance is relatively new.
Investors, most often, fall in one of the following categories: active investors and passive investors.
If you’re a passive investor, you’re likely to have a “buy and hold” strategy. It’s also likely that you will be invested mainly in index-based securities. It’s also likely that your money will be parked in a custom index with proportional securities weighted by their market cap. You will have some large-market-cap stocks in your portfolio and be reasonably diversified by sector and geos. Once you buy these securities, you will hold on to them for a long period of time, until you either need money for other things (so you take it out of your investments) or the market reaches a point where you feel you’ve accumulated reasonable returns.
Crunching ‘big data’ for trading signals is real and already happening. Very few of us have the time and skill to shift through mountains of data for nuggets of golden information. The average person will have to have some basic knowledge of how the stock market works and take control and actively manage his or her own portfolio. Applying algorithms to improve your trading is far more developed. The rise of computing power lets smart companies crunch ‘big data’ — billions of gigabytes of photos, tweets and other crowd-sourced info — to dig needles of price-sensitive news out of the haystack. We are now in the AG (After Google) age and with that access to information is only a search away.
With so much data and companies and with website offering free financial data on almost every publicly traded company we will present how to use 2 simple new age data points from big data to profit from the stock market and take control of your financial future.
There have been umpteen opinions on how margin trading can make or break people’s trading careers. While for some traders (typically with deep pockets), margin trading is a way of life, trading on margin has also been suicidal for many an amateur trader. The China stock market crash was the latest example of what over-leveraged margin trading can lead to – what with “grandmas, cab drivers, college kids using mobile apps for margin trading”!
As far as our US markets are concerned, a quick look through most brokers’ margin account rates reveals that everyone offers lending rate slabs basis the size of account you hold with them. No surprisingly, Continue Reading…
Successful traders likely have been familiar with the importance of trends in trading since a group of merchants gathered under a buttonwood tree in New York to trade stocks. Trend trading not only represents the potential for a big move and profit, but also the path of least resistance for price as an established trend is likely to continue.
Newton’s First Law of Physics states, “An object in motion tends to stay in motion with the same speed and in the same direction unless acted upon by an unbalanced force.” This is the compelling basis for trading trends as they are likely to continue unless acted upon by an outside force (such as disappointing earnings, a market panic, geopolitical events, etc.), and it’s the reason why some trends stay in place for years.
Getting into a trade is perhaps the toughest part about investing because of the level of research it takes. You get tips and suggestions from so many people, coming from so many directions that it’s difficult not to get utterly confused. And if you are an amateur at finance, there are dozens of “technical-sounding” terms about stocks that are not easy to wrap your head around.
There’s TV news coming from the likes of CNBC and Bloomberg with dozens of analysts constantly talking about their favourite bets. There are thousands of business and finance websites – most of them reporting the same popular news. There are umpteen newsletters and then there are hundreds of tip-giving services.
If you’re not using Twitter, LinkedIn and other social media when you invest, you’re making a mistake that could deprive you of potential profits. One big catalyst is that in 2013, the SEC [Securities and Exchange Commission] began allowing companies to use Facebook and Twitter to communicate information with investors. And they have been using social media as a way of releasing earnings information and significant corporate news.
Financial bloggers and analysts use Twitter to let people know what they’re thinking about stocks and news events. And there are cases where news breaks first for investors on social media. So social media can be a way of becoming aware of what’s happening in real time or before the news becomes stale.
But you know that already. No? Ok. Well, it started happening about 3 years ago when social media and other instant gratification tools, technologies and philosophies started having a noticeable impact on people’s attitude towards money. Spending, saving, planning and investing in that order. Over the last year-and-a-half, the millennials have begun to come-off age, from your perspective. From being the target of consumer brands selling food, fashion and lifestyle they are being actively pursued by money management brands, read apps and sites.
In the last of couple of years you might have noticed multiple instances of people (mostly, media) talking about traders and trading houses making winning stock market bets based on what they read on Twitter or some discussion forum. While cases like these are few and far between, it is certainly a reality that you “cannot follow the stock market enough“!
Traditionally, investors have depended on analyst opinion, who, in-turn, often base their reports on technical analysis. But off-late the unpredictability of the market has amplified because of the reduced time-to-market of stock moving news & information. While deep-pocketed institutional investors have started making significant investments in technology to stay ahead of the social information and analysis curve, smaller traders and retail investors need to find innovative ways getting their hands on similar information, fast enough.