For companies in the Biotech or Pharmaceutical groups, big price movements can happen at any time.  Knowing when these times are likely to occur can be rewarding for us, or save us from unforgiving losses. These companies will typically be working on new drugs or procedures that can have a big impact on the bottom line of the company.  Companies may go through different phases or trials for these potential new drugs or procedures, with each trial completion potentially causing a big move.  Eventually, FDA approval is sought in order […]

Economic reports have the ability to cause significant moves in currencies we may be trading. No matter what we may think might happen to our trades based on fundamental and/or technical analysis, NEWS can trump all. It is important for us to be aware of any potential news that could alter the trades that we are in, or trades that we are considering. Numerous sites have economic calendars that you can receive information about upcoming economic reports. The calendar from FXStreet, http://www.fxstreet.com/economic-calendar, has a calendar with filter capabilities. In the […]

Pivot points are another tool or indicator that can be used to help in trading. They are used to identify potential levels of support or resistance. Pivot points are considered to be a leading indicator. As with all indicators, it’s best to use it along with other indications to give a better idea of how we should interpret what is likely to happen. Using the charts provided by http://stockcharts.com , pivot points can be accessed from the Overlays section below the chart. Pivot points are calculated based on the high, […]

The Covered Call strategy is considered an income producing strategy. It is a way to potentially generate income on a monthly basis. Typically investors, who are looking for income, will buy dividend paying stocks. The problem with dividend paying stock is that you will typically be receiving dividend payouts that generate a 2-5% return per year. With covered calls, you can generate that same return or better each month. A drawback for covered calls is that you need to have enough funds to buy a minimum of 100 shares of […]