Throughout the development of our stock market education website we have become aware about what the needs of people visiting the site are and we believe there are two types of users to the site: those that want hot stock picks and those who want Stock Market education.
Everyday Philip and I come into work and our day is planned around studying the stock market and potential opportunities for that day's trading. Not once does it cross our mind to take someone else's recommendation to buy or sell a stock because our analysis and trading plan will bear no relationship to some other trader's recommendations.
This is because our stock market education and the strategies we have learnt allow us to trade everyday based on our own plan and own education and not some other trader that is claiming this could be the next hot stock pick! Imagine if you put all your trust in this one recommendation, and the next day this so called hot stock picker falls off the face of the earth! How will you then identify the next hot stock pick!
We cannot stress enough that just having part of the stock market education that we publish to the site will help you understand the stock market from a professional point of view and subsequently help you to start making your own calls in the market. There is no harm in hearing some potential news surrounding a stock for you to then apply some of our stock market education to your investing strategy. But relying on some guy you have never met to give you 10 stocks a day is like playing roulette with your hard earned cash!
We believe that it is more beneficial to educate yourself in the workings of the stock market than being dependant on hot stock picks. Using our stock market education material will only help you with this. However, we believe that there is an obvious place in the market for hot stock picks, it's just the way in which you actually use these recommendations in your trading strategy that matter.
Overbought Education Video
Today's Market Overview
We consider the SP-500 to be over bought and Philip explains our process behind what we do and how to trade these market conditions. For example analysing the top of the channel, support resistance areas are not really looking to counter trend the overall market condition but instead potentially scalp trading with correct position sizes.
Gold
After some quick technical analysis on Gold we identify that it is showing some divergence on the hourly chart and is relatively weak compared to the market. Philip talks about why he would have traded SP-500 rather than Gold even though Gold has gone up from where Philip identified the reversal into phase 2.
Silver
Silver is relatively stronger than gold and was definitely the better of the two precious metals to trade if you were a precious metal trader and bullish.
Philip also does a recap on the stock ticker FFIV. He looks at how well it has done since pointing out the technical analysis some time ago and looks at the controlled pullback it's had. This is something he will be keeping an eye on today.
If you have any questions relating to this market update or wish for us to talk about a trading subject that you're interested in, please don't hesitate to contact us.