How to Invest & Trade

These are our free guides on how to invest and trade various markets on different time frames. These guides include how-to’s, trading rules, various trading strategies, etc.

Remember, there is no absolute right or wrong when it comes to trading and investing. We can always become better traders and investors.

Stock market investing & trading for beginners

Here’s our guide on stock market investing and trading for beginners.

  1. Realistic expectations: “get rich quick” and “trading for an income”
  2. Why you should trade stocks

Introduction to trading and investing in stocks

  1. What are stocks? What is the stock market? What is a stock index?
  2. What is a broker? How do you actually buy and sell stocks?
  3. What determines a stock’s price
  4. Resources for beginners
  5. Individual stocks vs. sectors vs. indices
  6. Trading the index (through ETFs) is much easier than trading individual stocks
  7. Types of trades explained: long vs. short
  8. What is margin? Why should you avoid margin trading?
  9. Taxes on your trading and investing profits

Resources

  1. Stock market investing & trading for beginners
  2. Smart Money Index: what you should know about this sentiment indicator
  3. How much cash should you keep in your portfolio?
  4. How to calculate Bollinger Bands in Excel 
  5. Stock market seasonality
  6. What an inverted yield curve means for stocks, currencies, commodities, and real estate

Top how-to posts

  1. What is trend following: its advantages and disadvantages
  2. Jeremy Grantham’s old quarterly newsletters (archived)
  3. Warren Buffett’s investment and impact on silver from 1997 to 2006
  4. What are valuation indicators and which indicators are the best
  5. Why you should always look at 3 times frames and charts when trading
  6. Study: USD is rising. What this means for currencies and stocks
  7. Bear market investing strategies
  8. Stock market seasonality
  9. What is William O’Neill’s CAN SLIM strategy for picking stocks: its advantages and disadvantages
  10. Study: how is the bond market a leading indicator for the stock market
  11. How will the Santa Claus Rally impact the U.S. stock market: statistics
  12. Study: death crosses aren’t bearish for the stock market
  13. Common sentiment indicators
  14. Understanding ETF erosion & why it’s not a big problem for UPRO
  15. Study: what happens when a Death Cross has occurred for 8 months
  16. How bearish are “death crosses” and oil crashes for the stock market
  17. Which stock market sectors will outperform over the next few years
  18. How to create a trading/investment model
  19. Investment Grade Spreads: what they mean for stocks, and how to profit from them

Investing and trading rules

These posts include general rules for trading and investing that almost all traders and investors should adhere to, regardless of their strategy.

These rules aren’t meant to be absolute rules. They are more like “guidelines” that most traders and investors should strive to follow.

  1. Why long term investing is the way to go in the U.S. stock market
  2. The best stop loss for an investment or trade
  3. Why you should invest in index ETF’s instead of individual stocks
  4. The importance of reflection in trading and investing
  5. How much of your portfolio should be in cash reserves?
  6. The importance of risk:reward in trading
  7. What to do when you lose money trading or investing
  8. How to determine your position size for trading and investing
  9. How to take a profit: strategies for closing your position
  10. Don’t trade earnings reports
  11. Why traders and investors should not set an annual performance target
  12. Never trade on a gut feeling
  13. How to trade when you get conflicting signals
  14. Why it’s better to trade sector ETF’s instead of individual stocks
  15. Don’t trade against the long term trend
  16. Don’t try to catch the market’s exact tops and bottoms
  17. How to properly use the news for trading: don’t trade the news
  18. What is a bull market and how should you invest in one
  19. How to save time when trading or investing
  20. What are valuation indicators and which indicators are the best
  21. Why you should always use 3 different time frames and charts when trading
  22. Don’t diversify between markets. Diversify between trading strategies
  23. How to control your emotions when trading and investing
  24. What is a bear market. How you should trade or invest in one
  25. Bear market investing strategies
  26. Why a bear market is good for long term investors and traders
  27. Why you should always do your own trading and investment research first.
  28. Traders and investors should read a well-balanced list of news sources
  29. How to trade when the market is very volatile
  30. Why we use historical studies and market statistics to help us trade and invest
  31. How much cash should you keep in your portfolio?
  32. How to become a successful trader with a small account
  33. How to backtest a trading strategy
  34. Short term dips in the economic data don’t impact the stock market

Trading strategies

These posts look at specific trading strategies in detail. There is no one-size-fits all approach to trading. Each market needs its own strategy because the factors that drive each market are different.

  1. Don’t try a one-size-fits-all approach to trading and investing
  2. The pros and cons of basic trading strategies
  3. Why you should use both fundamental analysis and technical analysis when trading
  4. Advantages and disadvantages of contrarian trading
  5. How to be a contrarian trader
  6. Advantages and disadvantages of trend following
  7. Advantages and disadvantages of William O’Neill’s strategy for picking stocks
  8. What is day trading: its advantages and disadvantages
  9. How to choose the best trading strategy for you
  10. Best books for traders and investors
  11. How to trade a bear market in stocks
  12. Why you shouldn’t use sentiment indicators when trading
  13. Common sentiment indicators
  14. How the U.S. dollar impacts the stock market
  15. Bull market tops tend to be flat and roll over
  16. Investors should focus on the medium-long term instead of the short term
  17. Don’t short a bubble
  18. How to chase the market after you’ve missed a trade
  19. Be careful when using seasonality to trade
  20. How to trade with seasonality
  21. Do not use fractals when trading
  22. Be careful when using correlation to trade
  23. Always use the CLOSE price when trading stocks
  24. The tax benefits of investing vs trading
  25. Don’t use volume for trading
  26. A market that rallies on falling volume IS NOT bearish
  27. How to trade bear market rallies
  28. How to use the bond market as a leading indicator for the stock market
  29. Problem with the Smart Money Flow Index
  30. Study: Golden Cross is a good long term indicator for the stock market
  31. The 200 day moving average isn’t as useful as you think
  32. How to profit from a rise in High Yield Spreads (how to profit during a bear market for stocks)

Financial Products

  1. Understanding ETF erosion & why it’s not a big problem for UPRO
  2. When are options too cheap (mispriced)?
  3. Don’t trade too many asset classes at the same time
  4. How to choose the right financial product to trade or invest in
  5. Why you should trade leveraged ETFs

Other

  1. Jeremy Grantham’s old quarterly newsletters

Videos

  1. #1 reason why traders fail, and how you can avoid this mistake