I have been investing in and trading the stock market since about 1997. I have a BS degree in Biological Sciences with a minor in Chemistry, and an MS degree in Counseling. I have worked in the Pharmaceutical industry as a Sales Representative as well as running my own real estate development company.
I believe the key to success in the stock market and many other things in life, is to keep it simple and focus on becoming very proficient at just one or a few things. Because of this, I am mainly an index trader. I trade the S&P 500, Nasdaq, and Russell 2000 through index ETFs.
I have learned over the years that there is plenty of money to be made in just trading the indexes. I like the predictability and relative lower risk that the indexes generally offer. By trading the indexes, I don’t have to worry about an 10% intraday reversal in a stock for whatever reason or a 25% overnight gap down in another stock for a reason that I can’t control. It also allows me to focus on mastering just a few things.
Over the years, I have studied, used, and tested many market indicators and tools in my trading and have learned that some are useful and many are not. Through this, I have discovered there are a handful of very useful indicators, tools and methods that when used together, are very affective, such as the following.
- A 10 and 30 day SMA of the NYSE and Nasdaq Advancers and Decliners.
- McClellan Summation Index.
- TRIN and several moving averages of the TRIN.
- Track New highs and lows each day.
- Percentage of Advancing Volume vs. Total volume on a 10 Day and 30 day SMA.
- CBOE put/call ratios and ISEE ratios.