Identifying the development of a market top is a crucial skill for traders and investors alike. Understanding the signs and signals that precede a market top can help you protect your capital and even profit from a downturn via shorting or puts. In this article, we will break down the six key steps that typically characterize the formation of a market top, and what you can watch for.
The Second-Day Play - How To Trade This Momentum Setup
If you are trading momentum stocks on the first day only and then walking away, you may be leaving substantial profits on the table. It's a well-known fact that stocks with strong momentum can sustain their move for several days, and the best ones, often fueled by significant fundamental catalysts like an impressive earnings beat, can extend their runs for weeks. This realization poses a critical question: How can traders effectively seize these extended trade opportunities and maximize their potential gains?