ZoharCho

ZoharCho

Imagine that you are a Hedge-Fund manager, you have a lot of money to invest. You are looking to invest in AAPL for example. Let's assume for the debate, that you as a fund manager can buy any amount of stock that is traded that day. This assumption is made because we want the Anchored VWAP to represent our position line. Anchored VWAP = is a tool that you can...

ZoharCho

The GOOD: We have a volume pattern that looks right. See my educational post "a TIP about Volume Reading". We have a triangle-up pattern on going. Price already did most of the correction to the side for some time. We MIGHT (and this is a big might) have wallstreetbets context and hype which can drive the price further up. See attached post below. Price...

ZoharCho

In the movie, the big short Charlie Geller and Jamie Shipley took trades with options out of the money with low probability. This is an example of such trade, 100 options contract worth $6000 if SOS will run up again, this trade could make $60,000. If the price will move to $21, this trade could make $120,000 This also shows that options are leveraged, if you...

ZoharCho

Stocks can go to infinity on the long side, but they can go down 50% infinite amount of times on the short side. Never underestimate the power of the downtrend. Cheap can get a lot cheaper. Low can get a lot lower. Go with the trend, the market is always right.

ZoharCho

How to read volume in your stock: General concept: - You want to see volume increase on impulses and volume decrease on corrections Volume analysis: A: Price is moving up, volume is increasing - as should be. B: Price is correcting, volume is decreasing - as should be. C: Price is moving up, volume is increasing - as should be, BUT the large volume...

ZoharCho

The gap theory is short and simple. Not everything needs to be lengthy and laborious. "Everything should be simple as possible, but not any simpler" Break-Away Gap Once a new cycle has begun and you see a breakaway gap in the STARTING of a move, you get confirmation of this new cycle. HOLD. Run-Away Gap Once the trend is continuing for some time and...

ZoharCho

Small trading instruments can have many attractive qualities, let's go over them: Small equity needed: You don't need a lot of capital to buy them, they are cheaaaappp!!!! Whatever happens, your risk is limited: Your risk is limited to the capital you put in (if you buy...) , when you are new to trading, human mistakes happen, whatever mistake made or...

ZoharCho

There are a couple of reasons why to use automated trading, like better risk management, human error, easier to diversify, and Psychology In this post, the focus is on psychology. Here are some of the cognitive biases that affect trading: Loss aversion - the tendency to prefer avoiding losses to acquiring equivalent gains. It feels much worse losing $100...

ZoharCho

Buying the dip can be a very risky strategy, causing an increased risk to the trader if he averaged down. You can never know how DEEP the dip can keep dipping, and you might enter into a TRAP. I always recommend traders to enter with momentum and exit when the momentum is starting to reverse. This is what many legendary traders like : Jesse Livermore and...

ZoharCho

The chart is self-explanatory. Previous "Bear Market" for this stock was -61% ---> this is considered normal, for such a growth stock (Go check historical corrections of AAPL, and see that regardless of large percent corrections, the stock did new highs). If the price will go to $26 we would expect the price to hold that level and try to test for the high. As...

ZoharCho

Many traders think that buying a stock is like buying a shirt in the store, IT IS NOT! Buying a stock is like buying a PINEAPPLE, if you understand PINEAPPLES, you understand stocks. 1 - first you have the first sprouts of the pineapple, that came from a seed, this price is extremely cheap. 2 - then the plant grows, and you have a full plant with leaves....

ZoharCho

The average up strategy provides Huge wins, Small losses and Risk minimized. Use RANGE-CHART for this, so you could see the Buy setups more easily with less noise or time distortion. First You look for a buy setup, one that you believe that price should move rapidly from your starting buy point (you expect ab big relative move). Second You add up...

ZoharCho Updated 

In the chart, you see the out of the money call option on SLV, if you bought on Friday. Me (Zohar) and my brother (Hanan) had a huge debate about this trade . If we should enter or not. Each one has its personal view about this topic and Wallstreetbets analysis. Long story short if you are not familiar with the analysis: Wallstreetbets says that there is a...

ZoharCho

I see many traders consistently trying to fade the trend, but be careful. In this post, I will explain the psychological problem that can arise from it. Every time you get something that you want in life or that is pleasurable, you get positive reinforcement, and your brain says "I want more of that stuff" and then the brain says: "Keep doing what you are doing"...

ZoharCho

The technology sector is preparing to make a new high. Many stocks are after a consolidation period since September. We can clearly see that ADBE testing its highest high , so watch it. As always, diversify. If the flag pattern will follow through a big move is about to happen, one that worth risking on a trade. Previous pulse waves were relatively...

ZoharCho

Hello, Traders around the globe, Here is a reversal pattern of the Hull Moving Average. Stage #1: You want to see an acceleration of momentum = the blue crosses have spaces inside them. This stage is important because if you are doing day trade, you want to be sure that you are in a volatile environment. You don't want to be where the market is choppy with...

ZoharCho Updated 

AMD is in a confirmed uptrend (weekly) After 4 months of moving sideways and holding a major trendline. If it will continue up reward is 3 points of risk, if it will break the trendline, it will be possible to cut loss at half a risk point (risk to reward 1 to 6).

ZoharCho Updated 

Hello traders, I got a signal in my system. PLTR was trading sideways for some time. The implied volatility is down from 160% to ~100% In the 71 days, we have earnings. The stock is in a general trend up. I always diversify my portfolio never all in.