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Stock Market Chart Patterns: Channels

November 21st, 2012

Types of Channels

  • Horizontal
  • Ascending
  • Descending
  • They don't have to be symmetrical
  • You want to enter when the stock breaks the channel marker (either up or down)
  • You want to wait for volume confirmation
  • The longer the stock stays in a channel, the healthier it is

IPO Basics: What is an IPO (Intial Public Offering) Definition

November 19th, 2012

Do your research before investing in IPO stocks to avoid getting in at the wrong time.

IPO (Initial Public Offering)

  • The first time the stock is released to the public and is available for purchase

The Problem With IPOs

  • The stock market is based on future expected growth
  • IPOs need time to set up
  • Preferred shareholders typically sell their shares as soon as the IPO comes out, which causes the stock to go down
  • Sometimes preferred shareholders are required to hold their shares for 60-90 days, the stock can decrease at this time instead of dropping  initially.
  • As time go on, more shareholders can sell their stock. You need to read the find print to find out when this happens.
  • Let the charts set up, give them time and do not hurry
  • Don't jump into things too quickly, IPOs should be avoided initially
  • Understand why you are buying the stock. Don't just purchase it because it's a company you use (e.g. Zynga or Groupon)
  • A better time to get in is after the stock has decreased over a period of time and begins to go back up. You don't need to get in right away.


  • Facebook (FB)
  • Everyone expected FB to go way up, but it went very low because preferred shareholders sold their shares right away

What is a Stock Split and Why Do Stocks Split?

November 16th, 2012

Stock Splits Simplified

  • # of shares before split = 100 at $50/share
  • Split = 2/1
  • # of shares after split =  200 at $25/share
  • In order to own the same portion of the company, the stock price goes down to $25/share
  • 100 shares at $50/share = 200 shares at $25/share
  • The value is the same, only the share price changes
  • Splits can come in different denominations (e.g. 2/1, 3/1, 5/1, 3/2, etc.)

Why do Companies Do This?

  • To allow new investors to come in at a lower stock price
  • To re-balance their shares

Stock Market Daily Recap Nov 15, 2012

November 15th, 2012

The stock market today again dipped down. The last few weeks have not been the greatest for the stock market - today was no different. The Dow-30 dropped another -29 points. closing at 12,540. It was a pretty calm day in my opinion.

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Quick Thoughts on the Market Nov 14, 2012

November 14th, 2012

The market is looking tired. The different indexes are breaking down and looking weak. Keep an eye on it. Here are my thoughts as of 10.50 AM. Watch for lower prices or a change in action and sentiment. It takes time for charts and peoples mentality to set back up properly.

Stock Market Daily Recap Nov 14, 2012 – DJIA, QQQ, IWM, EEM, FB

November 14th, 2012

The Market and Indicies

The market today already was at the brink. After President Obama spoke today discussing taxes for the wealthy and other economic items, the stock market started to sell off. All though there were a few stocks that made some great pops, most of the stocks are pushing to the down side or are still at critical levels.

The Dow dropped over -185 points to close at 12,570. The SPX, EEM, IWM, QQQ have all broken their support levels. They may go back up to retest those new levels as resistance levels to see if they can go to the upper channel, but you can not deny that today they were broken, so probability they will stay in this lower level until things rebalance.

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Why Many People Believe Stock Trading is Like Gambling and Why It’s Not

November 14th, 2012

Many people believe that stock trading is like gambling. I even hear this from my mom who actually trades from time to time. Even she mentioned that stock trading is like gambling. The fact that they could be so far from the truth for a person who is more educated on the market or human psychology. Typically the people that say this, either hear of the bad stories, incur incredible losses, or to simply do not understand the markets. They could also be looking for someone or something to blame to make themselves feel better.

There is a recent post I did on my personal website about the things I study. Primarily most people think I study investing if they hit my website, others will say marketing if they visit, some may even think Business to Business or Internet SEO. The fact is I study one main topic and one main thing only. That is human behavior and psychology of peoples actions, reactions, and people interaction. Read more from my blog post here.

The financial view of why stock trading is not like gambling

One key principle to understand is in the casino if you walk in, place your bad on black or red, you lose all of your money. The same goes with the slot machine. Every now and then you win and get some money back but this is winning.

With the stock market when you place your bet on a certain stock or company, if the stock does not go in the direction you want to go you can sell it off and get a portion of your initial investment back whereas with the casino you would lose all of it if you did not choose the correct direction.

What makes the stock market much harder is that if you did choose the right direction when do you actually sell in cash in your chips? This is what many stock traders struggle with especially beginners.

The fundamental level of livestock trading is not like gambling

However there is a deeper core I think behind it. If you read my blog posts from my personal website, you already know the answer to this. The reason I believe stock trading is not random is that all of it is based on human behavior. Not just simple one person human behavior, but mass quantities and mass behavior. It has never been random, nor will it ever be random unless you are one of the few that cares to say that to make yourself feel better.

Stock Market Daily Recap Nov 13, 2012

November 13th, 2012

Video Recap:

Market In General

The market dipped on the open today, and slowly went back up hitting its peak at 11.00am. After that it continued its sell off. Start high early on and sell off to the end of the day. Bull markets start low and trend higher towards the end of the day. Basically sellers pushed things to the down side.

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I'm Sasha, an educational entrepreneur and a stock trader. In addition to running my own online businesses, I also enjoy trading stocks and helping the individual investor understand the stock market. Let me share with you some techniques & concepts that I used over the last 10+ years to give you that edge in the market. Learn More

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This website and content is for information purposes only as Rise2Learn, TradersFly, and Sasha Evdakov are NOT registered as a securities broker-dealer nor an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Rise2Learn, TradersFly, and Sasha Evdakov cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Rise2Learn, TradersFly, and Sasha Evdakov in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Rise2Learn, TradersFly, and Sasha Evdakov accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.