CCI Correction

Introduction – what is the CCI? Developed by Donald Lambert, the Commodity Channel Index (CCI) is a momentum oscillator that can be used to identify a new trend or warn of extreme conditions. This strategy uses weekly CCI to dictate the trading bias when it surges above +100 or plunges below -100, which are key levels noted by Lambert. Once the trading bias is set, daily CCI is used to generate trading signals when it reaches its extremes. Strategy Lambert’s trading guidelines for the Commodity Channel Index focused on movements…

MUTUAL FUNDS INVESTING

WHEN MUTUAL FUNDS ARE YOUR ONLY CHOICE I recently discussed the idea of diversifying within your 401(k) or other defined-contribution employer-sponsored retirement plan. In most of those plans, mutual funds are your only investment choices. Mutual funds were a good idea, for their time. They allowed small investors to have diversified portfolios. They offered professional management of the funds. That frees investors from having to do as much work to study their investment choices. There are now better choices, in the form of exchange-traded funds (ETFs), that do the job of mutual…

Start Investing Easily

How to Start Investing Easily With Just $100 Investing your money into the stock market and bonds isn’t something you do later; it’s something you start doing as early on in your life as possible. Why? To give your money the most amount of time to work for you. You see, if you save $100 in your sock drawer, 30 years from now when you go to check on it, you will still only have $100. Conversely, if you invest $100 in a mutual fund, even if you never made…

Trading Charts: Periods

TRADING CHARTS: COMMON CHARTING PERIODS There are four types of trading charts commonly used by investors: Monthly Charts Weekly Charts Daily Charts Intraday Charts The different chart types illustrate a few ways price movement is expressed over a period of time. Now we will reverse that and examine price movement over different periods of time. You will notice that your view of a particular market can change drastically only by switching to a different time horizon. Monthly Charts These are trading charts that illustrate the movement of price over a…