Joe Fahmy: Relative Strength Trading Webinar

Great educational (and free) TraderInterviews.com video webinar with Joe Fahmy on trading high relative strength stocks in healthy markets. 

Joe is one of my favorite trading follows on Twitter and we've also highlighted some of his blog posts and interviews here in the past. 

So with that introduction, you should know that I'm posting this video because I've learned a lot about the stock market and trading from Joe in recent months. You'll probably walk away from this webinar with some knowledge that you can use in your trading as well.

Fahmy offers a quick summary of his general trading philosophy at the start of the webinar, then quickly launches into a discussion of his relative strength concept. You'll hear Joe explain why he looks for growth stocks that are emerging as leaders when the overall indexes are bottoming or consolidating. He also offers a few keys to successful trading and ends with a solid Q&A session with the webinar group. 

Check it out, and be sure to follow Joe's blog and tweets at the links above.  

Related articles and posts: 

1. Trading psychology: interviews with Joe Fahmy & Phil Pearlman - Finance Trends. 

2. Kirk Report interview + Q&A with Joe Fahmy - The Next Big Move.

These are a few of my favorite blogs...

OK, I won't hum a few bars from Rodgers and Hammerstein, but I will get right into today's post. 

In Monday's wrap up of the AR blogger quiz, I mentioned that one of the desert island quiz questions asked us to name our favorite blog. The exact question was, "if you could only read one blog (not Abnormal Returns) which would it be?". 

If you read that post, you know that I picked Kent Thune's blog, The Financial Philosopher, as my desert island pick. What you may not have known is that I had a very hard time picking just one blog to read, and in fact named several blogs as favorites in my original response! 

So getting right to it, here are a few of my favorite, "must-read" blogs:

1. First off, if you haven't read The Financial Philosopher, I highly recommend it. 

Not only will you find the more recent posts a joy to read, but I think you'll also find that the archived material holds up very well and includes a great deal of original insight and wisdom not only on financial matters, but on life as well. I've learned a lot from Kent's blog and it's a great place to occasionally reflect and exchange ideas (in the comments section) with Kent and his readers.

2. You might have noticed some links to Joe Fahmy's trading blog in recent months, here and on Twitter. 

While Joe doesn't have as much time to update the blog as he used to, I still check in for his thoughts on the stock market and on trading. There are some great posts (and videos) on his stock selection methods and trading philosophy here. You'll also find some key interviews with pro traders like Joe's mentor, Mark Minervini.

3. The Tischendorf Letter is another great resource in the world of stock trading blogs. 

Not only does editor, Olivier Tischendorf combine technical analysis with macro and fundamental themes, he also serves up some great quotes and excerpts from his favorite trading books. Don't overlook his public chart lists and key interview posts as well.  

4. Last, but not least, is the excellent Mises Institute blog. 

A font of information and insight on economics and liberty, the Mises blog is also a gateway to the vast library of resources (ebooks, audio, and video presentations) found on the main Mises.org site. Keep this one bookmarked; you will need it (trust me). 

And of course, as a student of the markets and of writing, I'm always checking quality blogs whenever I can to get the best available info from my chosen filters. Please visit our blogroll ("Blogs") in the sidebar to find more of the excellent bloggers in our network. 

I learn something from all of these sources and I'm pleased to count some of them as my friends. Pay them a visit, read their posts, and if you like what they have to offer, subscribe and let them know!

Stockbee interview with Mark Minervini

Pradeep Bonde at Stockbee has posted an interview with "Market Wizard", Mark Minervini.

For those who don't already know, Mark is something of a present-day all-star stock trader and, more recently, a stock trading educator. In 2000, Jack Schwager profiled Mark in his book, Stock Market Wizards, thanks to his largely self-taught skill and the trading record he had amassed up to that point.

Here's an excerpt from Stockbee's interview with Mark:

[SB]: "You often say the individual investor/trader has a great advantage over the Professional manager. What gives the individual investor the edge?

[Mark Minervini]: The biggest advantage that the individual investor has is control. With today’s technology, most traders can have the same tools as a pro. However, the individual trader has a tremendous advantage over professionals like mutual fund managers, mainly because they have greater liquidity and speed. 

This enables the individual to be more concentrated in a smaller list of well-selected names at lower risk because the individual can utilize stop-loss protection with little or no slippage. The individual, with a faster response time, can be more patient and strike at only the most opportune moments, which is the best advantage of all.. " 

After reading Stockbee's interview, be sure to check out Joe Fahmy's interview with Minervini for additional insights into Minervini's trading philosophy and what Fahmy learned from working with him. Excellent stuff.

Update on the S&P 500 $SPX

This SPX daily chart should serve as an update to our February post, which highlighted a new weekly high in the S&P 500.

Since that time, we've seen some chop in the stock market as the SPX worked below, and back above, the magic line around 1,311. We saw an 85+ point rally off the March low near 1,250 on the S&P and have since sold off from the rally highs in early April.

Here's an updated view of the weekly S&P 500 chart:


As we enter the 1st quarter earnings season, I'd like to highlight two posts from Joe Fahmy and Olivier Tischendorf on the current state of the market.

As you'll note from their updates, neither trader is in a mood to put on new positions here. Rather, they remain in a patient "wait and see" mode as they gauge the strength of this market. Check out their thoughts in the links above.

Joe Fahmy interviews Market Wizard, Mark Minervini

Wanted to share this excellent video chat on trading and the stock market with you. Joe Fahmy interviews his trading mentor, Mark Minervini of Stock Market Wizards fame.

Mark and Joe both maintain a presence on Twitter and StockTwits, so it's been rather interesting to get a closer look at some of their thoughts on markets and trading through their real-time updates.

In this interview, Joe talks with Mark Minervini about his trading philosophy and the importance of blocking out meaningless distractions when focusing on one's trading strategy. This is a great discussion, and it serves as a very good learning opportunity for stock traders.

Check it out, and when you're done, take advantage of some of the other archived posts and trading videos on Joe Fahmy's excellent site.

Monday links: The Bernank, Macro view, & more

Came across some worthwhile links from the blogosphere and Twitter today, and thought I'd point you to 'em.

We've got some videos and posts on The Ben Bernank, a macro view of the economy and markets, interviews with Bruce Berkowitz and David Einhorn, and more for you in today's links.

1. Bear Mountain Bull wraps up some recent interviews and links on The Ben Bernank.

2. Abnormal Returns brings us 3 non-Bernanke videos, including interviews with investors Bruce Berkowitz and David Einhorn.

3. Catching up on the Macro view with Gregor Macdonald and the health of the stock market with Joe Fahmy.

Peruse what you like, leave the rest. Remember, our ability to process and retain information is finite, so focus on what's most important to you in your pursuit of market education and limit your exposure to extraneous "noise".

Thanks, as always, for stopping by.

Mid-day links and market news

Rounding up some of the more interesting news items and blog posts that I've come across this week. Set a spell and enjoy our mid-day linkfest.

1. Der Spiegel interviews rogue trader Jerome Kerviel: "I was merely a small cog in the machine".

2. John Paulson trims BofA stake, sells all Goldman Sachs shares.

3. David Tepper sold financials during his "everything will go up" speech on CNBC, but he was pretty honest about it, finds John Carney.

4. Huge Ireland linkfest and other news from Credit Writedowns.

5. Your StockTwits handle is the 21st century trading badge, writes Chicago Sean.

6. Derek Hernquist on the intersection of patience and speed, plus some wisdom from Dickson Watts.

7. If you follow me on Twitter and StockTwits, you probably know that Joe Fahmy (see blogroll) is one of my favorite stock traders to follow on the stream. Here's the most recent StockTwits TV ep. of The Next Big Move with Joe Fahmy. Always worth watching.

Thanks for stopping by. Reminder: you can keep up with our posts via RSS and follow all our real-time updates and links on the Finance Trends twitter feed and on StockTwits.

Trading and the Psychology of Investing: interviews with Phil Pearlman and Joe Fahmy

Wanted to draw your attention to a couple of insightful radio interviews with StockTwits stars Joe Fahmy and Phil Pearlman on the Your Money Matters program.

You may know Joe from his tweets on the StockTwits stream or from watching his "Next Big Move" program on StockTwits TV. He is one of my favorite stock traders to watch and learn from on the stream, so I was pleased to hear this interview with Joe on his stock trading methods and the insights he shares with all investors and traders.

Check out Joe's thoughts on diversification and portfolio concentration, and his ideas on risk management and the importance of cutting your losses. No matter what your timeframe and trading/investing style, you're bound to learn something of value here.

If you're a fan of Phil Pearlman's "Market Shrinkology" show, check out this recent discussion on the psychology of successful investing.

I'm listening to this one out now and finding some familiar themes from Phil's "Shrinkology" shows, spiced up with some new ideas on how investors and traders deal with failure and success. Dealing with confirmation bias, the psychology of markets, assessing your performance, and the importance of discipline and sticking to a plan are all up for discussion here.

You may want to save this link and come back to the interviews after market hours or when you have some time to really listen and soak up the insights shared here. Enjoy the talks, and be sure to check out Joe and Phil's blogs and tv shows if you haven't already. Great stuff.

Shout outs to my fellow bloggers

Just wanted to take the opportunity this week to thank some of our friends in the financial blogosphere for their link love and support in recent weeks and months.

It's great to exchange ideas with, and attract a few new readers from, other fine blogs in your particular circle or niche. So thanks to some of our old and new friends for their comments, feedback, and links back to Finance Trends posts.

Thank you (in no particular order):

Bear Mountain Bull, The Kirk Report, Controlled Greed, Daily Crux, Dollar Collapse, Fintag;

The Financial Physician, Financial Philosopher, TraderWise, Vix and More, NextTrade, BHC Investment , Best Minds Inc.;

The Coming Depression, Financial Armageddon, Investment Performance Guy, The Vantage Point, Prudent Investor, Pension Pulse, Laurence Hunt;

Matisse Capital, MoneyScience, Market Folly, eWallStreeter, Master of the Universe, Joe Fahmy, Aiki 14, Derek Hernquist;

Maoxian, Abnormal Returns, FT Alphaville, WSJ - The Source, Futures Mag, StockTwits U, everyone on Twitter and StockTwits, and to you, our readers!

Thanks as well to anyone I might have missed. It's been fun sharing links and perspectives on the markets with all of you.

We're going to do more to highlight excellent blogs and market commentary from some of our favorite bloggers in the coming months. Be sure to check in regularly and follow the insights in our new "Blogs" category label (see the post footer and our blog sidebar "Labels").

*Photo credit: True School Hip-Hop, MySpace (via Google Images).

Joe Fahmy on Stocktwits TV: cash for corrections

Catching up with the latest episode of "The Next Big Move" with Joe Fahmy on Stocktwits TV.

If you keep up with Joe on Twitter or through his blog, you probably know that he has been cautious on the stock market in recent weeks and sitting mostly in cash.

In this July 4th episode of his Stocktwits TV show, Fahmy outlines his reasons for why you'd want to wait for factors to line up in your favor before reentering the market on the long side, and why preserving your capital and confidence while you wait is paramount to success in trading the stock market.

Features of the week

Some Friday reading (and listening material) for you in our, "Features of the Week".

1. Medvedev says he'll make Russia a "dream" for foreigners - Bloomberg TV.

2. Russian President Medvedev's interview on BP, Euro, political instability - WSJ.

3. North America in the lead? ETF assets & money flow. - Derek Hernquist.

4. James Rickards on, "Why BP Will Not Survive" - King World News.

5. Looking for stocks making "The Next Big Move" - Joe Fahmy.

6. "Refusing to Be Counted": a conscientious objector to the census - Vijay Boyapati.

7. Interview with Jim Rickards on IMF, a global currency, and the economy - King World News.

Hope you enjoyed these articles, interviews, and video features. Have a nice, peaceful weekend and we'll see you next week!

Readings: derivatives, Greece, & a triple whammy

Here's what I'm reading this afternoon:

1. Triple whammy of trading costs, taxes, and inflation drags down returns on US stocks (with Bloomberg chart graphic).

2. Greece lifts a page from Citigroup's playbook - Jonathan Weil.

3. Barry Ritholtz' take on derivatives regulation.

4. Gregor Macdonald looks at oil consumption in the developing world and California.

5. Research models forecast peak oil at 79 mbpd in 2014 (HT: Chris Nelder).

6. 10 years after the dot com bubble and Nasdaq 5,000, Henry Blodget reflects.

7. Stock markets celebrate year of gains, but only Chile is above its 2007 peak.

8. Joe Fahmy feels the market wants to go higher from here.

Hope you find the articles worthwhile, we'll see you on Friday for more financial news and insight.

To short or not to short?

I'm reading some of the great stuff put out by the bloggers in the Stocktwits network and I wanted to share two great posts, from Joe Fahmy and Keith McCullough, on the pros and cons of short-selling.

The first post, by Joe Fahmy, is entitled, "Why I Hate Shorting Stocks". Here's an excerpt from Joe's lead in:

"When I called for a market correction in mid-January, I received several emails asking me why I don’t recommend short ideas. In my Introduction blog post, I talk about finding an investment philosophy that fits your personality…and quite simply, shorting is not for me.

The title of this article is not meant to offend anyone, as I never try to impose my trading style on anyone. I actually believe that shorting is a necessary part of the stock market and that short-covering can add stability to a correcting or “free-falling” market. Nevertheless, it doesn’t fit my personality and here are my reasons why: ..."

Joe is one of the most interesting and educational stock traders/bloggers I've followed on Stocktwits and Twitter. In this post, he has taken the time to lay out why, in his personal view, short-selling is not conducive to his personality and trading style.

As I noted in the comments section of his post, I think that even traders with considerable short-selling experience might benefit from his arguments. It's all about what works for you.

On the flipside, we have a post from Keith McCullough at the Hedgeye Blog which argues short-selling is a necessary component of risk management:

"If you want to be a warrior of risk management, you need to be able to survive the daily battles of short selling. This is not a blood sport, nor is it one that deserves the attention of your emotions. It’s a mathematical martial art that requires flexibility and laser-like focus.

Overall, I’m probably a better short seller and risk manager than I am long term investor. That’s probably because I have more experience in down markets than I have in up ones. I entered this daily battle of ‘don’t lose money’ at a hedge fund in the year 2000. The first 3 years of my ‘be right or be gone’ experience were in down markets. Call me biased, but the only business I trust owning for the long term is the one I am building with my own hands..."

There you have it. Two differing views on a long-debated subject of relevance for investors and speculators, each from professional traders sharing their thoughts on Twitter and their respective blogs. Hope you enjoy their thought-provoking posts!