Stock Trading

A collection of our best articles and lessons on stock trading. Here you will learn the skills strategies and techniques of the day trader, swing trader, and position trader.

How to Draw Trendlines on Stock Charts Like a Boss

Drawing trendlines on stock charts is a powerful way to assess the direction of the market. Trendlines help you understand the trend direction and timeframe to set expectations for future market moves. 

Stock Order Types: Using Market, Limit & Trailing Stops in Trading

Limit, market, and stop limit orders, help ensure you get the best possible stock purchase price. Stop limit, stop market, and trailing stop orders help sell your stocks for profit or limit your risk.

Day & Swing Trading vs. Growth & Value Investing Explained.

Day and swing trading uses technical chart analysis to trade short-term price moves, whereas growth and value investing use long-term fundamental financial analysis. The tools and strategies used for these types of trading are completely different.

How Long Should You Hold A Stock? Research & Facts

According to my research, during a bull market, investors should hold a stock for between 50 and 300 days to allow profits to develop optimally. The ideal hold time for swing traders is 45 days for an average profit of 30%.

Avoid Equivolume & Use These 6 Proven Charts

Equivolume charts have lost their popularity over time due to poor performance in testing and weak data visualization. I demonstrate why equivolume is no longer in use and introduce six charts proven superior by data.

Swing Trading vs Day Trading: Tools & Strategy Differences

Swing Trading and Day Trading differ in the timeframe, strategy, tools, and leverage. Day traders trade intraday using leverage; swing traders hold positions for days or weeks. Swing traders use real-time news, patterns, and indicators to make decisions, whereas day traders typically look for volatility to enable price scalping.

How to Find & Trade the Highest Short Interest Stocks

Short interest is the total number of outstanding shares sold short. Our data suggests short-sell traders should look for a high short interest float over 6% and a short interest ratio (coverage) greater than 19 days to find highly profitable short squeeze scenarios.

15 Insights for Trading Real-time News Events

Trading real-time news events, the trader seeks to gather and interpret the financial newsfeed as quickly as possible to initiate short-term trades to take advantage of profitable situations.

13 Tactics to Improve Your Short Selling Strategy

The key tactics to improve your short selling strategy are: use fundamental and technical analysis, use the right charts, indicators, and proven bearish patterns. Finally, ensure proper risk management and use leverage wisely.

10 Step Guide to Create a Reliable Stock Trading Strategy

Creating a reliable stock trading strategy involves merging logic, expertise, experience, and data. A trader's approach to the market determines their success or failure.

KDJ Indicator Explained: Best Settings & Strategy Tested

The KDJ is a stochastic oscillating technical analysis indicator that helps traders predict price reversals. According to our research, the KDJ has a 63% success rate if configured correctly.

Weighted Moving Average (WMA) Explained & Reliability Tested

Our research reveals the WMA underperforms other moving averages with only a 7% win rate on a standard OHLC chart. However, using it on Heikin Ashi charts produces excellent results.

RSI Indicator Explained: Best Settings & Strategy Tested

The Relative Strength Index (RSI) is an oscillating momentum indicator that measures the speed and change of stock price movements. RSI uses a scale from 0 to 100 to indicate overbought or oversold conditions.

Heikin-Ashi Candles Explained & Reliablility Tested

Our research shows that Heikin-Ashi charts are better than candlesticks for maximizing returns in trading strategies. We backtested 360 years of data across 30 major, and our findings prove that Heikin-Ashi chart strategies outperform 60% of equities vs. a buy-and-hold strategy.

Elliott Wave Theory: Usage, Rules & Reliability Tested

Elliott Wave Theory is a scientifically unproven technical analysis indicator used to attempt to predict price movements in financial markets. I highly recommend avoiding this indicator.

Hammer Candlesticks Patterns Explained & Reliability Tested

According to 2,219 tested trades, a Hammer is extremely unreliable and unprofitable. It has a low % accuracy rate of 52.1%, resulting in a razor-thin 0.18% profit per trade.

Dragonfly Doji Explained: Is it Reliable? I Test It!

The Dragonfly Doji is a candlestick chart pattern that indicates an equilibrium between buyers and sellers after a day of trading volatility. Our 1,703 test trades prove it can be profitable under the right circumstances, but the margins are thin.

3 Top Momentum Indicators Explained & Tested

In technical analysis, momentum indicators help traders identify the strength and direction of a stock's price. We explain and test three popular momentum indicators for reliability.

Trading a Doji Candle Explained: I Backtest It For Reliability!

A Doji candlestick chart pattern indicates a battle between buyers and sellers, ending in equilibrium. The Doji marks a potential trend reversal. Is the Doji pattern profitable or accurate? Our evidence suggests its profitability is marginal.

Bearish Engulfing Candles Explained & Reliability Tested

Our research shows the Bearish Engulfing candle is an accurate and profitable pattern. Our 568 years of data reveals a 57% success rate and an average win of 3.7%.

Our Best Training & Strategies

Liberated Stock Trader Pro: Learn Stock Market Investing

Learn stock market investing with the complete online stock trading course by Barry D. Moore, a certified financial analyst from the International Federation of Technical Analysts (IFTA).

ETF Investing Strategy: MOSES Improves Performance & Lowers Risk

The MOSES ETF investing strategy is a powerful suite of indicators meticulously backtested over 100 years. Designed to empower you to outperform the market, it equips you with the tools to navigate major stock market crashes and unlock greater investing performance.

Our LST Strategy Beat the Stock Market’s S&P 500 By 102%...

Decades of research and testing unveiled the Liberated Stock Trader Beat the Market System. Our 9-year, backtested, and proven strategy targets 35 financially healthy high-growth stocks, producing a track record of beating the S&P 500 by 102%.

TradingView Review 2024: Tested by LiberatedStockTrader

Our testing shows TradingView is best for international stock, Fx, and Crypto traders. It's the ultimate all-rounder with a global community, heatmaps, broker integration, pattern recognition, backtesting, and screening.

Stock Rover Review 2024: Is It The Best Stock Screener?

Our testing shows Stock Rover is best for long-term dividend, value, and growth investors. Its exceptional features are in-depth screening of a 10-year financial database, research reports, and broker-integrated portfolio management.

Trade Ideas Review 2024: Holly AI Bot Tested by LiberatedStockTrader

Our in-depth testing shows Trade Ideas is the ultimate black box AI-powered day trading signal platform with built-in automated bot trading. Three automated Holly AI systems pinpoint trading signals for day traders.

TrendSpider Review: Big 2024 Updates! Is It Now The Best?

Our TrendSpider testing finds it is ideal for US traders wanting AI-automated charting, pattern recognition, and backtesting of stocks, indices, futures, and currencies.

Benzinga Pro Review 2024: Tested by LiberatedStockTrader

Our testing shows Benzinga Pro is best for US traders who want a high-speed, actionable, real-time news feed at 1/10th of the price of a Bloomberg terminal. I recommended Benzinga Pro for active day traders and investors who trade news events.

MetaStock Review 2024: Tested by LiberatedStockTrader

Our MetaStock review and test reveal an excellent platform for traders, with 300+ charts and indicators for stocks, ETFs, bonds & forex globally. Metastock has solid backtesting and forecasting, and Refinitiv/Xenith provides powerful real-time news and screening.