The Blue Collar Investor WeBlog

The stochastic oscillator is a momentum indicator that shows the location of the current closing price relative to the high-low range over a set number of periods, usually 14 trading days. Closing levels that are near the top of the range indicate accumulation or buying pressure while those near the bottom of the range indicate distribution [...]

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 One of the common flaws found in many of the studies of the covered call strategy is that they select only slightly out-of-the-money strike prices. Needless to say, a majority of covered call writers are also guilty of the same mistake. It is certainly understandable why one would lean to this strike as we ultimately [...]

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A gap is a break between prices on a chart that occurs when the price of a stock makes a sharp move up or down with no trading occurring in between. Gaps can be created by factors such as regular buying or selling pressure, earnings announcements, and changes in an analyst’s outlook or any other type of news [...]

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Technical analysis is as much an art as it is a science. No one parameter, by itself, will assist us in making our buy/sell decisions. But when you take all the indicators together, it paints a picture that is critical to maximizing our covered call success. One of the simplest and most reliable of these [...]

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In real estate investing, the concept of leveraged investing is well known and documented in such best-sellers as Robert G. Allen’s Nothing Down for the 2000s and Michael A. Lechter’s OPM (Other People’s Money). The idea of generating profit while using little or none of your own money down is enticing and exciting. It actually [...]

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