Always be sure to analyze the underlying business before purchasing a stock to get a sense of the company’s competitive position and valuation. The potential for high returns does come with greater risk, however. Small companies may not be profitable and may have to rely on outside funding to sustain their operations. Hence, those shareholders are “preferred” over common stockholders. But not all stocks are the same, and they don’t all offer the same perks. They may trade under different tickers, such as GOOGL and GOOG, and have different voting rights. That’s why having some cursory knowledge of different types …

At the request of the readers, a video lesson has been recorded where this trading system was dismantled and considered in its most classic version. Using a factor of 4 will require us to downgrade our charts to the 8-hours time frame. As you can probably tell, the Alex Elder trading rules involve the use of multi-timeframe analysis. The second Screen applies technical indicators to identify retracements against the trading bias established earlier. On the same note, oscillators work when the market is range-bound, and tend to give false signals when the market is trading. Once the trader has decided …