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For stock traders, looking for key signals to enter a position during a momentum breakout is crucial, especially when price action starts to escape consolidation ranges and take out new highs.

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One of the things we frequently see with penny stocks is the "sympathy" trade. This usually involves 1 bellwether stock attracting the interest of day traders. Once that stock becomes "too hot" or reaches levels seen as "too high," retail traders tend to look for other stocks with similar traits.

One of the biggest mistakes a trader can make is holding a losing position overnight. Hope, like all other emotions, has no place in a disciplined trading.

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Dead cat bounces of major corporations going out of business can actually create great trading opportunities for those quick and aware enough to pounce on them.

Volatility is a trader's best friend, but how do they find opportunities to capitalize on? In this installment of the financial myth series, Michael McTague looks closer.

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