Chart of the Day
As I mentioned in my social media posts, I’m travelling this week and next so I will be a bit slower to get posts out. (I think an interesting topic is “vacation” for a trader. I’m writing this from my private terrace in Rome, but I’ve also
Support / Resistance
Risk Management
Trade management is at least as important as trade entry, and maybe a lot more important. There are two main tools for trading management: profit targets and stops. From these two simple tools, complexities explode because there are many choices—where do we put them initially? Do we move them?
Breakout
Take a look at the chart below. We were looking to enter a short in gold (or silver), based on the long downtrend, and then a bounce that was likely setting up to be a bear flag. We also knew that there was reason to be cautious and to expect
Technical Patterns
In this video, I show you how to use an Excel spreadsheet and, in just a few minutes, get some basic answers about market tendencies and market stats.
Chart of the Day
Pot stocks are the new cryptocurrencies, at least in terms of volatility and bubble potential. Take a look at the chart of TLRY below. A few thoughts: * First, this chart is log-scaled. (One good reason to use log scaling instead of linear scaling is when there is a very large
General Comments
Trader Development
The new podcast is taking off--reviews and feedback have been outstanding, and I'm thinking maybe I underestimated the power of this format. It's a great way to really dig into topics in a personal way. Of course, you have to listen to a little rambling sometimes,
Market Math
In a previous post, I gave a look at my published swing trade record, with a title on the post of Trading is Hard! Let's revisit that concept, almost exactly a month later. The point of that post was that outcomes are "streakier" than we wish--we
Technical Patterns
Just a quick post here to point out a trending pattern that should be in your toolkit. Take a look at the chart of SEAS above, which shows a particularly powerful trending pattern I have called "slide along the bands". Characteristics of this type of trend are: * It
Pullback
So many of us get into trading for action and excitement. (That was one of the things that drew me to trading, years ago.) But what it takes to be successful is often the exact opposite--the patience and willingness to do nothing at all, until the time is right. We
Trader Development
Over the years, I've moved toward being increasingly skeptical and critical of trading ideas. I knew this was happening, even if it was not a deliberate choice, but a recent podcast I did make me question my reasons for being so skeptical, and reaffirmed the value of the