Psychology
Before I call it a day, I thought I'd share a few thoughts with you. For those of you finding this post later, US stocks broke down Thursday of last week from a long, extended range, and closed the week Friday with what might be charitably called a
Psychology
I’ve written and said many times before that simplicity is a good thing—if you have a methodology that is overly complex, there’s a pretty chance it won’t work. However, so many traders feel drawn to complexity—it feels right and good. Why is that? Why would
Pullback
Given the action in US stocks this week, I thought this might be a good time to share a few thoughts about the market. I hope to be able to show you a way to think about the market that will cut through all of the fear, hype, exaggeration, and
Individual Traders
In a recent blog post, I made the statement (borrowed from Jack Schwager), that you must have an edge to be successful in the marketplace, and, if you don't know what your edge is, you don't have one. This, of course, prompted the logical question from
Podcast
Today, a few thoughts on how your memory works and how it is structured. I spend some time talking about a system called Anki in this episode. I know many of you will think it sounds impractical, hard to learn, or like a waste of time, but give it a
Market Math
In my weekend research report I write for my clients, I shared a few thoughts on correlation. This is a timely topic--we may be entering a period of the market history where a lot of assets link together. This is a risk, as there's always the risk of
Readers Questions
I received a good question from Nick: In many of your writings as well as the most recent podcast, you have mentioned looking at charts prior to going to bed. Given that the stock market closes much earlier in the evening, can you please elaborate on some of the benefits
Individual Traders
We live in a "quick fix" world in which everyone is looking for "hacks" to solve and shortcut problems. The internet is filled with "you're doing it wrong" posts that purport to show you how to do everything from tying your shoes
Podcast
This episode picks up where we left off last week, and I share a technique for learning remembering anything you want to learn with nearly perfect recall. One thing is important: I go through an exercise in this episode in which I work through a list of words, associating images
Risk Management
Some trades are obviously simple on the surface: if we think the S&P 500 is going up, we buy the S&P 500. Yes, there are questions to be answered: how much? How do we know we are wrong? Where are we getting out if we'
Pullback
Effective trading patterns are usually simple. The more complicated an idea is, the more likely it is the result of trying to fit very random data (i.e., the market) into a preconceived mold. I think many of the patterns and ratios of traditional technical analysis are the result of
Podcast
Over the course of the next two or three podcasts, I want to share some tools and techniques I've been using to supercharge my learning. In my case, I've focused these tools on learning a spoken language (French), but these are powerful, raw techniques that you