Intraday Trading
For intraday traders, trend days can offer outsized rewards. For some styles of traders, much of the work of trading is focused on capturing trend days, and most of the profits for the month may come from one or two trend days, with most of the other days showing small
Podcast
Trading is hard, but it's even harder because our emotions so often work against us. In this episode, I look at some ideas for managing emotions and putting them to work for you, instead of against you. Here are the show notes: Every decision we make is a
General Comments
I wrote a post late last week on the value of admitting what we don't know. I made some arguments about the dangers of false confidence, and the errors we can make if we don't take the time to think deeply about the limits of our
General Comments
We live in a world where most of our basic needs are fulfilled; most of us have food and water, we have a sense of safety and security, a sense of community and belonging, and, most of us most of the time, can work on that oft-elusive "pursuit of
Breakout
I've been writing about this for quite a while, tweeting about it, pointing out the relative strength in smaller cap names, constructive sector flows, volatility compression that could support a strong trend thrust, and a number of other factors--US stock indexes are well set up for an upside
The Book
I want to take a few moments and share some information on the new little book I have released. First, it is exactly what the title says: it is a primer, or first steps, in applying quantitative tools to market data. If you have a rigorous quantitative background, there might
Podcast
In this episode: Tony C asks: How to tune out negativity and fear from the media? * Understand the nature of media-driven information: It's constant and emotionally charged. The media has leveled the playing field and made the world a better place, but we need to understand the information
Breakout
Group-think is a problem in markets; so many smart people look at the same (pretty limited) set of information, so it's easy to understand why many people come to similar conclusions. Sometimes, it pays to step back and get out of the noise and information flow, and to
General Comments
To trade or invest successfully, we have to think one step ahead of the market, but we have to discipline ourselves not to act early. We also must strike a balance between having a big picture perspective and being flexible as new information arrives--it helps to have a roadmap, but
Risk Management
Sometimes, the thing you're afraid of turns out to be not so bad. Slippage is one of those things: as system developers, we know it will eat into our backtested performance, as daytraders we know that bad slippage can make a winning trade a loss, and swing traders
Individual Traders
Most people think about where to get into and out of positions. Most traders know how important it is to follow their rules, and most traders are always working toward being more disciplined. These are important pieces of a successful investment strategy, and most traders work on these things. But
Breakout
I thought it might be useful to step back and take a look at gold from a much longer-term perspective. First, the monthly chart (difference back-adjusted continuous futures): The first thing we see on the long-term chart is a big pattern of up then down. Keep in mind, this is