Technical Patterns
Today’s question comes from Mohammad, but the question emerged over the course of a more extensive discussion, with other people contributing, clarifying, and confusing! Here’s the question, paraphrased: If we trade “price action” can we and should we use indicators? This is an old question. I first remember
Trader Development
Here’s the first in a series of posts answering reader’s questions. Bob asks: Adam, question for ya if thats alright… I was noticing on part of your free course it was referring to writing down closing prices of a few select financial instruments each day… what is the
Pullback
I have found, over the years, solid results from trading a handful of patterns put in the proper context. Perhaps the most useful of those patterns in the pullback, which is simply a pause in an ongoing trend. Of course, how well you do trading pullbacks will depend on a
Psychology
Many traders struggle with making impulsive trades. For some reason, we can create the best and most carefully crafted trading plan, review the patterns we intend to trade, and resolve ourselves to doing everything correctly—but then we discover that half the trades we execute don’t fit into the
Anti
Trader Development
As I’ve been working on the new book, one of the themes that keeps coming up is all the different ways that people make money in the markets. We often think of some of the big, basic divisions; we might say “I’m a fundamental investor” or “I trade
Support / Resistance
General Comments
Last week, I officially started writing my next book, and I want to take a few moments to share some news with you. This book is being written to fill a need I see in the trading literature: a solid, comprehensive-yet-accessible, beginner's book for both trading and investing.
Climax
A quick lesson on trendlines and what they can tell us about market dynamics. Take a look at a fairly long-term chart of the Dow Jones Industrial Average (below) with trendlines doing back to the low in early 2016. First, notice the light little trendline that ends in late 2016.
Market Math
As I was wrapping up a Friday afternoon and getting ready to go play outside, I saw a post in a Facebook group where a guy asked what was up with the market because this was a rare day on which the market was down, and so was the VIX.
Trader Development
My recent blog generated more concern and controversy in my inbox than anything I’ve done in recent memory. Most of the messages I received were extremely well-intentioned, but, at least in my opinion, also misguided. I think this points to some fundamental principles behind mastery and hard work. Let
Individual Traders
I’ve been thinking a lot about failure recently, and I wanted to share a few of those thoughts with you today. It’s a little glib to simply say “failure isn’t bad” and “don’t be afraid of failure.” Failure is no fun, and, in some pursuits (skydiving?