General Comments
This is the third, and last, post in a series of three posts that started by looking at the 10,000 hour fallacy and the importance of deliberate practice. Those posts were broad in scope, and some of you asked how to related them specifically to trading and financial markets.
Trader Development
This post is a followup to my recent post which looked at Malcolm Gladwell's 10,000 hour fallacy. That post focused on what is wrong with pop science soundbites. This post is different: today, I'm going to tell what you can do to work toward mastery--practical
Trader Development
Have you ever heard someone say they are "working toward their 10,000 hours?" I'm sure everyone reading this has heard of the "10,000 hour rule": the idea, drawn from Malcolm Gladwell's bestselling book Outliers, that it takes 10,000 hours
Pullback
It's easy to understand how there might be a pattern in the market that shows we have an edge or a reason to put on a trade. Maybe some combination of factors or patterns shows us that a market is more likely to go up over a certain
Chart of the Day
Here's a perspective on recent sector action with a longer-term context. I find movements on this type of chart can give good insight into flows and developing relative strength:
Market Math
We've had a very large decline in stocks this week. Depending on what index you use and how you measure, it's the biggest or one of the biggest in the past few years. The world is also tense with geopolitical concerns: economic numbers from major economies
Psychology
I got a good question in my inbox yesterday from a reader, Dave: Last month I made almost 2% (which is great), but this month I've already lost 5% (which is not so great). Every trade I have taken this month has beaten me silly. The losses in
Chart of the Day
Looking at day-to-day changes in markets on a volatility-adjusted basis can quickly show themes and stresses that we need to consider.
Trading tools
I've shared these screens for a while, and they will eventually be part of the new MarketLife project. Until we're live there, I'll keep sharing them here. Here is a link to today's screens: ML_Screens081017 And here is a "how
Trading tools
Psychology
Trading is great—you’ll have no boss, can work whenever you want, and make boatloads of money! (Or so the email I got from a MLM forex scammer this morning tells me…) While there might be a grain of truth in all of this, there’s a bigger truth
Pullback
Trading is a game of choices. Over time, we hope to make more good choices than bad. Sometimes, the choices are obvious: control your risk, take disciplined trades, be mindful of correlated risks, but other times the factors that separate good from bad decisions are more subtle. Today, let'