Trend Termination
One of the themes I've written on recently is that we need to be careful how we think about trend change and end of trend patterns. I think too much of noise, particularly in social media, is focused on trying to take a position against a trend so
Readers Questions
Dave asks: "Can you talk a little about order types? Market, limit, and stop orders? Do you work your orders overnight? Do you ever cancel like a stop before it is hit? Thank you." A good, practical question, and the answers can be pretty cut and dried. For
General Comments
I've written a series of short posts this week on simple trading rules that can make a difference. I've tried to make this as broad as possible, so that they will apply to traders working in all styles and timeframes. Today I want to share a
General Comments
Earlier this week, I sent a note to my email subscribers in which I shared a few thoughts about blogging, the fascination of financial markets, and about my firm, Waverly Advisors. This morning, I'd like to share that note with you. (Edit: my work is now available at
Individual Traders
You have to be disciplined to trade successfully; we all know that, and it's one of the few pieces of trading advice that might apply universally. No matter what your trading style, market, timeframe, risk profile--whatever you do, you have to do it consistently and with discipline. It&
Individual Traders
This week, I'm writing a series of short posts on very practical, applied things that you can add to your trading toolkit. I'm trying to select these so that they work for a wide range of trading styles, timeframes, approaches, and instruments, but think carefully about
General Comments
I want to share a simple rule that has worked well for me over the years. I'll explain the how and why, and then wrap up with some thoughts about when this rule might not be appropriate. So, imagine you are in a position, and then, for whatever
General Comments
I have a little pile of reader's questions here, so let me just get to them. John asks: "Should I use stop or stop limit orders to protect profits and limit risk?" John, like pretty much everything else in trading, the answer is a solid "
General Comments
As we head into the US holiday of Thanksgiving, I want to share a practice that has made a real difference for me--for me as a trader, and also for me as a human being. It's a simple thing, but it has to be done right--the practice of
General Comments
Take a look at this picture which I took a few years ago, on a Friday afternoon, on a New York / New Jersey ferry. After a long and stressful work week (it was 2008), the gentleman in the photo was more than a little inebriated (i.e., could barely stand
Podcast
So much emphasis is placed on where to get into a trade, entry signals, entry patterns... but the decisions we make after we are in the trade are at least as important (and maybe far more important) for overall profitability. In this episode, I dig into some of the ideas,
Volatility
Just a quick post to remind you of a technical tool you probably already know about. Like so many things that work, it's not exciting or sexy on the surface. It might seem overly simplistic or just not that interesting--but this is a powerful pattern that demands attention.