Psychology
Today's topic might appear to be a fun one, but, for the unprepared trader, there is actually serious danger here. What do we do when a trade results in a larger than expected win? What do we do when volatility becomes much larger than when we put the
Market Math
Over the years, I've had my fair share of being on both the right and wrong side of world events. However, on balance, I've noticed an unusual number of times that I am in trades that appear to have somehow predicted the future--whether being in a
Anti
Since my other post today led you down a long trail of something that did not work, let me leave you this weekend with a pattern to watch over the next several weeks. Let's consider a potentially bearish pattern in Apple (Nasdaq: AAPL), and how that might play
Market Math
I'm always doing research. Sometimes these are large, multi-month projects, but other times they are just a quick look to see "what the data says", and I share some of those results with you here. However, most research does not yield results--when we dig for treasure,
Psychology
One of the curious elements of human psychology is the tendency to fade moves or to try to pick turning points in trends. When I started trading, this was how I started out--looking for patterns that showed a trend was ending and trying to take a counter-trend position. Over the
General Comments
...the words “leverage” and “derivative” have become so mushy and ill-used that they have lost almost all meaning except as a weapon, as a tool to cast doubt on someone’s motives, competency, and ethics... (Salient) Be careful of extrapolating to the future (Market Anthropology) I'd be careful
General Comments
(Continued from this post.) I left you yesterday having discussed filtering for volume and activity and volatility. Today, let's dig a bit deeper and, first, look at filtering for certain other trading characteristics, then let's ask some of the questions that we always should ask when
General Comments
[dc]A[/dc]ttention is a precious resource. None of us, whether individuals or institutions, have an unlimited supply of attention. Part of the process of trading successfully is figuring out where to focus that limited attention. Part of this is dynamic; as trades develop we are able to spend
Psychology
[dc]I[/dc] want to write a few words today on intuition. This is a slightly thorny subject, because it is not easy to say what is right and what is wrong; one person's approach to and experience of intuition may be very different than another person'
Psychology
I'll paraphrase a question I received from a reader on the trance portion of my trading course: When I do the trance recordings I get so relaxed that I sometimes fall asleep and remember nothing after the session. Rather than reclining, I've tried sitting in a
General Comments
...the video blog I posted last night has some good information on subjective pattern recognition and trade management, along with some specific comments on the art aspect of trading. It is a bit long for a video blog (thirteen minutes), but I think it significantly extends the discussion.
General Comments
Continuing from yesterday's post, I thought it might be interesting to review some trade setups I posted here this month (here and here, but also this post on the euro is also relevant). The video blog is about thirteen minutes long, but the point is not to review