Relative Strength
[dc]L[/dc]ast week I shared a new data visualization that looked at short and long term performance of sectors in context of volatility. This week, I'd like to share another tool that we use in our analysis for my Waverly Advisors weekly research reports. For many
Individual Traders
[dc]B[/dc]efore I was a trader, I was a musician. In my career as a musician, I discovered the value of teaching—that I enjoyed teaching, I was good at it, and that teaching helped me refine my own skills and thinking. (The same is true of teaching
Psychology
[dc]P[/dc]eople talk about "learning how to lose" and "losing gracefully". Truth be told, that's a concept I've always had trouble understanding. Though I know there is some wisdom in the idea of losing gracefully, I am a terrible loser.
General Comments
A quick look at stock market performance by market cap slices. Simply put, smaller cap stocks (e.g., Russell 2000 (IWM)) tend to outperform larger cap stocks (S&P 500 (SPY) used in the video) during "risk-on" market cycles. This is probably driven by investor psychology and
General Comments
I haven't done this before, but I thought it might be interesting to share some of the links I read each week. Many other writers do this, and they seem to (quite logically) cluster them near the beginning or end of the week, so I thought I'
Individual Traders
[dc]I[/dc] had an interesting conversation a month ago with Ian, a trader who I mentored a few years back who has continued to work on his trading skills and now trades on a professional level in the Philippines. He shared some thoughts about how developing patience and avoiding
Relative Strength
Understanding sector strength and weakness is an important part of the investment process. Here is one way to look at short and long term performance relative to current volatility within each sector.
General Comments
[dc]A[/dc]s we all know, the road to trading success is a long road, and the path is not at all straight. To achieve some degree of competence can take years, and I think it really probably takes a decade to achieve some degree of mastery. (One of
General Comments
[dc]I[/dc] often get questions about the research I write for Waverly Advisors: what it is, who it is for, how it's different than a "newsletter", how to use it, and many others. I thought I would just write a short blog post to answer
General Comments
1. Trade too big. "Too big", in this case, means trading too large relative to your account size. (If you have my book, Chapter 9 includes an extensive discussion on this topic, with illustrations of what can go wrong.) Even a profitable trading system can be torpedoed by
Failure Test
[dc]L[/dc]et's take a quick look at some developing market structure in the US stock market. First of all, consider the broad context: we are firmly ensconced in summertime trading conditions. This means low volume and, usually, low volatility. In fact, volatility is extremely low by
General Comments
[dc]I[/dc] wanted to take a look at a short trade in gold we closed out yesterday in my research report I write for Waverly Advisors. There are a few good points here to consider: some stuff on multiple timeframe setups, managing trades with an eye to probabilities and