Failure Test
[dc]I[/dc] want to do a small series of posts looking at some of the most important trading patterns I've used over the years. Rather than go in-depth with multiple examples, I'll keep these posts as a high level, introductory overview and will focus only
General Comments
[dc]O[/dc]ne of the main challenges for stock traders is understanding the ebb and flow of the broad market on the shortest timeframes. There is so much noise in price movement at this level, and so many instruments are traded, that it is hard to know what is
General Comments
Traditionally, the spread of Consumer Discretionary stocks over Consumer Staples stocks has been taken to be a gauge of market sentiment—a clear expression of a cyclical sector compared to a defensive sector. Note that this is a coincident indicator, meaning that is has not led the market at major
General Comments
[dc]T[/dc]his, my first reader question, comes from John in Seattle: I often see and hear people talking about good risk management being a good part of trading. What does this mean exactly? Limiting the size of your losses? Something else? Thank you. John is right. I have
Individual Traders
[dc]O[/dc]ne of the challenges facing stock traders is knowing where to focus your attention. In a universe of roughly 7,000 names, with maybe 2,000 of those traded actively, how do you know you are finding the best opportunities? Too often, people focus on what is
General Comments
[dc]J[/dc]ust an open invitation here to my readers: If you have topics for discussion, ideas for posts or series of posts, questions on the book, questions on the market or trading in general, please ask. You may either ask in the comments here or email (adamhgrimes at
General Comments
I thought I'd share a few thoughts today, kind of a "what I've learned in the past 10 years" post. This list was refined and crystallized by the process of writing the book, but this list was also a major reason why I wrote
Individual Traders
The first principle of price behavior: Markets alternate between trends and trading ranges.
Individual Traders
The building blocks of market structure and price action. [dc]T[/dc]echnical analysis is the art and science of predicting the future direction, timing, and/or magnitude of a market’s movements, mainly by using information contained in the price changes of that market. The term technical analysis is
General Comments
The conclusion of the plan for ITAC.
Individual Traders
The plan for the Introduction to Technical Analysis Course
General Comments
[dc]I[/dc]n doing the preparation and background work for the book, I found a set of rules for a swing trading system I traded for many years. I thought I would share a few snippets from those rules, especially the parts dealing with trade management and behavior management.