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
Trader Development
Do you ever work really hard and feel like you got nothing out of it? Or, even more to the point, ever work a long time on developing a skill, and have the feeling that you’re getting worse instead of better? Chances are, no matter what you’re into,
Readers Questions
A trader I work with, Glenn, sent me this note: Adam, I think this would be an excellent blog post because when it happens it is so frustrating. I got triggered long, and price came within 3 cents of my 1.0R [R = initial risk on the trade] take profit
Chart of the Day
Chart of the Day
Breakout
Chart of the Day
Chart of the Day
Both the level of vol and the relationship of implieds to realized (historical vol) are important. Low vol environments bring some unique risks, but don't assume that vol "must" go up in any timeframe!
Chart of the Day
Anti
Chart of the Day
Train your eye to see and process inside days automatically. (Note that this chart was snapped around 10:00 EST, so things will likely be very different by close. Whether or not you execute intraday or wait for the close (if you're a swing trader) is another discussion
Trading tools
I’ve looked deeply into ratios, levels, and their application to market data. I won’t rehash all of that work here, but, after literally years of research, the bottom line is that I cannot find a shred of evidence that any of the common ratios or levels (Fibonacci, pivots,