Breakout
Chart of the day: NFLX
Good pattern to commit to memory. Probably not a great idea to initiate positions before earnings, but this is also not the only stock with this pattern right now...
$spy
Chart of the Day
Chart of the day: large bull flag in NYSE:X
Psychology
Finding flow in trading and in life
Have you ever been so completely engrossed in an activity that you become lost in it? Maybe you had no sense of time and hours seemed like minutes—you forgot what you were doing, and even the normal, scattered wandering of your mind stopped and you were completely focused on
Chart of the Day
Chart of the day: global stock volatility
Here's a chart I published yesterday in the research I write for Waverly Advisors. I thought no comment other than "wow" was needed... (Edit: my work is now available at Talon Advisors.)
Anti
Multiple timeframe conflict: EUR/GBP
Multiple timeframe analysis can provide good context and perspective on market moves. Take a look at the daily and weekly chart of the EURGBP below, which popped up on my radar screen because of the 3.2 sigma move underway this morning. The daily chart is strong, and appears to
General Comments
Maintaining motivation
It’s that time of the year again: resolutions are made, gym memberships bought, diet plans laid out, major projects are started—the whole time, everyone knowing that all these plans are doomed for failure. Why do we fail so consistently on these New Year’s resolutions that it has
General Comments
Setting goals and making plans
In the post-holiday quiet, I tweeted yesterday inviting my followers to think about the one thing they could do in the coming year to improve trading results. I hoped to provoke some thought, and knew that the answer you come up with probably is unique to you—some of the
General Comments
How a trader should think about central banks
One of the recurring themes I've heard from traders (both professional and private) over the past decade or so is distrust, anger, and mocking of central banks and central bank action. I won't quote anyone, but some examples: * Prices can't move randomly because central
General Comments
Simple things work
Over the past few weeks, I've been hanging out a bit more in internet trading rooms and groups. It's been a good reminder of the kinds of questions and mistakes people make as they are learning about markets. Room moderators strut (including one who told his
General Comments
How to find trading ideas
There are patterns in market prices—of this, there is no doubt. Some small set of these patterns even can help us with our trading and investing. Some are worthless. And some aren’t even there at all—they are literally figments of our imagination-laden cognitive biases! What do we
Psychology
You are what you read: try an information diet
A developing trader said something to me a few weeks ago that has stuck in my mind: he said that he has to be careful what websites he reads because negativity can be dangerous; when you live in a constant state of fear, it colors everything you see. Be careful:
Anti
Trading lesson: copper futures
Recent action in copper futures gives us some market lessons. These can be adapted to other markets and timeframes (so if you just trade stocks or currencies, don’t skip over this because it’s a futures market!) I’ll try to keep this as short as possible, but there