General Comments
Successful trading and investing is largely about asking the right questions. Many of the most serious mistakes we make come from blindly accepting our ideas and perceptions at face value. I would like to offer you a short checklist of questions that will challenge you to think more deeply and
Individual Traders
This could, perhaps, be the shortest blog post ever. I could simply answer the question with: follow your rules. Get out. But let's dig a little deeper. Before we really begin, it's important to remind ourselves that there are many ways to trade and invest successfully.
General Comments
Markets are complicated. Market analysis is complicated. Developing a trading system certainly can be complicated. But trading cannot be complicated. The act of placing trades and evaluating results must be as streamlined and simplified as possible. Here are a few suggestions for things you can do today, with investing an
Individual Traders
This post was originally published on See It Market as part of the Market Masters series. The original post can be found here.] I am a quantitative-discretionary trader. I have made it one of my life’s goals to understand how financial markets move, to understand how to predict those
Individual Traders
I've been asked a few variations of the same interesting question recently. Here are a few examples: The one thing I keep struggling with is finding an edge I can use in a disciplined and consistent way. How do you define an edge? To me an edge can’
Climax
Continuing from yesterday's post, I wanted to dig a little bit deeper into the idea of what happens when markets go too far, too fast and snap back. This concept is called overbought/oversold in the traditional technical literature, and it is one of the most important elements
Technical Patterns
Last week, I covered pullback trading, which is one of the most common and most important with-trend trading patterns. This week, I will dig deeper into some different patterns, but I thought it was worthwhile to first think a bit about the differences between with trend and countertrend trading. This
General Comments
This is an obvious issue, but one that is often ignored. The argument of many academics is that you can’t make money trading; your best bet is to put your money in a diversified fund and reap the baseline drift compounded over many years. (For most investors, this is
Technical Patterns
I post a lot of critical thoughts, and spend a lot of time encouraging people to think deeply about the technical tools they use. Recently, I've received a lot of questions about what I think actually works. Though I've answered this in some depth before (and
General Comments
It pays to think deeply about markets, how they move, risk, opportunity, and how it all plays out in the grand scheme of probability. We can and should spend a lot of time crafting our trading plans, understanding our risk tolerance, and monitoring our adherence to those plans. But, in
Market Math
It is easy to calculate statistics, and it seems like, more and more, we are bombarded with market statistics from every side. The problem is that many of those statistics are false or misleading and making market decisions based on those statistics can be hazardous to your financial health. Truly,
General Comments
There must be a thousand ways to lose money trading, and most of them are bad ways. Many traders, especially newer traders, are paralyzed by fear of loss. Many traders go "on tilt" due the frustration of losses, and throw good money after bad, sometimes wrecking trading accounts