Have you ever been caught in a trade and your emotions are overtaking you, causing you to make a decision based on your feelings? Was it a good decision after the fact?
Typically, if we trade specifically on emotion (greed makes us buy too late, and fear keeps us in too long… or prevents us from […]

By analyzing fundamental components of the economy and business cycles, you can gain an edge using technical analysis signals. But what happens when fundamental signals (or anticipated releases) thwart an otherwise good technical setup?
When I first started trading, I wanted as many signals to be in line with my analysis as possible, and as […]

When trying to assess daily market internals, it is helpful to follow the Breadth, or the Advance/Decline Lines (number of stocks positive for the day vs. the number of stocks negative for the day).
I plot these lines to create an inverse graph, rather than simply following the breadth number because it helps show the past […]

While no blog post can adequately address the realities and implications of “regret aversion,” I wanted to alert you to its existence and possible resources for learning more.
Simply stated, we feel regret and remorse more for actions we DID take than for actions we DID NOT take. One way to understand this is that […]