This week was a very active week and I am glad the weekend is upon us. Take a little time out of your Sunday evening to study up on some of the posts from the blogosphere and learn some new insights. I’ve always tried to avoid swing trading around earnings, but have studied various approaches…
The Big News of the day was of course the missing earnings consensus estimates by Dow giant Caterpillar (CAT) and Nasdaq/S&P 500 giant Google (GOOG). These major point moves serve as a warning for those who like to speculate directly before earnings reports are released – doing so is pure speculation and lacks objective edge…
With the new Harry Potter Movie being released last week, and the final book in the “Potter” series being released this weekend, I thought it would be fun to take a look at the young wizard’s portfolio holdings as he grows up and (hopefully) moves to adulthood away from Hogwarts (this post contains no plot…
Today was yet another record day for the Dow Jones Index, and writers are taking note by utilizing many pixels and ink to share this fact with their readers. The Dow officially closed at 14,000.41. Yes, it is impressive and yes, it is a record, but let us remember that the Dow Jones Index tracks…
I have provided you some examples of variables I used to demonstrate the need to use an Equity Curve Simulator to help you envision your possible trading results over time. First, I am using a Reward/Risk Ratio (or an “Ave Win to Ave Loss”) of 1.5 (The average winner is 1.5x the average loser… maybe…
TechnicalTrades.net offers traders an Equity Curve Generator algorithm/program for you to input parameters into the formula and randomly simulate outcomes that could be representative of your trading system. Traders who have been around for longer than a few years know that the success or failure of a trader is due to holding fast to the…
The Fresh Trader Blog recently simplified the concept of Risk/Reward Ratio into a simple post with informative graphics. The blog is designed for newer traders and it offers very great basic information to get you started and provides references for more advanced students of the market. Remember (quote): In order to calculate the risk/reward ratio…
Tim Paradis wrote a clenching article posted on Yahoo Finance this afternoon in regards to the Dow Jones crossing 14,000 for the first time. Specifically, he ponders “What does this mean for the average investor?” Here are a few quotes from the brief article: “While it’s true that such round-number milestones often draw big headlines…
For those of you interested in Behavioral Finance or the Psychology of Trading, this month’s edition of Stocks, Futures, and Options Magazine contains plenty of information regarding these topics and more. The cover article is entitled “Build Your Trading Brain,” and other articles in the magazine include the following: “This is your brain on trading,”…
The Dow Jones set another new all-time closing high today, but it was the only major US index to show an advance on the day. The largest index decline came from the Russell 2000, which has lagged the S&P, Nasdaq, and Dow in terms of making new highs and its technical pattern (it remains rangebound)….