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)….
I know the headline gives it away, but a positive momentum divergence is clearly forming on the US Dollar Index, as evidenced by the 3/10 momentum oscillator and a “Swing Chart” reading. The dollar index recently made new lows, which hit the newswaves rapidly, but from a technical perspective, we have at least three bullish…
In the past, I have provided individual site links with a short summary/analysis designed for each link. Now, because I am reading more blogs and finding many more high quality links, I’ve decided to offer a few posts containing multiple links with fewer summaries per link. Here are a few links that are definately worth…
The Author at Simply Options Trading recently provided five professional links and two blog links regarding Sector Rotation Theory and I wanted to direct you to the site to check out those resources. I won’t steal the thunder by reposting the links, but will advocate you to visit the site and glance over a few other posts…
Prospectus at Move the Markets recently detailed entry, management, and exit (by stop) of a trade in RIMM. The post highlights the detailed process from set-up, entry, and other aspects and then concludes with a nice explanation of the lesson learned from the experience that resulted in a 1-R loss due to stop-loss placement. Prospectus…