Dr. Steenbarger recently posted a source entitled Overconfidence & Underconfidence in Trading: Biases in Processing Emotions. In the post, Dr. Brett discusses objectivity and how we process and recall experiences which lead to performance issues (usually hindrances) in the present. He shares a personal story of how he ‘felt’ relieved/good when he traded poorly and…
Happy 4th of July! The markets are setting up interesting swing patterns and are exhibiting both consolidation (which makes sense) and momentum divergences. Neither bulls nor bears are making significant headway in the last few weeks of trading, and little – except some shock – is likely move investors either way soon. The Russell and…
JMOT’s Blog is offering a series of free articles for trading beginners, and the most recent post is entitled “What Makes a Good Trading System?” For those just starting out in the world of trading, or those gripped by greed or fear, a personally developed trading system can help reduce the effects of these emotions,…
Martin Pring’s recent (2006) book The Investor’s Guide to Active Asset Allocation details one of the most complete explanations I have seen so far (in easy to understand format) regarding sector rotation, the business cycle, stock market cycle, money/portfolio management, intermarket relationships and many other concepts. Not only is the text a virtual reference manual…
The major story over the last month has been the impact of rising bond yields and their effect on the overall market. This updated chart from StockCharts.com provides a graphical representation of what has transpired over the month of June in terms of major market relationships: Interpretation: The Yield on the 10 Year Treasury Bond…
It was a wild week of trading, to say the least! I’m glad we made it to the weekend so we can pause and update our charts and catch a breath! Next week is expected to be a very low volume week because the 4th of July falls directly in the middle – on Wednesday! …
I wanted to highlight a blog and service some of you may not be aware of yet. Paul Castro is an author and investment director at Vestopia.com and he provides timely analysis on the market and news events, including his recent post “Tick-Tock” which is definitely worth consideration. In the post, Mr. Castro discusses various…
Stockbee posted a thought-provoking column entitled “What are Your Goals in Trading?” that addresses the age-old question, “Should I trade to be right or should I trade to make money?” At first glance, and to many new traders, it would seem these two concepts are irrelevant because you make money when you are right… don’t…
Chris Perruna recently posted on the topic of Position Sizing and Expectancy (as discussed in great detail by Dr. Van Tharp – book reference included in post). Attached are a few quotes from the post: Most traders look for three major factors when developing a system: How much to trade on each position The right…
I know it’s a question on everyone’s mind, especially if you are new to trading. “How Can I learn how to Trade?!” or something of the like. Dr. Steenbarger provided a brief post with links to other resources to help you get started on your journey, or help give direction to current travelers. He begins…