Hermann Hesse is may be a strange source of wisdom for overcoming trading fears, but consider the following ideas. These quotes are taken from Hess’s work Demian where the title character Max Demian is speaking to Sinclair (main character) regarding fear and “the larger picture of the human condition.” “… You are only afraid if…
Bill Luby at the VIX and More excellent blogsite posted two recent compilations regarding investment books you should consider reading. The first list is entitled “Ten Anectodal/Historical Book Ideas for Investors” and includes one of my favorites: Alan Farley’s The Master Swing Trader. A second list which is very important to active traders/investors is his…
I read a post from StockBee which discusses a recent short exchange between a trader and Ed Seykota, a famous trend-following advocate. Seykota responds: “… trends do not exist. Like the past and the future, a trend is merely an idea. There is no such thing in nature. Trend is an idea about…
Attached is a harrowing picture of the current state of what’s strong in the market over the last three months. I am including a line chart and a bar chart to convey the point and clearly identify differences in prices: Clearly, we see that had you invested in the strong energy sector, you could have…
Dr. Steenbarger at TraderFeed has written a three-part (so far) series entitled “Trade Like a Scientist,” which includes insights on how to approach the markets from a structured, formal standpoint. The scientific method is standard operating procedure for any quality experiments, and experiments contribute to the known body of collective knowledge which comprises science. Trading…
Schlumberger: Funny name, powerful stock. Even though I don’t watch “Cramer”, others inform me he has mentioned this stock various times and from my studies, the fundamentals, as well as the technical charts (regardless of what method you use) look promising. Active Trader Blog posts a strong daily chart of SLB as well as a…
Technically, I should be waiting until this weekend to post weekly index charts, but these look so beautiful (so far) that I couldn’t resist. With the exception of the Nasdaq and Russel (technology & small cap respectively) the weekly charts of the Dow and S&P are making new all time highs as well as new…
Today’s action was nothing less than stellar. The gap up in the morning led to a bear-flag like correction to the moving average (consolidation) and then it was quite literally off to the races when the Fed Beige Book hit the newswires. First, two index charts showing price trapped (for now) below the rising 20…
Here are a quick charts of the Indexes: Holding the Bottom Bollinger Band Lurking above the 50 period EMA Market making new momentum lows Stochastic registering a buy signal Volume increased today on the sell-day… distribution Clear momentum divergence now unwinding Support should be 13,200 until it fails Has not reached bottom of Bollinger Band…
Dr. Bruce Hong on his Trading Psychology blog recently began an engaging and interactive discussion on overcoming fears in trading. Dr. Hong posts a recent email from a deeply capitalized, intelligent trader that is described as: He now experiences such intense stress while trading that he frequently pulls his entry order, just before it’s hit….