Would you like to pick tops and bottoms more accurately? Honestly, this shouldn’t be your goal as a trader, but with the “Sweet Spot” concept, you will be able to put trends and markets in a better context to identify when conditions favor a final phase of a trend in motion and a potential birth…
We all trade for one reason, right? To make money. So why does it seem that achieving that simple goal is so difficult at times? Also, if we trade to make money, why do many successful trading professionals advise us “not to focus on the money” – doesn’t that seem entirely ironic? In fact, in…
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…
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…
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,”…
Have you ever been frustrated by a stock? Of course you have. I like to keep a separate paper file of stocks that just blow people’s minds and expectations and generally defy all common expectations (from a technical analysis standpoint). Not only is it a fun activity to me, but it helps me relieve stress…
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…
Dr. Steenbarger recently shared his personal story with readers regarding a recent life-threatening medical emergency he encountered. We are so glad he is doing better and that he has shared his experience with us, including lessons learned. Not only do the three lessons relate back to trading, but to life in general. Dr. Brett’s three…