Kirk at The Kirk Report summarized ten steps to a trading edge from George Fontallis (author of The Stock Market Course and The Options Course) and – while I will not list all ten (visit his site!), I wanted to expand on a few of them that are pertinent to trading psychology. 1. Understand the…
Would you like to know the true, statistically tested spot of a new trend in development? Is this the secret to riches?! No, there is no secret, unfortunately, but with this objective model of quantifying trend birth, you’ll be more “in the know” than those who miss this key “Sweet Spot” in the market structure….
Although we all employ different trading strategies across different time frames using different vehicles (stocks, options, futures, etc), there really are a limited number of pure trades we can take and it is helpful to know the major types and when we are employing them in our trading arsenal. The four major types I propose…
From Charles Dow, Robert Rhea, and Richard Schabacker (and others) – early pioneers of stock market technical analysis – four driving principles of market dynamics have endured the test of time and still guide technical trading decisions across all time frames. Each principle can be quantified mathematically and most (if not all) mechanical trading systems…
Have you ever sat down for you nightly analysis and wondered how far a potential trade might go? Although the market is the final arbitor of how much profit a potential trade can make, we can adjust our thinking and emotions to capture either more or less of that potential profit. Once you enter a…
Ever wonder the exact place to rest your stops? Sadly, there is no exact place and there is no magic formula. Placing your stop involves a trade-off between risk (in dollars) and probability of being triggered. Simply put, the closer your stops are to your entry, the less you risk, but the higher the probability…
Whatever sparked our initial interest in trading, we all have to answer the same question daily: “What do we do at the edge of the chart?” Even now, that question haunts me after I’ve studied my charts, examined the overall market, and scanned economic news. Even with all that behind me, when the trading day…
When beginning this blog, I think it is important to highlight one of the classic ideas from Price Headley concerning “The Four Fears of Trading” 1. Fear of Loss 2. Fear of Missing Out 3. Fear of Letting a Profit Turn into a Loss 4. Fear of Being Wrong (not being right/perfectionism) Links come from…