Chris Perruna posted a brief article with a few major points and well-annotated charts in his article “A Natural Correction or a Top?“. Perruna notes, “Corrections are due when markets move up by 30% over their levels from the prior year.” He also annotates charts on Crude Oil, the Nasdaq, and the Dow Jones. I…
Craig at Swing Trade Stocks provided an excellent summary of how to set-up blog feeds (via Bloglines or his favorite, NetVibes) and view headlines and updated content of your favorite blogs (which should have an ‘easy to subscribe’ feed button). Doing so will keep you more up-to-date faster, and as we all know, speed and…
Dr. Steenbarger at TraderFeed posted a set-up (post:Â Idenfitying Transitional Structures) using volume, momentum extremes, and the NYSE TICK readings to identify possible exhaustion and reversal points in daily price action which can be very helpful for day-traders (and even swing traders looking to enter a position at momentum extremes/reversal points). It is recommended reading…
TraderMike recently linked to a great, short post from Wade Meredith on cognitive errors entitled “26 Reasons What You Think is Right is Wrong” and includes such known biases as the bandwagon effect, confirmation bias, loss aversion, outcome bias (etc) and provides a Wiki (encyclopedia) link for each cognitive bias. It’s a great resource and…
In case you’re wondering why we endure the sometimes stressful daily grind that is trading, Dr. Steenbarger recently published four encouraging quotes from his recent texts in his post The Heroic Dimensions of Trading. Read them over and meditate over them if they speak to you. It helps to envision your trading as something greater…
I am really getting a lot out of Dr. Bruce Hong’s new site on Trader Psychology. Here are three detailed posts (containing a six-step process) to help you break your bad habits: How do Addicts Break Habits? Bad Habit Breaking Part I Habit Breaking Part II Dr. Hong is addressing specific topics using academic biological/behavioral…
Bill Fleckenstein recently published two bearish articles both on the US and Global economy. Here are a few quotes I wanted to highlight: From Ignoring the Lessons of 1929: The economic and financial landscape of 2007 bears striking similarities to 1929. …business began deteriorating in the spring of 1929, though the partying in stocks lasted…
Dr. Bruce Hong recently published his blog on Trading Psychology with the perspective of biological psychology and academic research/information. I am thoroughly impressed with his posts so far (they are very detailed and informative to all levels of readers) and I highly recommend reading and following his posts. The site is simply entitled TraderPsychology and…
Teresa Lo posted recently regarding insights from Mark Douglas, one of many traders’ favorite authors. In it, she discusses fear, biological responses, pain, edge, seven principles for consistency/success, and other insights. I have attached two key points: I recently finished reading The Disciplined Trader (Mark Douglas) and was completely impressed, especially with its constant handling…
Dr. Steenbarger recently discussed five major differences between professional traders and novices based on his experience in working with professional traders. Here are a few highlights: Pro traders think about the big picture – they monitor intercorrelated markets and observe relationships between them (and trade them!). Pro traders also think ‘small,’ in terms of returns….