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…
A key book that helped me address my own fears of trading and risk-taking was a book by trading psychiratrist Ari Kiev: The Psychology of Risk Taking. Kiev worked with many traders through his career, and found the number one problem facing professional traders was that they did not take on enough risk in their…
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…
Needless to say, there was an overwhelming amount of fear that resonated throughout the market yesterday. Without addressing the specifics or reasoning behind the decline, as have been addressed by news sites and other blogs far superior to my new blog-in-development, I wanted to take a different approach and address some of the emotions of…
There’s no avoiding it – the market got clobbered this morning before the opening session and has not managed to recover as we just breached the noon hour. Although the instinctive move might have been to “fade the gap”, realize that this gap was largely fundamentally driven with a possible contagion effect and struck with…
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…