When traders want advice on their trading what better place to go than someone who had both big and consistent returns over a very long period of time? “Mr. Seykota himself has put together a money management track record with returns of roughly +60% net of fees over the three-decade span of his trading career…” […]
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“Trade what’s happening, not what you think is gonna happen.” – Doug Gregory In trading there is only one time frame you can trade on: the present moment. You can’t time travel to the past or future to enter a trade so everyone is stuck trading in the present moment. Your decisions in this present
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Most trading books explain the principles and philosophy of trading, and I have read hundreds of them. Very few give examples of trading systems that have an edge and show the equity curve of the system as it is traded through different market environments. Here are eight trading books that discuss several systematic ways to
Books That Are Trading Strategy Guides Read More »
Here are ten reasons a stop loss is so important in trading: A stop loss defines your price risk by quantifying what price level you will exit a trade at. A stop loss helps define your trade size. By knowing what price you are going to exit a losing trade you can set your position
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Jim Simons was a hedge fund manager and a mathematician. He was a quantitative investor and the founder of the hedge fund Renaissance Technologies. His hedge fund specialized in systematic trading using quantitative models derived from mathematical and statistical analyses. Mr. Simons primary models were on pattern recognition. He contributed to the development of string
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Linda Bradford Raschke was one of the top traders featured in Jack Schwager’s book ‘The New Market Wizards’ her trading results were outstanding both as a floor trader and when she moved to trading at home from her own office. She had consistent success in her own personal trading and even made seven figure profits
Review of Linda Raschke’s New Book: Trading Sardines Read More »
Trend following is the process of trading in the direction of the markets price action and staying with the trend until it ends. A trend follower must have a quantified winning process for entering when there is a signal and then either exiting for a small loss when a trend fails to be established or
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The RSI (Relative Strength Indicator) is a is a momentum oscillator that measures the speed and change of price movements. The RSI moves in a bounded range between zero and 100. I use the RSI on the (14) setting on the daily chart. The RSI is generally overbought when its reading is above 70 and oversold
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This is a Guest Post by Jake @TrendSpider. In this weekend’s analysis, we take a look at the broad market ETF’s SPY, QQQ, and Bitcoin. We are also excited to have guest, John AKA “TrueBubbleHead” on Twitter who is the founder of positive-trends.com, on our webinar on Sunday to discuss how he uses Raindrop(TM) charts in
The Key Trendlines on the Charts: $SPY $QQQ $BTCUSD Read More »
Chart courtesy of StockCharts.com The Double Top Chart pattern is a reversal pattern that is bearish. This pattern is created when a key price resistance level on a chart is tested twice with a pullback between the two high prices at resistance price level tests. Chart Facts: A double top chart pattern happens at the end
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The Head and Shoulders Chart Pattern is one of the most popular and bearish patterns in technical analysis. It defines three attempts to make highs and then trend but fail, it precedes many major corrections and bear markets. Chart Facts: The Head and Shoulders chart pattern is a reversal pattern of an uptrend. The pattern
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While the Head and Shoulders Chart Pattern is one of the most popular in Technical Analysis few people have heard of the Inverted Head and Shoulders Pattern. It is basically the opposite of the classic Head and Shoulders, while the regular pattern is ominous and bearish the inverted version of the pattern is very bullish
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A bullish divergence is defined on a chart when prices make new lower lows but a technical indicator that is an oscillator doesn’t make a new low at the same time. This is a signal that bearish sentiment is losing momentum with the high probability that buyers are stepping in and the market may be near a
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“Trade what’s happening, not what you think is gonna happen.” – Doug Gregory Price action trading is the process of reacting to current price to make entry, exit, and holding decisions. It is replacing opinions and predictions with valid signals. A signal is a quantified reason to enter a trade, stay in a trade, and
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There are many things people trade based on. They can trade based on a company’s fundamentals or macro economic trends. People can place trades based on their own beliefs, projections, predictions or personal opinions. Also psychological errors like the fear of missing out on a move, greed, or ego can lead to trading decisions. There
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Here is an example of a simple long term profitable trend following system for the $SPY and $QQQ ETFs. This is backtest data from trading the most popular of all moving average crossover signals the “Golden Cross” that is the 50 day / 200 day simple moving average crossover. This signal goes long when the
Golden Cross Trading Backtest on $SPY $QQQ Read More »
This is a Guest Post by Jake @TrendSpider. In this weekend’s analysis, we take a look at the broad market ETF’s SPY, QQQ, and Bitcoin. In this update, we view how the daily Raindrops(TM) and weekly hollow candles played out for the week while utilizing unique features from TrendSpider to do this. Make sure to set
Breakouts Versus Trendlines on the Charts Read More »
This is a list of things to look for as possible signs before a stock makes a top and rolls over. Alone these are just possibilities but the probabilities increase as more of the signs are in place. When the RSI gets near 70 on the daily chart for a stock and it becomes overbought
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“Successful trading depends on the 3M`s – Mind, Method and Money. Beginners focus on analysis, but professionals operate in a three dimensional space. They are aware of trading psychology their own feelings and the mass psychology of the markets. Each trader needs to have a method for choosing specific stocks, options or futures as well
Money Management in Trading Read More »
The MACD (Pronounced Mac-Dee), is short for moving average convergence/divergence, it is a technical trading indicator used in technical analysis to filter and trade price action. It was created by Gerald Appel in the late 1970s as a new tool for technical analysts. It is designed to reveal changes in price strength, direction, momentum, and duration for trends and swings. The
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