This blog post came from a discussion in my facebook trading group. It was originally shared by Vivek Ravindra Hardikar. He read this story in the starting part of a fine book on Pair Trading written by Ganapathy Vidyamurthy.Great Story, Great Book.. Here is the Story from that book.. ****Once upon a time, there were […]
Trading Against the Elephant Read More »
Trading is more about the trader than the markets. The markets are neutral; they have no agenda and no evil plots to take your money. Each random entry has a 50% chance to win or lose, even with no method attached. The key is getting an edge in your trading. Knowing who you are
New Trader, Know Thyself Read More »
I have grouped my best blog posts of the past under different topic areas. Each blog title listed is available on this website. You can search for these blog titles directly on the website in the search box to find topics you are interested in. Risk Management Risk Management in 1 Lesson 7 Things Trader’s
New Trader University Blog Table of Contents Read More »
Guest post by GG Finances This year American’s New Year gift will be delivered directly from Democrats, and basically on behalf of Obama, who planned the cuts in the budget spending and increase in payroll taxes. In other words, economists and investors are forecasting the so-called ‘Fiscal Cliff’, which is anticipated as en expression
The Fiscal Cliff Americas 2013 New Year Gift Read More »
Reading Nicholas Taleb’s newest book Anti-Fragile really got me thinking about how traders are broken. Traders can become fragile and be broken in several ways: They can quit because they believe that trading successfully is impossible. They can lose half their account or all of their account and just give up. They can become emotionally
Fragile Traders vs. Anti-Fragile Traders. Who breaks First? Read More »
This is a crucial time to remember the 1% rule in this current market environment or better yet stay in cash until a trend emerges. The very first rule we live by is: Never risk more than 1% of total equity on any trade. -Larry Hite (Market Wizard) I try very hard not to risk
Risk Management in 1 Lesson Read More »
Trading is not all fun and games. We do not make money on every trade. It is not like other careers or jobs where you work and then get paid. Our pursuit is more like the life of an entrepreneur than an employee even for part time traders with full
How to Trade Through the Pain Read More »
Due to the discretionary nature of trend lines I trade using moving averages to identify trends along with support, and resistance levels for price action. I am already a rule based discretionary trader so I do not need to add any more discretion into my trading. I like that moving
Apple’s Sneakiest Moving Average Read More »
“It’s not the daily increase but daily decrease. Hack away at the unessential.” -Bruce Lee Quitting is not always the wrong thing to do. There is a time when you have to decide what you want and go get it, you do not stop your journey to your destination but
Quitters Sometimes Win and Winners Know When to Quit Read More »
You have to love trading to do the work that takes you over the hump to winning. Successful traders are not born, they are built through hard work and discipline. Trading is not complicated, discipline, perseverance, risk management, passion, and a winning method that fits your personality is all you
If Will Smith Was a Trader This Would Be His Advice Read More »
Ever have that day when you were 100% sure about a trade. You just could not lose, the stock was a real buy, it had already fallen a great deal and it could not possibly fall any farther. So you waited and then plunged in, you couldn’t lose so why
Why Apple Bulls Got Hurt Read More »
“Plans are plans until they aren’t. Don’t confuse trading ideas with prophecy. You don’t know the future. Unless you cause it.” -Curtis Faith This morning I went in very biased about buying Apple long, my mind was clouded with the support level of the 50 week moving average holding up
How I was Wrong but Still Made Money Today Read More »
I do not look at weekly charts much but when I do it is for a very important key support level. When under the 200 day moving average it is more difficult to find obvious support levels for stocks, most traders look at trend lines or price levels, I look
Here is THE Ultimate Apple Price Support Level Read More »
Well it was a wild day today, shorts did very well, longs got clobbered, traders coming into today in cash were pleased with their position unless they went bottom fishing. It was a strange 24 hours with futures gyrating over night deep in the red then it recovered
Todays Chart Action:What I see Read More »
The biggest question I have received today from everyone, new traders, friends, family, even my wife is “What will happen to the stock market if Obama wins?’ or “If Romney wins will the market rally?” How should we trade the election results? …..Don’t. Do not let the results color your
How to Trade the Election Results Read More »
As the U.S. presidential election approaches the market is in “wait and see mode” with key resistance and support levels. While it is possible to trade these ranges for those that have the desire to be active there is always the option of waiting in cash for a trend to
We are Range Bound & Here’s the Range Read More »
Let’s get some perspective here before we believe Apple is going out of business or that the stock is going to $300 or a 6 P/E ratio. The indexes are holding up very well, the $QQQ is at the 200 day support, The $SPY is holding up at $140 like a champ, and
My Key Chart Levels for APPLE Read More »
In trading, activity alone does not make money, the right activity at the right time is what makes money. Many times the right thing is to do nothing. Over trading is one thing that causes traders to lose money. You can not make money every day in every trade. Every
The 4 Things A Trader Has To Know Read More »
I love trading liquid weekly options, they are amazing tools if used correctly. Weekly options give a trader leverage, risk management, asymmetric trades, and the ability to make triple digit returns on capital at risk. I know of no other tools that have such upside and limited downside. And many of the weekly options like SPY, IWM, QQQ,
The Power of Trading Weekly Options Read More »
Do you really, really, want to be a trader? There is no secret system, method, or guru that will make you a successful trader. Trading is work, trading is taking the hits, managing risk, and learning how to navigate the markets you trade. It is no different than any
Caffeine For the Trader’s Soul Read More »