“There is nothing more important than your emotional balance.” – Jesse Livermore While taking losses is always uncomfortable, Taking them based on a predetermined exit strategy takes away some of the mental pain. Cutting losses when you know you are wrong also limits the size and extent of the loss and the severe pain of […]
5 Keys to the Mental Game of Trading Read More »
I am long Apple and Google going into Monday morning via in the money weekly options. I will not be one of those people fighting this tape. We are in an up trend, this is a bull market. Prices are going up not down, yes we could reverse, but we
My Thoughts, My Charts, My Picks Read More »
There is a big difference between bad traders and good traders, here is what I think separates one from the other: Bad traders continually have the desire to short the hottest stocks with the strongest momentum. What is their reasoning? “It can’t go any higher, this price is ridiculous.” Do
The 5 Mistakes Bad Traders Make Over and Over and….. Read More »
On this Labor Day when many are off work for a paid holiday I am working, looking at charts, planning, thinking and reading. Pondering what Tuesday trading may bring. Trading is NOT the path to easy money nor free money. Trading is work and a profession like any other, traders
10 Ways to Labor Towards Trading Success Read More »
Discretionary Traders Vs Systematic Traders In the classic Star Trek movies and television show Captain Kirk believed in his abilities to make the best decisions in the circumstances he found himself in. Mr. Spock contrasted against Kirk’s leadership style by using logic and reason along with probabilities of success to make the best
Do You Trade like Captain Kirk or Mr. Spock? Read More »
Fish see the bait, but not the hook; men see the profit, but not the peril. Chinese proverb. Stock options are not lottery tickets, chips in a casino, or a path to easy street. They are tools for the transference of risk from one person to the other. When trading options you must understand where
Stock Options: 10 Ways to Move From Peril to Profits Read More »
This interview with master trader Chris Kacher first appeared in Your Trading Edge magazine. Like his colleague Gil Morales, Chris is a protégé of William O’Neil, the legendary investor and author of ‘How to Make Money in Stocks’. Along with Morales, Chris is one of the few to have traded O’Neil’s own funds as an
Ten Rules for Trading Pocket Pivots Read More »
I believe a surprisingly dangerous way to play options are to sell covered calls. This may sound strange to most option traders as it is the most safe convenient ways to use options for long term holdings. Many Individual Retirement Accounts (IRAs) will even allow participants to write covered calls on their stock holdings.
A Dangerous Way to Use Options Read More »
If one of the greatest traders in history told you how to buy and sell the best stocks for the most profits would you listen? Well we have a chance to do just that with William J. O’Neil’s book “How to Make Money in Stocks”. His lifetime of research on the precise fundamental and
Ten Ways to Trade Like the Legendary William J. O’Neil Read More »
Their is one huge difference between the winners and the losers in the market. New traders tend to go ‘all in’ on trades they are just sure will be winners. If a new trader wants to be around long enough to be a rich trader they better manage their risk per trade. Here is a
The Trader’s Fallacy: Big Risks=Big Long Term Profits Read More »
The sooner traders learn to carefully manage risk, the better off they will be. So many new traders come in with only the thoughts of profits dancing in their heads. This is equivalent to a football team only focusing on scoring points, and not planning their defense. In trading, you must play both sides
Trading: The Difference Between Playing Offense & Defense Read More »
Today, as I look past the fireworks and cook outs and think about what this July 4th holiday in America is really all about: independence for the United States from Great Britain. The colonies sought independence from taxation without representation, independence from a King, and freedom for the states to profit from its own labors
10 Things that Great Traders have Declared Independence From Read More »
Many unfamiliar with trading, think it is gambling, or that we will lose all our capital on one trade. These folks don’t understand the basic principle of a stop loss. Rather than hold a stock from $100 to $0, a good trader will be out the moment that price confirms that they were wrong. For a day trader,
Asymmetric Trading Read More »
There are many trading principles that are common among successful traders. It is important to learn their habits so we can make money. These 10 things can improve your results immediately. If you have been trading for awhile, but have not been profitable, these tips can help you stop losing money. Start trading the price
Start Doing These Things To Make Money Read More »
My trade going into the Greek elections is to stay in cash as I have been almost all week. I am not disappointed this week I will let the day traders make their money in this market and watch the bears get mauled by central bank interventions while I sit
My Trade Going into the Greek Elections Read More »
Ever have that day when you were a new trader and 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
The Most Dangerous Trade Read More »
A down trending market is not the same as a range bound market or a bull market.The loss of the 200 day moving average and it not being retaken by the close is a big red flag for the potential beginning of a bear market. Bear markets do not have defined supports they can fall
10 Tips on How I Trade a Downtrending Market Read More »
The pain of losing is something that many traders can not bear. When you get into 10 or 15 straight losses then the lack of risk management will knock a trader out of the game. Even if you have risk management in place many times the mental pain and anguish
A Traders 10 Point Checklist for a Losing Trade Read More »
What if you could read the principles for success for some of the world’s greatest traders? Well you can, here is how author Jack Schwager summed up the the similarities of the ‘Market Wizards’ he spent years interviewing in his second book. The following is an summarized excerpt from Jack D Schwager’s book,
The 42 Keys to Market Wizardom Read More »
This book may be one of the greatest trading books ever published. Jack Schwager set about interviewing some of the world’s top traders in 1988 and the principles these traders were kind enough to share has stood the test of time. These were not one year wonders these traders
Market Wizards in a Nutshell Read More »