This is a Guest Post by Alex @MacroOps which was posted originally here: High Quality Trading Is Episodic, Not Continuous and is reposted here with permission. There’s two types of market returns. Alpha and beta. Beta is what you get for diversifying and passively holding the market. Alpha is the opposite. It requires an edge, […]
Good Trading Is Episodic, Not Continuous Read More »
So many people will quickly judge traders and investors as gamblers. In many families you can’t discuss trading openly without judgmental stares, rolling eyes, and disapproval. The general public does not understand that on a deeper level everyone is a trader in some way. We trade one thing in order to receive another thing. Not
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It is interesting when looking through the past few years of my trading activity that my profitability came from the longer term trades. The profits were in the trades that caught trends of weeks and months not a trade for a day or two. I have found the less I trade the more money I
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This is a Guest Post by Alex @MacroOps which was posted originally here: and is used with permission. The Difference Between Great Traders and Good Traders: The Art of Totis Porcis The following is an excerpt from Barton Bigg’s book, Hedgehogging, where he relates a conversation with “Tim”, a successful macro investor (emphasis mine).
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This is a Guest Post by AK of Fallible AK has been an analyst at long/short equity investment firms, global macro funds, and corporate economics departments. He co-founded Macro Ops and is the host of Fallible. Since the mini-crash in markets a few weeks ago, the S&P 500 has had a sharp V-bottom bottom rebound. But the question
Is This Market Rally Real Or Fake? Read More »
“There’s a million ways to make money in the markets, unfortunately they’re all very difficult to find.” – Jack Schwager Profitability in the financial markets is based on math not predictions and opinions. Here are the ten mathematical paths to profitability: Have a high winning percent where your winning trades and losing trades are similar
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For each trade you have to manage five things: Entry: Your trade entry has to be based on a quantified signal that will put the odds in your favor of the price moving in the direction to make you profitable. Stop loss: You have to decide on the level that price should not go if the trade
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This is a guest post by Dakota Findley, he has been published on a wide ranging spectrum of respected sites. His writing inspirations are drawn from the areas of saving/making money, goal setting, technology, investments and beyond. You can follow him on twitter at @DakotaFindley17. When to Start Tinkering With Your Trading Strategy Think its time
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This is a Guest Post by Chrissy Williams. 4 Trading Steps That Will Change Your View of Financial Freedom When it comes to the term “financial freedom,” this can have all sorts of meanings to different people. Most individuals look at it as more than having access to money but also the freedom to spend
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This is a Guest Post by: Colibri Trader @priceinaction. This article is used here with permission and originally appeared here on ColibriTrader.comDrop by drop the river is formed. This morning I realized that the kitchen faucet is leaking. Have you ever experienced one of those moments when something small from your daily lives brings memories or
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Trading Rule #2: Your trading system must be built on quantifiable facts not opinions. Very few new traders take the step from trading opinions and predictions to trading actual price action and signals. Amateurs take trades based on feelings while professionals have fact based reasons. A signal is a quantifiable reason to take a trade
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This has been shared many times in many forms online and I can not find the original source but it is a great analogy on how bubbles work as people buy things far above what they are worth until they run out of buyers at higher prices. It is the game of the greater fool.
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“The right trading behaviors start as rules and evolve into habits.” – Brett Steenbarger Across sports, business, and entertainers the top performers are not the ones that have to think through their every action. The top performers have trained themselves to react at the right time and do the right thing in each situation. Champions
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A trading tool is anything that has a function that helps you be a profitable trader. Back testing software is a tool that helps you see what type of price action trading signals were profitable in the past price data. An entry signal is a tool that tells you when to get into a trade
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Screen time is the amount of time you sit in front of your computer monitor and watch the market price action. In today’s mobile world screen time can even expand to mobile phones and tablets if we check in on charts and price quotes when we are away from our desk top computers. Screen time
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There are many things traders and investors should be thankful for this Thanksgiving. Let’s stop for a second and count our blessings, because surely stock market operators of the past would be envious of our access to trading tools and market environments. Everyone has access to low discount broker commissions. You can trade for less
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Here are seven pieces I would give to my younger self if I could travel back in time 25 years. Slow down, you don’t have to be in a rush to put real money at risk. The market isn’t going anywhere. Read plenty of trading books before starting to trade. It is money well spent
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Here are the seven most common errors traders make in a bull market. They wait for a correction to get long that never happens. So they end up missing a big part of the up trend. They do not get long with a big enough position size or enough leverage so they end up underperforming
7 Errors Traders Make in Bull Markets Read More »
There’s a lot.. but one the worst things is have too much success too early and get overconfident. — Drew Marshall (@DrewDoesBiz) October 31, 2017 Believe the macro bear is making the same trades he’s preaching. — Graydon Britton (@graydonbritton) October 31, 2017 Buy DRYS — Rjwalz (@Rjwalz666) October 31, 2017 Sell naked call options.
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Trading when the odds are in your favor is trend following. Trading with the odds against you is gambling. Many of the same people that think trading is gambling or that the options, futures, and stock market are too risky are the same that will not hesitate to buy a Powerball ticket, scratch of f
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