Survivorship bias, or survival bias, is the logical error of concentrating on the people or things that “survived” some process and inadvertently overlooking those that did not because of their lack of visibility. This can lead to false conclusions in several different ways. – Wikipedia There is survivor bias in looking at trading and investing […]
Who Really Beats the Market? Read More »
My trading consists of signals for trading existing trends. A stock or ETF breaking out to all time highs or breaking down to all time lows after being range bound is one trend trading entry signal to go in the direction of the break out. I also use signals to buy off key supports levels in longer term
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Trend Followers make money during market trends not because they predict anything but because they buy what is going up and they sell what is going down. They discover ways to measure and react to trends based on historical price patterns . Trend traders identify a trend and enter a trade with the predefined risk of
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This is a Trend Following Guest Post by Michael Melissinos Originally Posted on his Blog. Trend Followers don’t shy away from losses. Losses provide valuable feedback that helps them improve as traders. Sometimes, losses occur despite solid strategies and perfect execution. Such is life when participating in markets. Some trend followers break down, change their approach and
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This is a Trend Following Guest Post by Michael Melissinos Originally Posted April 19, 2016 on his Blog We can approach the markets many different ways. In this article, I’d like to illuminate the trouble with holding onto our investments too tight — that is, not giving them the necessary rope to fluctuate and evolve into a big trend.
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This is a guest post from Raj Patel, @LucidTrend. You can see more of his work at www.Lucid-Trend.com What is the value of a weather report? We watch weather reports for two reasons: First, we can plan ahead and use our time wisely. You don’t want to plan a trip to the beach if there
Set Your Sails to Catch the Wind Read More »
I have been active in the stock market in some form for over 20 years. I have made money in several different ways, looking for a good fit for my personality that allowed me to accomplish my life goals. I started as a mutual fund investor and evolved into a trader of stocks and options. My trading
Investing Habits 101 Read More »
Author Andreas Clenow has done an outstanding job writing a landmark book for readers interested in systematic trend following of futures. He gives basic systematic trend following strategies with entry and exit parameters, position sizing, and shows the watch list for futures markets needed for proper diversification. He explains systems based on breakouts and moving
Book Review: Following the Trend Read More »
This is a guest post posted here with the permission of Olajide Taiwo Fsgcm Aicpm of Lakazy Capital THE TREND FOLLOWING PROFITS COUNT Think of it this way: Performance data examples from the great trend followers could be the foundation of every college finance class. When you show up on the first day, instead of
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In 1959, Nicolas Darvas beat Wall Street when he traded his way from $30,000 to $2.25 million in 18 months. He did this while traveling around the world on a dance tour, while using telegrams for end of day prices, and a weekly Barron’s Magazine. How is this possible? His ten powerful principles: He traded the long side
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Here are two interviews I did with Trend Following expert and author Michael Covel a few years ago. Interview #3 has been completed and will be released soon. I received a lot of positive feedback from these and I hope you find them helpful in your trading journey. https://www.youtube.com/watch?v=uW34HL0Nl1c https://www.youtube.com/watch?v=r-3hhcupitI
My Two Michael Covel Interviews: Read More »
The principles that successful trend traders use to make money in the markets is difficult for the average investor or trader to understand. Readers unfamiliar with systematic trend trading have a hard time trading for profitability without trying to predict where price will go. Most successful trend traders have preset, planned entries that are
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Chart courtesy of stockcharts.com The Elliott Wave Principle is a from of technical analysis that some traders use to analyze financial market cycles and forecast market trends by identifying extremes in investor psychology, highs and lows in prices, and other collective factors. Ralph Nelson Elliott (1871–1948), a professional accountant, discovered the underlying social principles
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A few key points to remember when analyzing market movements: Uncertainty causes much of the volatility, as neither buyers, sellers, or holders have the majority conviction to control the trend. Unexpected good news causes the market to (generally) go up as the new situation is priced in. Expected good news is usually sold into when
Understanding Market Movement Read More »
“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” – Unknown When I was a teenager, I was fascinated with compounded return tables. They seemed like magic to me. I knew that at some point in the future, I could build
Magic of Compounding Returns 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 »
Since the whole world is waiting on Apple earnings I felt I had no choice but to tell my blog readers how I see it. I have good news and I have bad news, which would you like first? Okay I will give them both to you straight. The bad
$AAPL The Good News & The Bad News Read More »
“It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.” -George Soros One element of trading that is over looked as traders chase hot stocks, trends, and chart patterns is the importance of taking
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Charts are my best mentors and moving averages are my best teachers. Entering into Monday Morning I am long Apple with an in the money $610 strike weekly call option but I am hedged with an out of the money $620 weekly put. Like me many traders see indecision
$AAPL My Indicators & My Trading Plan Read More »
Every new trader loves to focus on entries, hot stocks, what to buy, what stock might double, and how long they want to hold their stock. Stops are a very neglected subject with new traders, the best shot many new traders give to an exit strategy is either a price target or a quick scalp
Where Do I Get In and Out of a Trade? Read More »