Back tests are views into historical price action, they are not crystal balls that show us how profitable a system will be in the future. The best use of backtesting is as a filter to test your ideas and see if they would have worked out in the past before you try to trade them […]
Things That a Back Test Does Not Show Read More »
Trading is not all fun and games. Traders do not make money on every trade, most don’t even make money on half their trades. It is not like other careers, jobs, or hobbies where you work and then get paid automatically for your time regardless of performance. A trader’s pursuit is more like the life
The Top 10 Pains of Trading Read More »
Anger – Leads to revenge trading and trying to get even after a losing trade. Fear – The inability to take an entry or hold a winner in a trend due to the fear of a loss after entry or a winning trade giving back profits. Disgust – Can lead to a loss of confidence
The Dangers of Emotional Trading Read More »
This is a Guest Post by Alex @MacroOps which was posted originally at: Current Target: Populism & Europe’s False Trend This post is republished here with permission. One of my favorite sci-fi series is The Foundation Trilogy by Isaac Asimov. The book was first published in 1951 and is a grand “space opera” that takes place
Populism & Europes False Trend Read More »
$SPY has been inside a trading range since February 14, 2017. $SPY up trend is still on place with all long term moving averages still turning up. Short term moving averages are turning sideways inside this trading range. All small dips continue to be bought. The overnight 100 point Dow futures drop recovered Friday. When
10 Chart Facts on $SPY: 4/9/17 Read More »
Diversification, Adaptation, and Stock Market Valuation Medical Marijuana Is Getting Its First ETF, and Investors Couldn’t Be Happier Correcting thru time vs price? … “S&P 500 Technical Update: Resilience” The Metagame: How Bill Belichick and Warren Buffett Play a Different Game
Top Trading Articles: Week 4/8/17 Read More »
if there was a tax on the phrase "breaking news" we could balance the budget — StockCats (@StockCats) April 7, 2017 algos trying to decide if WWIII is bullish or bearish — StockCats (@StockCats) April 6, 2017 in an alternate universe, the unemployment rate is the percentage of people that don't have jobs — StockCats
Top Trading Tweets: Week 4/7/17 Read More »
This is a Guest Post by: Colibri Trader @priceinaction. This article is used here with permission and originally appeared here on ColibriTrader.com. Bollinger Bands – Or Why They Are So Popular “A man is rich in proportion to the number of things he can afford to let alone.” Henry David Thoreau Bollinger Bands are
Why Bollinger Bands Are So Popular Read More »
In trading more action and time spent watching screens is not necessarily rewarded with more profits. The majority of the time trading every day and watching every tick in price is not rewarded by making more money. Ed Seykota had some of the best annual returns for decades and traded strictly with end of day data. Nicolas Darvas
Trading: When Less is More Read More »
“The game taught me the game. And it didn’t spare the rod while teaching.” -Jesse Livermore Trading Losses: There are two types of losses, one loss is caused by the market simply not being conducive to the profitability of your system. The other loss is due to your lack of discipline, causing your system to
5 Things That Educate Traders Read More »
This is a Guest Post by Alex @MacroOps which was posted originally here: Markets as a Range of Reasonable Opinions and is reposted here with permission. The following is from The Philosopher in Drobny’s classic The Invisible Hands (emphasis mine): Some people can trade markets using only numbers, prices on a screen but this approach does
How to Trade Market Opinions Read More »
The long term up trend remains in place with price over all key moving averages. Last week price broke over the 10 day EMA signaling the possibility of another leg up on the short term up trend regaining new all time highs. The MACD remains under a bearish crossover showing the slowing of upside momentum as the
10 Facts About the $SPY Chart: 4/2/17 Read More »
21 Ways To Improve Your Trading System The Difference Between a Prediction and a Probability All the Fees in the World Red-Hot Quant Funds Cool Off At BlackRock, Machines Are Rising Over Managers to Pick Stocks
Top Trading Articles: Week 4/1/17 Read More »
If you ever want to net large returns you must learn to stay calm and in control while in immense pain. This is the real "secret" — Micah Yo (@micahhyo) March 30, 2017 Guys, imagine being a troll. Waking up and attacking others for your lack of effort in life. Every hour, every day, every
Top Trading Tweets: Week 3/31/17 Read More »
This is a Guest Post by: Colibri Trader @priceinaction. This article is used here with permission and originally appeared here on ColibriTrader.com. ATR Indicator Explained “Letting your emotions override your plan or system is the biggest cause of failure.”, J. Welles Wilder After reading this article on the ATR indicator, a trader will find out that: Originally
The ATR Technical Indicator Explained Read More »
It surprises people on twitter when they start a big passionate argument about why my trade is wrong and I just say, well if I am wrong I will stop out with a small loss. No big deal just one of my next 100 trades. Many have trouble even comprehending this concept. If you are managing
You are Not Nostradamus Read More »
Many new traders wonder how to develop their own entry and exit signals and build their own trading systems. I wanted to share a few sites that provide basic backtesting functionality on a web based platform. These provide enough parameters to begin to get an idea of how different signals perform in different timeframes. First
Four Free Backtesting Sites Read More »
This is a Guest Post by Alex @MacroOps which was posted originally at: Bill Ackman Finally Pukes: Beware Of False Narratives and is posted here with permission. A year ago we wrote about why Bill Ackman should learn a bit of technical analysis. We weren’t suggesting he become an Elliott Wave nut or anything, but that he
Bill Ackman: A Lesson in False Narratives Read More »
The long term uptrend is still in place. Short term resistance has become the 10 day EMA. Short term support is currently the 50 day SMA. A break out and close on the other side of one of these levels could signal the next trend up or down. RSI finally dropped below the neutral 50 to
10 Facts About the $SPY Chart: 3/26/17 Read More »
Is This The Best Trading Book Ever Written? Options Indicate Disenfranchised Traders Defense Wins Championships Being Lazy Is the Key to Success, According to the Best-Selling Author of ‘Moneyball’
Top Trading Articles: Week 3/25/17 Read More »