Good traders HATE draw downs in capital, they do everything they can to limit the severity of their draw down in correlation with the expectations of returns. Good traders HATE it when they break their discipline and take a bad entry out of anticipation or personal beliefs, they like taking […]

In baseball the best hitters are disciplined enough to wait for the best pitches only before they swing. The best hitters are picky and have developed the ability to know what the best pitches are and wait for them. Regardless of physical strength the true success of hitters in baseball comes from the ability to

        Trade Like a Casino ‏@TradeLikeCasino:  Trade Like a Casino: Find Your Edge, Manage Risk, and Win Like the House (Wiley Trading)  “If we are properly managing the risk and adhering to a positive expectancy model, the act of trading a position should be boring.” – Richard Weissman  Michael Covel ‏@Covel:  Trend

                              “If there was easy money lying around, no one would be forcing it it into your pockets.” – Jesse Livermore There is so much garbage out there concerning trading online and the temptation for easy money that many new traders

                     Ten Things A Trader Has To Know You have to know your own tolerance for risk and draw downs in capital. Not what you believe is your risk tolerance but what you can bear in reality when your real trading capital is down 5%, 10%

Last week was very choppy and sloppy and the market could hit a signal intra-day then move fast. Equities as a whole are not under accumulation in 2014 so far they are only be traded in ranges as an asset class.  $SPY and $SPX are still negative on the year but have provided plenty of

                  The Pro’s Process – Richard Weissman Determining Optimal Risk Optimal Position Sizing Reduces Risk A Dozen Things I’ve Learned from Nassim Taleb about Optionality/Investing What is max pain or option pinning? 1 MIN READING: The fisherman and the businessman Triple Threat March OPEX + What SPY

First of all, you really should not even be trading your very first year you start in the markets. The first year should be spent finding out what the right questions to ask even are not trying to beat professionals at their own game. Most new traders don’t survive their first year because they trade

                      Ten Simple Ways To Trade Better It is crucial to trade quantified high probability entry signals with good risk/reward skewed in your favor not your emotions or your opinions. When you enter a trade decide where you will stop out of the trade if

                            Ten Signs Your Trading Is Getting Better Your losses are getting smaller and smaller. Your losing streaks are not as long as they use to be. Your draw downs are not as big as they use to be. You are very

  The 70 RSI level is the intra-day resistance here. $190 $SPY will also likely be a key resistance if we get there. Above the $SPY $190 or 70 RSI we would be parabolic but the odds are against it. The risk/reward is in favor of the downside but momentum after the gap favors a