These is one of the key trading lessons that really helped me understand risk management long ago. This is one of the keys to successful trading, viewing risk as your metric for trading. This article was originally published on the Van Tharp Institute’s Web Site. Risk and R-Multiples Knowing when you’re going to exit a […]
A Market Wizard on Risk Management Read More »
Traders repent of your sins. At least that’s the message that Ruth Barrons Roosevelt preaches in her book “Overcoming 7 Deadly Sins of Trading“. If you want to be successful in trading you must overcome the desires of the ego and the quest to be right. You must give up your own endless pursuit to prove
Overcoming the 7 Deadly Sins of Trading Read More »
Here we go coming up on the test of the 50 day simply moving average in the market measuring SPY ETF. Bottom fishers and swing traders are waiting to buy at this level that has held up well for the whole year. Many long term trend followers are waiting to sell with a confirmation
Why Tomorrow Could be Judgement Day for $SPY Read More »
Have you ever heard of the legendary Turtle traders? Millionaire trader Richard Dennis set off to find out if traders were just born to trade, or if they could be trained to be successful in the markets from scratch. The answer? If they could follow rules they could be successful. “I always say that
The Legendary Turtle Traders Read More »
There are many reason I bought $SPY puts as it broke down Friday. The chart is screaming at me to go short, I had to listen. I entered short as it fell to the $164.60 level with my initial stop at the 10 day sma believing it would lose $164 which it did quickly. Going
The Ten Bearish Things the $SPY Chart is Telling Me Read More »
Finally for all those investors and traders trying to implement the CAN SLIM investment methodology by using William O’Neil’s book “How to Make Money in Stocks” along with Investor’s Business Daily, here is your users manual. Matthew Galgani has done an excellent job with this book by both keeping it simple and easy to read
Here is The NEW CAN SLIM Instruction Manual Read More »
As my blog readers and twitter followers know, I have been concerned that this market was getting toppy after I went to cash at the close on the day we made our all time high at $169.07. Then we failed to get over the 10 day sma for five out of six trading days
Ten More Reasons Why I am even More Bearish Read More »
A big thing that trips up new traders is they get an entry signal at a breakout or a bounce off a key moving average like the 50 day simple moving average but have trouble quantifying how to let the it run if it is a winner or cut the loser short if it goes
A Market Wizard on Moving Averages Read More »
The gap up failed yesterday to hold. The gap down today held. The 5 day ema crossed under the 10 day sma yesterday. Over the past two days volatility has expanded to trading in a $168-$164 price range. Seven straight days of ugly bearish candlesticks. In the past 5 days price has been under the
8 Reasons Why I Am Getting More Bearish Each Day $SPY Read More »
We are at an interesting crossroads in the market. The long term up trend is still in place but we are over due for a pull back to either the 21 day or 50 day sma just to get some price consolidation from this extension so far above the 200 day sma. There is
Key Areas to Watch this week on 3 Charts. Read More »
Do you use moving averages in your trading? It is very interesting to lay a 50 day and 200 day moving average on to a chart over a year time frame. You will begin to see patterns develop. Bounce off the 50 day, a last chance for support at the 200 day etc. Each index,
10 Facts About Moving Averages Read More »
When being a trend trader you never know where the big profits are going to come from. You take your entries and follow your rules and let the market tell you what to do next. Here is a simple trade I did in April using a conservative tax deferred trend following account that is
My Personal Example of a Simple but Effective Trend Trade $SPY Read More »
“Mr. Seykota himself has put together a money management track record with returns of roughly +60% net of fees over the three-decade span of his trading career…” -Futures Magazine Ed Seykota, first featured in the book Market Wizards has one of the best records of all time for any trader. Ed Seykota’s record is as
This Guy Is Possibly the World’s Best Trader…. Read More »
Making money in the financial markets is not only challenging but just surviving an account blow up is also a win for many new traders. There is one thing that ultimately determines your success in the markets. It is not your stock picking skills, your trend following or even trading a robust method. The dividing
The Biggest One Thing that Separates losing traders from the Winners Read More »
All trading methods come down to one very simple basic thing: we are all in search of capturing the trend correctly. Long term trend followers are trying to be right about the long term trends using mechanical systems. Buy and hold investors are trying to be right about the stock market indexes and mutual
ALL Types of Traders are after the SAME thing…… Read More »
There are seven things that I believe are pretty common in the successful traders I have known, read about, and seen in action. Whether it is stock trader Nicolas Darvas in the sixties, commodity trader Ed Seykota in the twentieth century, or Jesse Livermore at the turn of the last century, many of
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Who is Dan Zanger? Dan Zanger is the modern day version of Nicolas Darvas. His mother Elaine loved the stock market and Dan would often watch the business channel with her. One day in 1978 Dan saw a stock explode across the ticker tape at the bottom of the screen hitting $1. He made
An Interview with a Modern Day Nicolas Darvas Read More »
The $SPY has spent 19 days out of 20 closing above the 5 day ema and 19 days straight above the 10 day sma. The 50 day has held in this index for this entire year, if any bears are wondering, this is what an uptrend looks like. I went fully long in my long
Here is What I See On These Three Charts Read More »
“Trend followers use reactive technical analysis. Instead of trying to predict a market direction, their strategy is to react to the market’s movements whenever they occur. This enables them to focus on the market’s actual moves and not get emotionally involved with trying to predict direction or duration.” -Michael Covel/ Trend Following You Might be
You Might be a Trend Following Trader if….. Read More »
This blog post is an excerpt from my book New Trader, Rich Trader. “The funny thing is that the principles you have been teaching me for trading success have also been helping me in other areas of my life. I think much more clearly about many parts of my life now. My journal has expanded
Why Trading & Life have the Same Winning Principles Read More »