Here are seven lessons from Jesse Livermore who is considered by many as one of the greatest traders who ever lived. Lesson Number One: Cut your losses quickly. As soon as a trade is contemplated, a trader must know at what point in time he’ll be proven wrong and exit a position. Risk management should […]
The Wisdom of Jesse Livermore Read More »
What were the greatest trades of all time? Who made them? Here is a list of the who, what, when, where, and how of the greatest trades that were ever made. While the risk management while executing many of these trades is not what many traders would want, we can see many of these as
The Top Ten Trades of All Time Read More »
Two of the biggest obstacles in trading are managing risk and developing a winning method. However, even if you control your risk on every trade and have a methodology that is a winner, you can still be tripped up by your own mind. Even when effectively managing risk, you will probably lose 10%
The 10 Keys to Winning Mentally Read More »
I believe the key to this market will be in how the SPY trades from here as a proxy for the market. The SPY is currently range bound after the gap up day. While the DIA and QQQ ETFs have both undercut the lows of the gap up day while the SPY has not. A
My Thoughts about the Market Action Read More »
Do you use moving averages in your trading? If not you are missing out on a very simple tool for finding support and resistance levels along with possible trend identification. It is very interesting to lay a 50 day and 200 day simple moving averages on to a chart for the past year. You will
10 Things Traders Need to Know about Moving Averages. Read More »
I did this interview back in June of 2012. U.S. Investing Champion Mark Minervini who was featured in Jack Schwager’s book Stock Market Wizards was generous enough to grant me this interview. Let’s listen and learn from the man who has returned consistent triple digit returns in the
My Interview with an Official Market Wizard Read More »
The weakest part of any trading method is the trader themselves. There are many, many, robust trading systems and methods that do make money in the long term. The problem is the trader having the discipline and mental toughness to trade one of them consistently. The vast majority of time it is not a system
The Weakest Part of any Trading Method is Read More »
“We attempt to make order out of the market and find reasons for everything. This attempt to find order tends to block one’s ability to go with the flow of the markets, because we see what we expect to see rather than what is really happening.” -Dr. Van K Tharp The day a trader gives
Is the Money in Chart Reading or Opinions? Hmmm… Read More »
“The Holy Grail is not what you would expect it to be. It is something that is different for each person. It’s a hidden secret you have to discover for yourself but it is obvious~ once it is realized.”- David Mobley, Sr. Most new traders go on a quest for “The Holy Grail” of trading.
The Five Mini-Holy Grails of Trading Read More »
These questions were sent to me by a very intelligent, hard working, professional trader. She agreed to let me share them with my blog readers. I think some readers may find value in the answers based on my own journey and learning the hard way. 1. On your weekly puts from Thursday January 3rd, only
Here are 13 Questions About my Trading Answered Read More »
My over all outlook after the fiscal cliff decision and the gap up is bullish. We need to hold price action of the major stock indexes in the range that has developed over the past three trading days after the gap. The gap is bullish and I am not a big believer in an immediate
A Tale of Two Stocks Read More »
The very first rule we live by is: Never risk more than 1% of total equity on any trade. -Larry Hite I try very hard not to risk more than 1% of my portfolio on a single trade. –Bruce Kovnar One of the most important lessons that a trader must follow to ensure his long term
Risk Management for the Trader in 1 Lesson Read More »
Many new traders and new investors make the mistake of looking for and buying cheap stocks. Do not fall into the cheapskate trader trap, instead just pay for quality. Cheap stocks are cheap for a reason, they vast majority of the time they are junk. Quality stocks rarely if ever trade for under $15
Don’t be a Cheapskate Trader: Pay for Quality Read More »
Here are two trading book reviews that I wrote for Amazon. These are two books that contain the principles that can take a reader to the next level in their trading. These books are based on the thousands of hours that Michael Covel put into studying the best money managers in the world through interviews
Two Trading Book Reviews, Two Free Kindle Editions Read More »
While I am aware that this was not a scientific poll, I do believe it reflects who traders find helpful in the twitterverse. I am familiar with almost everyone who made the top 25 in voting. You will notice that the top picks were also the ones that usually contribute the most in charting for
Top 25 Most Helpful Traders in the Twitterverse Read More »
Well all the stock market has been about the past month is the fiscal cliff. Uncertainty causes volatility and confusion as the market tries to price in the future. I believe the market has a deal currently priced in. How? The people that believe there will be a deal are already in. The people that
My Thoughts on the Fiscal Cliff Read More »
While 2012 was a great trading year for me with a +53% return on my trading account, but it should have been much better. My equity peak was a +75.3% return and I spent most of the year churning with around a 60% return. My biggest faults were being to aggressive with position sizing and
My 5 Trading Resolutions for 2013 Read More »
In reviewing my blog posts for 2012 it was interesting to see what posts my readers took the time to give a facebook like to. While I may have 1000 readers a day it is a thumbs up when someone takes the time to ‘like’ the post. I take that as they really like it
My Top 10 Most Liked Blog posts of 2012 Read More »
This blog article was originally a post from Rafael Barbieri in our trading group on facebook. Thank you Rafael for such a great share! This is not being posted because I am a Patriots fan. Tom Brady had a press conference where much of what he said seems to fit with successful trading. (I agree
If Tom Brady was a Trader….. Read More »
“I don’t think you can consistently be a winning trader if you’re banking on being right more than 50 percent of the time. You have to figure out how to make money being right only 20 to 30 percent of the time.” -Bill Lipschutz “Here’s what I believe: The markets are not random. I
My Favorite 10 Market Wizard Quotes Plus a Schwager Video Read More »