For 36 trading days we have been below the $136 price in the SPY, there have been NO buyers above this level, only sellers waiting to take profits. Our first bounce off support after going into a down trend was at the 200 day moving average, not much time for […]
What a Range Bound Market Looks Like Read More »
The hardest thing about trading is not the math, the method, or picking the right stock, currency, commodity, or futures contract. The most difficult thing about trading is dealing with the emotions that arise with trading itself. From the stress of actually entering a trade, to the fear of losing the paper profits that you
A New Trader’s Guide to Managing Emotions Read More »
Trading in the stock market is like being in a Monopoly game. If there are ten people playing, one person is likely to take everyone else’s money. Trading functions much the same way, with 10% of traders becoming profitable, while the other 90% lose or break even. After studying successful traders from the books by
18 Habits of Rich Traders Read More »
After the hundreds of trading books I have read and spending thirteen years actively managing my accounts I still consider Jack Schwagers Market Wizards Series the best of the best. Why? His trading books are not based on theories, opinions, predictions, or beliefs, he goes down a completely different path.
Interviews with the Trading gods. Read More »
Trading is not a path to easy money, only about 10% of traders are profitable in the long term and I assure you that you will be playing against professionals and they know how to win. No one goes up to Michael Jordan and asks him how they can make
The PATH to Trading Profits Read More »
Investopedia explains ‘Whipsaw’ A condition where a security’s price heads in one direction, but then is followed quickly by a movement in the opposite direction. The origins of term is derived from the push and pull action used by lumberjacks to cut wood with a type of saw with the same name. There are two types of
How A Market Wizard Manages Whip Saws in 6 Easy Steps Read More »
The very first rule we live by is: Never risk more than 1% of total equity on any trade. -Larry Hite (Market Wizard) I try very hard not to risk more than 1% of my portfolio on a single trade. –Bruce Kovnar, (Market Wizard) One of simplest lessons that a trader can learn to ensure long term
Risk Management for the Trader in 1 Lesson Read More »
There are many trading principles that are common among successful traders. It is important to learn their habits so we can make money. These 10 things can improve your results immediately. If you have been trading for awhile, but have not been profitable, these tips can help you stop losing money. Start trading the price
Start Doing These Things To Make Money Read More »
I firmly believe that what truly separates the 10% of winning traders from the 90% that lose is the trader’s mindset. The vast majority of traders think they want to trade until the losses hit them and they can’t handle it and end up quitting entirely. I believe these ten principles separate the quitters from
How Winning Traders Rebound, make a Come Back, and Never Quit Read More »
They pursue realistic goals as their returns. They take decisive and immediate action when their buy or sell signal is hit. They focus on winning trades and not quantity of trades. They make logical, informed trading decisions within their system, based on the probabilities. They avoid the trap of trying to make perfect trades, and
13 Things Successful Traders Do Differently Read More »
If you want to come out as the winner in your trading adventure let the charts be your guide. For me the charts biggest translator is the moving average. It works so well because it is based on the one thing that matters the most: PRICE. But it smooths all the price noise into an
Ten Tips for using Moving Averages in Trading Read More »
One thing that trips up new traders is that they are surprised at the emotions that flood into them when they begin the process of trading with real money. Their ego engages and they do not want to be wrong and they sure don’t want to lose money. The negative downward emotional spiral takes down
The 7 Key Emotions of the Winning Trader Read More »
My trade going into the Greek elections is to stay in cash as I have been almost all week. I am not disappointed this week I will let the day traders make their money in this market and watch the bears get mauled by central bank interventions while I sit
My Trade Going into the Greek Elections Read More »
Ever have that day when you were a new trader and you were 100% sure about a trade. You just could not lose, the stock was a real buy it had already fallen a great deal and it could not possibly fall any farther. So you waited and then plunged in, you couldn’t
The Most Dangerous Trade Read More »
The S & P 500 has been range bound for a week holding at the 10 day moving average as support. The problem is that it can run the full range and back in 48 hours. The market is currently range bound in a $131/$134 $SPY price box. A price break out from here
Trading in the Valley of Uncertainty Read More »
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. Read on and learn from the man who has returned consistent triple digit returns in the stock market. Jack Schwager wrote in the book Stock Market Wizards; Interviews with America’s
My Interview with Mark Minervini Read More »
Two of the biggest obstacles in trading is managing risk and using a winning method. However, even if you control your risk on every trade and have a methodology that is a winner in the long term you can still
The Mental Game of Trading Read More »
With the powerful reversal off the $SPY 200 day and then the comeback after the reversal day I am ready to go long. The European Union headline risk was hanging over the market causing a lot of uncertainty and confusion but with the loan to the Spanish banks approved much of this will
My Next Buy Point and My Watch List Read More »
The free markets do not give up profits easily. The vast majority of all traders lose money over the long term. Many studies say it is as much as 90% that are net losers after all their trading. Even investors can work very hard to end up at even after a brutal bear markets takes
Ten Things that the Markets Reward Read More »
In trading while we have zero control over the long term moves in the markets we have 100% control over our own actions. It is not the market movements that will ultimately decide whether we win or lose but our own decisions. It is not a matter of what the
Trading is All About Control Read More »