Many unfamiliar with trading, think it is gambling, or that we will lose all our capital on one trade. These folks don’t understand the basic principle of a stop loss. Rather than hold a stock from $100 to $0, a good trader will be out the moment that price confirms that they were wrong. For a day trader, […]
Asymmetric Trading Read More »
40 steps in the trader’s journey from new trader to rich trader: We accumulate information. We learn by buying books, asking questions, going to seminars and researching what really works in trading. We begin to trade with our new-found knowledge. We make profits only to give it back very quickly, realizing that we may need
40 steps in the Traders Journey Read More »
In trading as in all other endeavors in life there are people who take full responsibility for their own results and the consequences of their own actions and there are others who blame everybody and everything else for the bad things in their life. There are the winners and
The Winning Trader & The Whining Trader Read More »
Before you launch your trading career or continue it, it is important to ensure that your trading method works. This is where the homework comes in. Chart studies, computer back testing, the study of the success and failure rate of chart patterns, how monster stocks performed historically, and eyeballing charts around specific price action
In this video Ed Seykota’s disciple Michael Martin interviews the best selling author of the Market Wizard series of trading books, Jack Schwager. Considered by many the greatest trading books ever written. In Schwager’s newest book “Hedge Fund Market Wizards” he interviews the greatest hedge fund managers in the
Market Wizards Author Jack Schwager’s New Interview Read More »
The reason trend traders make money in the long term, is due to supply and demand, and the flow of capital through equities, currencies, commodities, and future contracts. These tend to trend in one direction or the other at different times. Trend traders and trend followers are ready to capitalize on those trends by letting
Make Money Trend Trading Read More »
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 »