You better be managing risks on days like today, when the Dow Jones Industrial Average rockets up almost 500 points due to announcements from central banks. Shorts were punished once again, not by the normal market functions of supply and demand or emerging trends, but government interference. Such is life in the markets and trading. […]
7 Easy Steps to Blow Up your Trading Account Read More »
How are you feeling? Were your palms sweating as you placed that last trade? Was your heart pounding the whole time you had the big trade on? Are you trading for excitement or to make money? The hardest part of trading is not math, it is not even developing a good methodology and system. Risk
A Trader’s Emotional Indicators Read More »
Eighty-four years ago, on Thursday, November 28, 1940, Jesse Lauriston Livermore entered the Sherry Netherland Hotel, where he took a seat near the bar and enjoyed a couple of old-fashioneds. After an hour, Jesse Livermore got up and went into the cloakroom, seated himself on a stool, and then shot himself in the head with
The Greatest Trader who ever lived: Jesse Livermore? Read More »
Oh my! Europe may implode! The euro may become worthless! Many European countries could go bankrupt! Do I go long? Is this support? Do I short based on fundamentals, surely the market will be going lower, right? Do I scoop up hot stocks at a bargain? What should I do? Follow your system, methodology, and
The Wisdom of Market Wizard Ed Seykota Read More »
Have you ever heard of the legendary Turtle traders? Legendary 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. Founder of the ‘Turtle
The Specific Rules used by the Legendary Turtle Traders Read More »
Arguably one of the greatest traders of all time with his trend following system. Charles Faulkner tells a story about Seykota’s finely honed intuition when it comes to trading: I am reminded of an experience that Ed Seykota shared with a group. He said that when he looks at a market, that everyone else thinks has
The Ten Best Things Ed Seykota Ever Said. Read More »
Each market trend is generally driven by events and participants beliefs about what those events mean. Recently we have had Europe driving the market “bus”. The market rises and falls based on what the majority believes about the sovereign bond yields. Each day as yields on European bonds rise and fall the market tries to
On this thanksgiving day let us be thankful for what we have as traders. Most of the world lives in poverty with out the opportunities we enjoy in capitalist markets. Let us count our blessings. We live in a country where we can trade. Entrepreneurs have created stocks and markets for us to trade. We
A Trader’s Thanksgiving Read More »
There is really only one reason to trade: to make money. Unfortunately many traders get off track. Your trading should be ran the same way you would run a business. You are trading to make money, no other reason. Your trading should resemble being in an auction for profit or a market place of goods.
If you can’t take the heat get out of the kitchen. This familiar saying applies to trading. While you are reading about trading in books and online you will feel a sense of confidence grow. You will study charts and they will look so obvious, of course, there is the support, the resistance, and
Can you take the heat of your trading method? Read More »