Traditional technical analysis is purely inductive reasoning that purports to observe reality, but because it lacks the most important input for any statistical model—that of the testable hypothesis—it lacks any ability to say anything concrete. The scientific method is a form of positivist methodology, which centers on the falsification of a hypothesis or theory. If,… [Read More]
Contributors
Breaking with Tradition – Why I Don’t Use Technical Analysis: Part 1
10 Reasons to Be Both a Trader and Investor
I wear two hats. One is my green trading hat. The other hat is a yellow investing hat. Why two hats? Because there are two different realms in finance in terms of how we accumulate money. These hats are metaphorical, but they serve a distinct purpose. Here are 10 key reasons to be both a… [Read More]
How to Manage Investment Information Overload
The internet is an amazing resource; but it has enabled an information-based society that is often plagued with excess. In financial markets, we often experience that excess as information overload and a low informational signal-to-noise ratio. What is “information overload”? First popularized in Alvin Toffler’s book Future Shock, it refers to the detrimental effect on… [Read More]
The Most Common Trading Mistake
I have dealt with futures traders for over 30 years and I continue to see the same flaw in their trading approach that limits, if not prevents, their success, in my opinion. And, no, it is not using stops as most would think even though that fatal trading mistake ultimately has only one outcome. What… [Read More]
How to Identify Profitable Chart Patterns
Is the human mind programmed to look for patterns, even when there are none? If the stock market is like a casino, ruled by chance, there would not be any patterns for to look for. If however, the whims of its players do influence the price movements of stocks, commodities, currencies or market indices, there… [Read More]
3 Core Principles of an Enlightened Trader
Since I became a full time trading coach almost thirty years ago, my mission has been transformation through a financial metaphor. My staff thrives on the comments that we receive on almost a daily basis: “You have changed my whole life for the better, thank you” Or “I want to thank you for your materials… [Read More]
4 Rules for Applying The Elliott Wave Principle
Many traders know about the Elliott Wave Principle, but most do not understand how it works or how to apply it. The purpose of this article is provide you with enough of an understanding Elliott Wave to improve the accuracy of your trading. I saw a headline a few days prior to writing this article… [Read More]
3 Key Steps to Recognizing a Bubble
One would think that after suffering through two devastating bubbles in the last dozen years, American investors should by now be experts at recognizing a bubble. However, it seems we are stubbornly and willfully blind at spotting them, even though the grandest and most deadly of them all is precariously lurking over our economy. All… [Read More]
10 Common Retirement Mistakes
I was recently looking at my father’s 401k and cringed at his “picks” (his words). This is a manufacturing guy, not a money guy. I realized though, I went to school for finance, while he went to a factory. So I explained to him some common rules to think about and live by and how… [Read More]
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