Successful speculation starts with observation. Instead of looking at charts, I have designed a methodology for determining intra-day direction based on ‘measured moves’ and created applications to answer my questions regarding trade-able tendencies and to assist in my research. The first thought that comes to mind, when considering the question – “Is it possible to […]
Trading Lessons
3 Dos and Don’ts Most Traders Learn the Hard Way from Market Wizard Mark Minervini
The following article is an excerpt from Trade Like a Stock Market Wizard: How to Achieve Super Performance in Stocks in Any Market by Mark Minervini with permission from McGraw Hill Publishing. How to Handle a Losing Streak A losing streak usually means it’s time for an assessment. If you find yourself getting stopped out […]
8 Rules That Simplify Futures Trading
Breaking with Tradition – Why I Don’t Use Technical Analysis: Part 2
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, […]
Breaking with Tradition – Why I Don’t Use Technical Analysis: Part 1
The Power of Trading The S&P 500
Recently we’ve been working on an S&P 500 mean reversion strategy. The entry rules are very straightforward: When a member of the S&P 500 closes with a low ConnorsRSI value and satisfies one other filter, buy the next day on a limit order. The exit rule is even simpler: sell when ConnorsRSI closes above a […]
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 […]
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 […]
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 […]
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 […]
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