As with any indicator all it really provides are breadcrumbs or if you will, a post. Something visually attracting to help you remember the next time it happens. If you are looking at an indicator without context you are betting on three things: you saw it first, others will see it soon and react, and… Continue Reading
Monthly Archives: July 2011
Neglected trading skill: Follow Through
Follow through is a completely under rated skill. Many traders, me included, work so hard to get to a point that we forget what got us there. Here is a reminder of the definition of follow through: follow-through - carrying some project or intention to full completion; “I appreciated his follow-through on his promise” mop up, windup, completion, culmination, closing - a… Continue Reading
The guru’s guide to market commentary.
From the archives. Guide to bad market commentary. Never and I mean never refuse to answer a questions just because you do not have an knowledge, experience, or it is your last breathe on this earth. Do use a long term chart to prove a short term thesis. Have a big word in your arsenal,… Continue Reading
Interview with the two traders that influenced me the most.
When you look back on how you have developed you can always see the pieces of the people that got you there. No two people have influenced my career more than Vince (VXD) and Anthony (DELI). Vince let me hang out in the office and in that office Anthony taught me technical analysis. They both taught me about… Continue Reading
Accepting responsibility for your good and bad trades.
When a trade works really well what do you look at first? The market or yourself? When a trade doesn’t work what do you look at first? The market or yourself? Accepting responsibility for both gives you motivation and reminds you of the risks. Empowers If you take the focus off of yourself and put it… Continue Reading
CME applies haircut and why it doesn’t matter.
The CME Group announced that early Monday they were applying a haircut to bonds. Lets define haircut and purpose of a bond. A haircut: In finance, a haircut is a percentage that is subtracted from the market value of an asset that is being used as collateral. The size of the haircut reflects the perceived risk associated with holding the asset. However, the lender… Continue Reading
Too invested to trade.
One of the worst parts of trading at CME is I got to see many traders on their last day. One of the best parts of trading at the CME is I got to see many traders on their last day. How they got to that point is all different. One of the three D’s,… Continue Reading
7 Dirty Words of Trading
This originally appeared in January 2011. Be careful how you use the following words and phrases. Should- Phrases include: “The market should have” and “I should have”. Those phrases are often used to socialize losses. They are a strong signal something is off. They should be used to aid you in correcting your vision not… Continue Reading
Debt ceiling: Will Social Security checks get mailed out.
In trying to see if debt ceiling will have a dramatic effect on the market other than the obvious confidence shaking. And mostly to try to understand why the market isn’t freaking out I uncovered the following. Nothing will get people on your side like the imagery of your grandparents not being able to eat. Well it… Continue Reading
United States, too big to fail. An optimist trader’s view on the debt ceiling.
I am not for sure what happens with the debt ceiling. I believe that a deal gets done or the markets won’t care, where they are not legally obligated to care (ie credit agencies). I will admit that I have grown even more unsure, I guess that is part of their negotiating tactic. I realize… Continue Reading
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