Category Archives: new post

How to tell if “they” got the number first.

I am sitting in a corner office at 30 S. Wacker (former home of the Merc or Chicago Mercantile Exchange).  It was one of my first weeks, a random Wednesday in 2005.  Oil inventories come out and it is worse than expected.  Oil rallies and the market proceeds to break. At this time, I amContinue Reading

Market Participant Hierarchy of Fears

How does yours differ?  How would you change it? We would really appreciate your feedback, if you like, hate, or think we are full of crap. Please leave a comment, a voice mail (312) 725-9121 , email info @ traderhabits (dot) com or twitter, stocktwits, youtube and facebook. Subscribe to Traderhabits by email or to newsletter.Continue Reading

Anticipating Market Profile Change

                                                                                                             Continue Reading

What getting information early does not tell you.

Greg Harmon hit on something important today in his post Early News Releases are a Smoke Screen. If you thought while sitting in your home office, or mother’s basement or dorm room or even at one of the big trading floors, that you could compete with even the slowest of the HFT firms you are justContinue Reading

Why I hate (trading) trophies.

Trading Trophy: noun 1. A trophy given to one who makes a good trade, financed by the recipient. 2. Verbal confirmation of a good trade, financed by thousands of dollars and hours of mistakes. 3. A living and breathing unicorn given to those that pick the top or bottom, financed by the gold at the endContinue Reading

I don’t always journal but when I do…

There is a lot of debate about journaling. I think it is especially important for new and struggling traders. It is important to bridge the gap between perception and reality and there is no better way than through a journal. I do not keep a traditional journal. I want to be able to recall it,Continue Reading

Response to CME reporting delay.

Jeffrey Carter of Pointsandfigures has a post out today breaking down the WSJ reporting of the lag between confirmation reporting. His main argument is that these millisecond delays in the confirmation to the trader versus to the public create an advantage. In simple terms the trader knows about their fills before the market does. He goesContinue Reading

100% correlation means 0% causation.

If a correlation never changes there is very little chance there is any causation. Finding two things that are trending the same way isn’t that hard. Which is harder? Finding causation or assuming there is one. Which is more destructive? We would really appreciate your feedback, if you like, hate, or think we are fullContinue Reading

Markets aren’t manipulated, people are.

Whenever I see bars like today when the AP hacking took place, I know that some people got taken out or were at least seriously maimed. It is the unfortunate part of this job.  One of many bad things.  But I also know that some people made money. (I was away from my desk.) HereContinue Reading

How to explain to a 7 year old what makes trading difficult.

This conversation started because I was sitting at the table a few weekends ago and my nephew asked me what I was doing, I said I was doing homework.  “You are in school?” “Not in the same way you are but I still have to do homework.” “Do you have a teacher?”  “Yes it isContinue Reading

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