The most common mistakes a new trader and struggling trader make.

Trading is painful. Without experience it is hard to tell the difference between the long term effects of touching the hot stove for a second or a minute.  It all feels the same. The immediate response is to change something. Eventually, you completely understand the risks and realize that you are eventually going to touchContinue Reading

The Three Most Important Words in Market Forecasting

“In this market…” Whenever I am asked to make a prediction, I start or finish with “in this market.” Although I look at longer term charts I do not trade off of them. I look at long term charts only because I know other people look at them.  Much of technical analyst, the predictive part,Continue Reading

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

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