Tag Archives: finance

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

E-mail: I am doing everything right and I am still losing.

I got an email yesterday and to sum it up it,it basically said “I am doing everything right and I am still losing”.  The most discouraging part of trading or really anything is learning what you do not know.  It is hard to measure the progress and many do not understand how or why theyContinue Reading

How you define an outcome (losing capital), changes future outcomes.

(From the archives) Redefining or changing a word in a sentence can provide the necessary psychological shift to see things in a different way. This different perspective can lead to different results (hopefully positive). Probably the most common redefined word in finance is “Loss” which is turned into “Investment in Education” or “Tuition”. I amContinue Reading

Waiting for the market to make sense.

There seems to be an ever increasing chatter about how the market is going to revert to the mean or it is broken or it is undervalued.  Whatever it is let me remind you of two important ideas that are found in about any book you will ever read around finance and investing. The marketContinue Reading

NFP and the epidemic that has plagued finance.

People seem to get data wrong, they assume it happens in a vacuum.  They confuse causation with correlation.  They discount living through the experience. It is the difference between watching the movie and reading the critique.  As a market participant your goal is to determine what the market thinks is most important and apply risk management to it.Continue Reading

5 reasons I hate Joshua Brown.

Chances are if you read my blog or watch financial news or read major publications you know who Joshua Brown is.  He is also known as the Reformed Broker. If you haven’t here is his blog and twitter. Here is why I hate him: He gives people a voice.  His blog contains many guest posts,Continue Reading

How coins have evolved throughout history.

Who said gold isn’t money? Source: http://visual.ly/evolution-coins-throughout-history 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, and facebook. Subscribe to Traderhabits by EmailContinue Reading

Do it once.

Trading is about proving to yourself you can do things.  As you get over these barriers you realize that you were holding yourself back for no reason.  This will give you confidence to defeat the next one. The first step is to recognize it.  This is where it is important to see outside yourself.  YouContinue 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 lenderContinue Reading

Trapped in to taking a bad trade.

I said I have never taken a bad trade. That post sparked a few conversations and the best imagery I can come up with is an animal trap. (excuse the photoshop) Every trader puts themselves in a bad position at some point.  This position makes the reward look great no matter the risk.  Or theyContinue Reading

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