Tag Archives: market participants

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

Thoughts on the Nanex HFT in futures report.

Nanex came out with their report of a report on futures, lets call it a derivative. The original report is here, I only skimmed it but came away with harmless conclusions and nothing that a trader would not do themselves. I want to say that I am not a HFT apologist but I will letContinue Reading

Causation and correlation 101

It appears there a gaping hole of disconnect between causation and correlation.  Correlation says that two things move along in equal or almost equal ways or opposite ways.  Causation says that one thing affects the movement of another. Huge difference. Lets talk about two recent examples: The market has been up X% on Tuesday’s after X event occurred.Continue Reading

Getting undressed by window dressing…

Window dressing occurs when a trader is short and the market rallies and until recently was only limited to the end of month but it now can occur at any point. See many trades tell themselves lies. For example, there is only one way to make money. That if you make money doing one thingContinue Reading

50+ famous quotes adapted to trading.

I have posted this a few times before and always get some interesting feedback and reader comments.  As traders we are always trying to find some lesson or quote that we can relate back to trading.  It is never the same as experiencing it for yourself but it is less costly. This is my wayContinue Reading

When participants change, reaction does too.

I realize this post is about three years too late or at least two years but I see some people making the same mistakes and it is good thing to think about any way. As a general rule, I do not talk about current market conditions because if you want to know our thoughts you canContinue 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

Famous quotes adapted to trading.

This post updated from early 2011. Here are some famous quotes adapted to trading.  There are many things that are true about life that are also true about trading.  Enjoy, add your own in the comment section. A man should look for what is, and not for what he thinks should be. Albert Einstein AContinue Reading

This is the most bullish on the market I have been in awhile.

I am bullish on the market but I do not know where it is going.  To say this break wasn’t needed or even predictable is to ignore the writing on the wall. Fear vs uncertainty NFP came out really awful.  The market sold off (and then popped). But it starts the healing process and that isContinue Reading

50+ famous quotes adapted to trading.

Here are some famous quotes adapted to trading. A man should look for what is, and not for what he thinks should be. Albert Einstein A trader should look at a chart for what it is, and not for what he want it to be. A person who never made a mistake never tried anythingContinue Reading

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