Probably the most important thing to think about when trading (who’s playing the space and at what times?). very good knowledge to have. I’ve said this in past posts many times buy I HIGHLY suggest everyone read this book: Mind over Markets (by James F. Dalton).
Not a holy grail or system trading, just a methodical approach to understanding the players in the market and when they’re in it. Even if you don’t use the CBOE Market Profile, you’ll learn a lot about who’s in the market when with this book.
As a useful add-on to the book, member Alfred Toy adds:
Dr. Brett Steenbarger (psychiatrist) who wrote "The Psychology of Trading" (which is a book club selection)list’s just 3 (although I can think of a few more) "negative behavioral patterns" that get in the way off good trading. I very much agree with his statement:
"Remember, observing and interrupting your patterns are the first steps in altering them! Your patterns lose control over you as you become better at not identifying with them. When you become an observer to your patterns, you are separating yourself from them. What great progress that is!"
Perfectionism: Perfectionism is often the chief culprit when the pain of losing exceeds the pleasure of winning. Even when there’s a profit on a trade, perfectionists will look for the portion of the move that they did not participate in. If they caught most the move, they will reprove themselves for not trading a larger position. By focusing on the portion of their performance that doesn’t match their ideals, perfectionists transform successes into defeats, losses into failures.
“Beating myself up” is how many perfectionists describe their self-talk. The way to beat perfectionism is to make a concerted effort to talk to yourself the way you would talk to a good friend in a situation where things went wrong.
Ego: When traders invest their feelings about themselves in their trading, they are operating with maximum emotional leverage. It inevitably affects decisions about cutting losses, letting profits run, and entering and exiting in a timely fashion. The successful trader wants their trades to work out; the ego-involved trader needs them to be profitable.
If trading has us truly depressed, we know that it’s not just our trading account that’s hurting. Market success can be the frosting on the cake of your successful life, rarely can it substitute to the cake itself.
Overconfidence: Because they’re so eager to make money – and so sure they can make it – overconfident traders generally trade impulsively. They won’t wait for the setup to form; they’ll jump the gun – and get whipsawed in the process. Instead of being patient and waiting for short-term patterns to align with longer-term patterns, they will take every trade, enriching their brokers in the process.
Overconfident traders overtrade. They fear missing opportunities more than they fear…
On Sunday mornings Squealer, holding down a long strip of paper with his trotter, would read out to them lists of figures proving that the production of every class of foodstuff had increased by two hundred per cent, three hundred per cent, or five hundred per cent, as the case might be. The animals saw no reason to disbelieve him, especially as they could no longer remember very clearly what conditions had been like before the Rebellion. All the same, there were days when they felt that they would sooner have had less figures and more food.
The point: In a totalitarian state, there’s a c...
The German Stock Market has been a quality leader in both directions the past few years. Below looks at why one might want to keep a “close eye” on this key global stock index, to see if it can hop over a important breakout level.
CLICK ON CHART TO ENLARGE
Similar to the S&P 500 and many stock indices in the states, the DAX index remains inside of a uniform rising 6-year channel, since the 2009 lows.
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This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).
We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options.
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It was all about the Federal Reserve as we noted it would be. In last week’s recap we said:
From this perch there has been and continues to be zero expectation for a September rate hike as the Fed doesn’t want to be seen as “political” and trying to move the market ahead of November, but the Fed is at least trying to throw some bones out there to make the market a bit less complacent.
All eyes on the Federal Reserve with a meeting Tue/Wed and a press conference by Yellen Wednesday. Since we expect nothing to happen Wednesday in terms of raising rates maybe the market will be in “relief” mode. Unless there is strong language from Yellen hinting at a December rate hike....
"When you let the free market take over, the little people get screwed and bankers get rich. Chile tried privatizing retirement plans and surprise, surprise, fund manager ate the profits… Pretty sure the results would be the same here..." ~ Jean-Luc
I was so pleased yesterday by the announcement that I have joined the Research team at GoldCore as it meant that I could finally start talking about it and was back in a role that lets me indulge in my passion by researching and geeking out on all things gold, silver and money.
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Epizyme was founded in 2007, and trying to create drugs to treat patient's cancer by focusing on genetically-linked differences between normal and cancer cells. Cancer areas of focus include leukemia, Non-Hodgkin's lymphoma and breast cancer. One of the Epizme cofounders, H. Robert Horvitz, won the Nobel Prize in Medicine in 2002 for "discoveries concerning genetic regulation of organ development and programmed cell death."
Before discussing the drug targets of Epizyme, understanding epigenetics is crucial to comprehend the company's goals.
Genetic components are the DNA sequences that are 'inherited.' Some of these genes are stronger than others in their expression (e.g., eye color). Yet, some genes turn on or off due to external factors (environmental), and it is und...
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