Archive for the ‘Book Club’ Category

Mind over Markets

PSW member Mark says:

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:

Mind over Markets. If you are really interested in studing Market Profile. See Cisco-Futures
Also Dr Brett has an article on Market profile and some good links to reading material. (In addition) notice Jim Dalton now has a website with free pdf and video on Anatomy of Market Profile.





The Three Vices of Trading

Do you have one of The Three Vices of Trading?

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
continue reading





 
 
 

Phil's Favorites

100 years ago African-Americans marched down 5th Avenue to declare that black lives matter

 

100 years ago African-Americans marched down 5th Avenue to declare that black lives matter

Courtesy of Chad WilliamsBrandeis University

Silent protest parade in New York against the East St. Louis riots, 1917. Library of Congress

The only sounds were those of muffled drums, the shuffling of feet and the gentle sobs of some of the estimated 20,000 onlookers. The women and children wore all white. The men dressed in black.

On the afternoon of Saturday, July 28, 1917, nearly 10,000 African-Americans marched down Fifth Avenue, in silence, to protest racial violence and white supremacy in the Uni...



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Zero Hedge

Swedish Government On Verge Of Collapse After Admitting 'Accidental Leak' Of Entire Nation's Info

Courtesy of ZeroHedge. View original post here.

Sweden’s government is being quietly rocked by a major scandal. So far the market has paid it little regard, but, as Citi warns, it may soon escalate...

Sweden appears to have accidentally leaked the details of almost all of its citizens. And now it's getting worse as the leak happened in 2015, but only emerged las...



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ValueWalk

Warren Buffett Goes Into Genius Mode!

By VW Staff. Originally published at ValueWalk.

Check out the top times that Warren Buffett goes into Genius mode!

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Words Of Wisdom From Charlie Munger (Part 3) Want to become a better investor, reading is crucial ...

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Chart School

U.S. Dollar; Triple support test after rare 30-week decline

Courtesy of Chris Kimble

From 2011 to the start of this year, the US$ has been pretty strong, as it rallied nearly 30% in 6-years. Over the past 30-weeks, King Dollar has been rather weak.

Below looks at the US$ over the past 18-years, with 30-week performance applied-

King Dollar has declined over 9% in the last 30-weeks at (1). As one can see, this sharp of a decline in 30-weeks hasn’t taken place a ton of times since the late 1990’s. The decline has the US$ testing the bottom of a 24-month trading range and two rising support lines at the same time at (2...



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Digital Currencies

Bitcoin (BTC/USD) Consolidating Near All-Time High Ahead of Aug 1 Fork

Courtesy of ZeroHedge. View original post here.

Bitcoin (BTC/USD) Weekly/Daily

Bitcoin (BTC/USD) slid yesterday on more profittaking, and now sits just above where it had broken above the daily chart's downchannel resistance. On the weekly chart, with last week's massive rally, the BTC/USD appears potentially to be in the late stages of a bullish flag pattern. With the August 1st fork looming, and daily RSI, Stochastics and MACD tiring, BTC/USD can be expected to continue consolidating today ahead of this key date. Although the negative weekly MACD crossover has proved a false signal for now...



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Insider Scoop

3 Reasons Comcast Should Acquire Verizon, And Why This Cost Dish A Downgrade

Courtesy of Benzinga.

Related CMCSA Analyst Says 31 Million Homes Could Cut Cord On Legacy Media; New Study Shows 64% Of U.S. Households Now Stream Programs ...

http://www.insidercow.com/ more from Insider

Biotech

Biologics: The pricey drugs transforming medicine

Reminder: Pharmboy and Ilene available to chat with Members, comments are found below each post.

 

Biologics: The pricey drugs transforming medicine

Courtesy of Ian HaydonUniversity of Washington

The cells inside this bioreactor are the real pharmaceutical factories. Sanofi Pasteur, CC BY-NC-ND

In a factory just outside San Francisco, there’s an upright stainless steel vat the size of a small car, and it’s got something swirling inside.

The vat is stud...



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OpTrader

Swing trading portfolio - week of July 24th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

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. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Members' Corner

Why we need to act on climate change now

 

Why we need to act on climate change now

Interview with Jan Dash PhD, by Ilene Carrie, Editor at Phil’s Stock World

Jan Dash PhD is a physicist, an expert at quantitative finance and risk management, and a consultant at Bloomberg LP. In his thought-provoking book, Quantitative Finance and Risk Management, A Physicist's Approach, Jan devotes a chapter to climate change and its long-term systemic risk. In this article, Ilene interviews Jan regarding his thoughts on climate change and the way it can affect our futu...



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Mapping The Market

The App Economy Will Be Worth $6 Trillion in Five Years

Courtesy of Jean-Luc

This would be excellent news for AAPL and GOOG to a lesser extent although not inconsequential:

The App Economy Will Be Worth $6 Trillion in Five Years 

In five years, the app economy will be worth $6.3 trillion, up from $1.3 trillion last year, according to a report released today by app measurement company App Annie. What explains the growth? More people are spending more time and -- crucially -- more money in apps. While on average people aren't downloading many more apps, App Annie expects global app usership to nearly double to 6.3 billion people in the next five years while the time spent in apps will more than double. And, it expects the...



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Promotions

NewsWare: Watch Today's Webinar!

 

We have a great guest at today's webinar!

Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

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Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...



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Kimble Charting Solutions

Brazil; Waterfall in prices starting? Impact U.S.?

Courtesy of Chris Kimble.

Below looks at the Brazil ETF (EWZ) over the last decade. The rally over the past year has it facing a critical level, from a Power of the Pattern perspective.

CLICK ON CHART TO ENLARGE

EWZ is facing dual resistance at (1), while in a 9-year down trend of lower highs and lower lows. The counter trend rally over the past 17-months has it testing key falling resistance. Did the counter trend reflation rally just end at dual resistance???

If EWZ b...



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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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