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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

3 Key Asset Classes That Are Mispriced

Dr. David Kelly, Chief Global Strategist, J.P. Morgan Funds, believes three assets are currently and temporarily mispriced: oil, the US dollar and bonds. He suggests that interest rates will be raised in June. Although cheap oil is suppressing inflation, Kelly argues, the Federal Reserve recognizes this as a temporary phenomenon and will "continue to prepare for a long-overdue monetary normalization."

3 Key Asset Classes That Are Mispriced

By Dr. David Kelly

Oil is in the basement, the dollar is in the attic and the bond market’s sleeping in. In short, the house of financial assets is a house of confusion. While the passage of time and a steady flow of new data should restore some order, this progress could yet be halted or even reversed by significant ...



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Zero Hedge

Greek Pensioners To Fund Ukraine's Government: Syriza Will Tap Pension Funds To Pay IMF

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Just yesterday we warned that, among the 'solutions' the Greek government was exploring in its scramble for cash to pay back The IMF loan, was 'borrowing' from the nation's pension funds. Today we get the sad confirmation that indeed Greece will raid cash reserves in pension funds and other public sector entities to cover its funding needs. As Reuters reports, Greece will use short-term repo transactions to transfer the cash, but one government official said they could not be used to repay the IMF. As the radical left-wing government takes from the implictly wealthier Greeks (pension funders), it is giving free electricity, a rent al...



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All About Trends

Mid-Day Update

Reminder: David 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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Chart School

RTT browsing latest..

Courtesy of Read the Ticker.

Please review a collection of WWW browsing results.Date Found: Saturday, 31 January 2015, 07:04:10 PM

Click for popup. Clear your browser cache if image is not showing. Comment: Recessions are illegal! Banned by the central bankers. Wait whats this???

Date Found: Sunday, 01 February 2015, 12:47:52 PM

Click for popup. Clear your browser cache if image is not showing. Comment: Feliz Zulauf talks deflation and non producing debt, a great concern. kingworldnews.com...

Date Found: Sunday, 01 February 2015, 12:49:32 PM

Click for popup. Clear your browser cache if image is not s...



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Insider Scoop

Credit Suisse Reiterates Underperform, Lowers Price Target On CBOE Holdings As Volume Trends Remain Challenged

Courtesy of Benzinga.

Related CBOE 4 Stocks Wall Street Loves This Year...And 4 It Doesn't Simons-Founded Renaissance Technologies Buys Apple, Closes Facebook, Trims McDonald's In Q4

In a report published Tuesday, Credit Suisse analyst Christian Bolu reiterated an Underperform rating on CBOE Holdings, Inc. (NASDAQ: CBOE), but lowered the price target from $63.00 to $58.00.

In the report, Credit...



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Sabrient

Sector Detector: Stocks break out again but may be running on fumes

Courtesy of Sabrient Systems and Gradient Analytics

Despite low trading volume, a strong dollar, mixed economic and earnings reports, paralyzing weather conditions throughout much of the U.S., and ominous global news events, stocks continue to march ever higher. The world remains on edge about potential Black Swan events from the likes of Russia, Greece, or ISIS (or lone wolf extremists). Moreover, the economic recovery of the U.S. may be feeling the pull of the proverbial ball-and-chain from the rest of the world’s economies. Nevertheless, awash in investable cash, global investors see few choices better than U.S. equities.

In this weekly update, I give my view of the current market environment, offer a technical analysis of the S&P 500 chart, review our weekly fundamentals-based SectorCast rankings of the ten U.S. business sectors, and then ...



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OpTrader

Swing trading portfolio - week of March 2nd, 2015

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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Market Shadows

Kimble Charts: Coal

Kimble Charts: Coal

By Ilene 

Chris Kimble's chart for KOL shows a recently beaten down ETF struggling to pull itself up from the ashes. As the chart shows, KOL has recently drifted down to levels not seen since the financial crisis of 2008-9.

Bouncing or recovering with energy in general, coal prices appear to have stabilized in the short-term. Reflecting coal prices, KOL has traded between $13.45 and $19.75 during the past year. Bouncing from lows, KOL traded around 2% higher yesterday from $14.26 to $14.48 on high volume. It traded another 3.6% higher in after hours to $15, possibly related to ...



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Digital Currencies

MyCoin Exchange Disappears with Up To $387 Million, Reports Claim

Follow up from yesterday's Just the latest Bitcoin scam.

Hong Kong's MyCoin Disappears With Up To $387 Million, Reports Claim By  

Reports are emerging from Hong Kong that local bitcoin exchange MyCoin has shut its doors, taking with it possibly as much as HK$3bn ($386.9m) in investor funds.

If true, the supposed losses are a staggering amount, although this estimate is based on the company's own earlier claims that it served 3,000 clients who had invested HK$1m ($129,000) each.

...



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Pharmboy

2015 - Biotech Fever

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

PSW Members - well, what a year for biotechs!   The Biotech Index (IBB) is up a whopping 40%, beating the S&P hands down!  The healthcare sector has had a number of high flying IPOs, and beat the Tech Sector in total nubmer of IPOs in the past 12 months.  What could go wrong?

Phil has given his Secret Santa Inflation Hedges for 2015, and since I have been trying to keep my head above water between work, PSW, and baseball with my boys...it is time that something is put together for PSW on biotechs in 2015.

Cancer and fibrosis remain two of the hottest areas for VC backed biotechs to invest their monies.  A number of companies have gone IPO which have drugs/technologies that fight cancer, includin...



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Stock World Weekly

Stock World Weekly

Newsletter writers are available to chat with Members regarding topics presented in SWW, comments are found below each post.

Here's this week's Stock World Weekly.

Click here and sign in with your user name and password. 

 

...

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Option Review

SPX Call Spread Eyes Fresh Record Highs By Year End

Stocks got off to a rocky start on the first trading day in December, with the S&P 500 Index slipping just below 2050 on Monday. Based on one large bullish SPX options trade executed on Wednesday, however, such price action is not likely to break the trend of strong gains observed in the benchmark index since mid-October. It looks like one options market participant purchased 25,000 of the 31Dec’14 2105/2115 call spreads at a net premium of $2.70 each. The trade cost $6.75mm to put on, and represents the maximum potential loss on the position should the 2105 calls expire worthless at the end of December. The call spread could reap profits of as much as $7.30 per spread, or $18.25mm, in the event that the SPX ends the year above 2115. The index would need to rally 2.0% over the current level...



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Help One Of Our Own PSW Members

"Hello PSW Members –

This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible.  Feel free to contact me directly at jennifersurovy@yahoo.com with any questions.

Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts.  After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.)  Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743

Thank you for you time!




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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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Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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