Posts Tagged ‘trade the plan’

EXECUTING A PLANNED METHODOLOGY

EXECUTING A PLANNED METHODOLOGY

Courtesy of David, THE CROSSHAIRS TRADER

High angle view of a businessman holding a paper and thinking Model Release: Yes Property Release: NA

My friend and fellow trader Derek Hernquist over at Integrative Capital invited me to attend a meeting last night.  The speaker was Chuck Dukas of TRENDadvisor.  I won’t discuss here is methodology but instead his understanding of what makes a trader successful, no matter the methodology.   With over 25 years of experience trading and working with the most successful traders on the Street I believe what he has to say is right on target.  In fact, I would say his wisdom is IN THE CROSSHAIRS.  Mr Dukas shared three simple, basic elements for long term trading success and here they are:

1. Develop a solid METHODOLOGY:  instead of trading one pattern one day and another the next or trading off pure emotion or what the next guru preaches simply find ONE methodology that has been proven to work over time and stick with it.  It is boringly simple and is not for the Las Vegas inclined.  According to Dukas it is vitally important that a trader understand the importance of “trading what you see, not what you feel or think.”  In other words, a simple, well-thought out trading methodology will trump emotional feelings every time.  If the market is bullish then trade accordingly, in spite of feeling or thinking that the market should be bearish.  Without a methodology there is nothing but distorted psychology and arrogant hubris.  Unless you have enough money to trade your feelings then you best trade a methodology.

2.  Have a PLAN on how to trade the METHODOLOGY:  it is one thing to have a methodology and quite another to have a planned methodology.  Think of it this way: a football team puts together a set of plays, a “methodology” that it will use to take advantage of its opponent’s weaknesses and ultimately win the game.  This team will run a particular play within this methodology depending on the circumstances.  If it is third down and 20 yards to go, the plan will call for a long pass against a weak defender: not a quarterback sneak up the middle.  The same with a trading PLAN.  Your pattern, your edge, may…
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Zero Hedge

There Is A New "Most Crowded Trade" And "Biggest Tail Risk" On Wall Street

Courtesy of ZeroHedge. View original post here.

The monthly Bank of America Fund Managers Survey (FMS) is perhaps best known for exposing Wall Street's cognitive dissonance, if not schizophrenia, to the world because while on one hand survey respondents cry over soaring corporate and global leverage, at the same time they rush to 3x oversubscribe a bond package with the "worst-ev...



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Kimble Charting Solutions

Financials About To Let Down The Bull Market Again?

Courtesy of Chris Kimble.

If the saying So Goes The Banks, So Goes The Broad Market is true, what message are we receiving when financials have lagged the broad market for over a year?

This 2-pack looks at the XLF/SPX and EUFN/XLF ratios over the past couple of years.

The XLF/SPX ratio has created a series of lower highs for the past 12-months after peaking at (1). The EUFN/XLF ratio has created a series of lower highs for the past 18-months after peaking at (2). These falling trends look to be sending a negative divergence message to the broad markets if one believes that banks are important for bull markets.

Each ratio is near falling resistance at ...



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Phil's Favorites

Brexit may usher in point of no return for UK tech start-up scene

 

Brexit may usher in point of no return for UK tech start-up scene

Other European cities have been quick to sense opportunities from Brexit. Charles Hawley/Twitter

Courtesy of Martin De Saulles, University of Brighton

Sifting through the noise to really understand what impact Brexit and all the uncertainty that it brings is having on the UK’s technology start-up scene, it’s possible to see a picture emerging. It is one that should cause serious concern for anyone with an interest in keeping the UK at the centre of Europe’s technology sector.

In The Sun Also ...



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Chart School

Weekly Market Recap Mar 17, 2019

Courtesy of Blain.

A very good week for market bulls as the prior week’s selling was all reversed.  Last week we asked how many times can we rally on the same Federal Reserve juice.  It seems indefinitely.  Jerome Powell went on ’60 Minutes’ and talked dovish – that sparked a big rally Monday and it continued all week.  The only down day all week was Thursday when the progress on the U.S. – China trade deal seemed to hit a delay.

A meeting between President Donald Trump and Chinese President Xi Jinping will be delayed until at least April, Bloomberg News reported, indicating that a bilateral trade deal will n...



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ValueWalk

Pension Flows Add 5 More Years To Credit Boom/Bust Cycle

By Michelle Jones. Originally published at ValueWalk.

The pension crisis has been capturing headlines for years, but there’s another layer to the pension issue that’s starting to draw attention to itself. Public pension funds have shown an increasing appetite for credit and related holdings, the latest round of pension flows demonstrates that this trend continues One analyst believes pensions are largely to blame for the extremes of the boom/ bust cycles we’ve seen over the last year or so. He now suggests that the equity bull market could last another five years—thanks to the extremes driven by pension funds.

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Insider Scoop

Needham: Facebook No Longer A Buy Amid A 'Negative Network Effect'

Courtesy of Benzinga.

The bullish case for Facebook, Inc. (NASDAQ: FB)'s stock has come to an end, according to Needham.

The Analyst

Needham's Laura Martin downgraded Facebook from Buy to Hold with no price target.

The Thesis

Needham's multi-year bullish stance on Facebook's stock can no longer be justified for three key reasons, Martin said in a research report. These include:

  1. A negative potent...


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Biotech

Marijuana is a lot more than just THC - a pharmacologist looks at the untapped healing compounds

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

 

Marijuana is a lot more than just THC - a pharmacologist looks at the untapped healing compounds

Assorted cannabis bud strains. Roxana Gonzalez/Shutterstock.com

Courtesy of James David Adams, University of Southern California

Medical marijuana is legal in 33 states as of November 2018. Yet the federal government still insists marijuana has no legal u...



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Digital Currencies

Facebook's cryptocurrency: a financial expert breaks it down

 

Facebook's cryptocurrency: a financial expert breaks it down

Grejak/Shutterstock

Courtesy of Alistair Milne, Loughborough University

Facebook is reportedly preparing to launch its own version of Bitcoin, for use in its messaging applications, WhatsApp, Messenger and Instagram. Could this “Facecoin” be the long-awaited breakthrough by a global technology giant into the lucrative market for retail financial services? Or will...



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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



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OpTrader

Swing trading portfolio - week of September 11th, 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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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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About Phil:

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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