A passage from The Economist that may help our trading- The referee’s an anchor: A new book looks at the behavioral economics of sport “Loss aversion”, the tendency for people to care more about avoiding a loss than about making a similar-sized gain, is rife even among the greatest champions. Evidence from a huge database of near-identical putts shows that, along with … Read More
Knowing when a stock should move can be more important than picking its direction
Most traders make a whole lot about picking the direction of a stock. A very important skill talked little about is knowing when a stock should move. After you see something of the Tape you know the stock is now likely to move. We saw that a few times in PCX. Sometimes this skill is more important than actually picking … Read More
Traders Ask: How Do You Detect Overconfidence?
Hi guys After a rotten 12 months I’ve had a cracker of a month not just with the recent bull run but with the preceding drop also. This has occurred after stepping back, refining a trading entry methodology based around volume (exit and money management are already in place) and focusing on this play. Obviously I’m proud of myself, but pride … Read More
The Shake, GMan, the Newbs and ETP
50.50 was the important technical level we were hawking in ETP. Stock In Play. We have our level. ETP opens below, does tons of volume just below the level, and then holds above 50.50. Long right? Easy right? Well if only trading were that easy. Yes we want to be long. But can we stay in the long while responsibly controlling … Read More
No Excuses
I am too tired to rip through charts. This market is too hard. This market is too slow. It’s too nice out to stay for the close. I have to meet some buddies for drinks. I need a faster computer. My platform sucks. My firm doesn’t care. If only someone taught me (fill in the blank). I am not smart … Read More
Find the Least Competitive Stocks?
A sick, pretty well-known trading author walks into a Clearwater Beach breakfast treasure, hacking cough, in need of a shave and tan, with flipflops, shorts and a black penguin polo. Over scrambled egg whites and honey wheat toast he listens to another market veteran share his market wisdom. Almost eerily it is like listening to himself talk, with then some new … Read More
Building Your College Trading Club
Think back to when you first started learning about trading. The potential, the excitement, the learning curve, your first gain and your first loss. It’s a process we all went through. I read books, blogs, basically anything I could get my hands on. I definitely learned a lot, but looking back on my experiences, I learned the most by going through … Read More
My Unprepared Interview with SMB
I found this blog post about @smbcapital on Twitter. Is he getting hired? TUESDAY, MARCH 22, 2011 My unprepared interview with SMB This is my second time in New York but the first time to actually took the time to look around. It is one of the most fascinating city I been to. I feel like everybody walks with a … Read More