What is the best setup for new traders to trade? A Changing Fundamentals Trade! With a Changing Fundamentals Trade, one day the fundamental strength about the name is substantially different than just the day before. These trade setups tend to move faster than the broad market (both up and down.) They trend intraday. They can trend for 1-3 days for … Read More
Using VWAP to gain a trading edge
Newer traders often ask us “which indicators are best?” Maybe you have one or more of these indicators on your chart: MACD Bollinger Bands RSI Stochastics SMA EMA Parobolic SAR and on and on and on It must be very confusing for the new and developing trader to find technical analysis tools to gain a trading edge. It must be … Read More
Happiness precedes trading success
Many traders believe they will be happy after they become profitable. In fact, first comes happiness, which then can dramatically propel elite performance. Shawn Archer author of The Happiness Advantage, explains in this article Positive Intelligence: In fact, it works the other way around: People who cultivate a positive mind-set perform better in the face of challenge. I call … Read More
The Opening Drive Trade: Is it for you?
Some trading “gurus” preach that you should learn how to trade the open. Because, as they say, you can trade 15 minutes a day, make 500% a year, buy a Lamborghini like me, and be the envy of all your friends. Other trading “gurus” say things like: avoid the open, I don’t trade until 10am, trading in the first 30 … Read More
How to shut up the risk manager
We had a meeting with a Year2 trader after the close and he did something you ought to be able to do. Let’s call this prop trader Frequent Flyer. Frequent Flyer has fallen in love with a strategy, that between us, I don’t love. As a directional discretionary trader this strategy doesn’t feel like real trading to me. It’s … Read More
An idea that is helping traders
During our monthly trader reviews this week one best practice repeated 3xs as helpful to traders. Get up and take a walk when you are angry. I remember when I first started trading, watching and hearing traders bang and cuss as if at a NY Rangers game. I remember thinking that is so unprofessional. And then I started trading (insert … Read More
Put the trade on……NOW
It is that time of the month. Time for monthly reviews from our traders and time for me to read them. One developing trader wrote something that will trigger an important conversation about spotting your best trades. If you do this better this month you will see improvement with your trading. This developing trader wrote: Decrease the amount I lose … Read More
An antidote to trading on tilt
I received this email today from a veteran and *very* successful independent trader. He sends me his thoughts on his trading each day, which I really enjoy reading. And I share some feedback, where I can help. Remember, these are the thoughts of a very successful and veteran trader. If he has them, then certainly many of us have the … Read More