Leader vs. Bureaucrat

The Bureaucrat knows everything
The Leader asks questions

The Bureaucrat values policy
The Leader values ideas Continue reading “Leader vs. Bureaucrat”

There will not always be support

There will always be resistance. Our default expectation should be resistance. But in markets, just like it many other aspects of life, there will not always be support. This is an important lesson because it is one of the reasons that winning in the markets is a really difficult process.

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Trump, Tariffs, Amazon, the 200 Day Moving Average and Your Process

The last few days have been filled with noise. Trump took to Twitter and attacked Amazon $AMZN for not paying taxes, for allegedly having a below-market deal with the United States Postal Service, and for putting “mom & pop” shops out of business – 90 million American Prime members (and voters) be damned. As if that wasn’t enough to send the financial media into full-blown supposition mode, the administration announced proposed trade tariffs against China. Continue reading “Trump, Tariffs, Amazon, the 200 Day Moving Average and Your Process”

The Condition of the Market Affects Your Trading – Trade Accordingly

Yesterday I posted my watch list with a note that I was risking only .25%. That post led to the following question:

Continue reading “The Condition of the Market Affects Your Trading – Trade Accordingly”

Losing Trades Are a Big Part of Winning Systems

Losses are part of trading. In fact losing positions make up the majority of many winning trading systems. That is, many winning trading systems have a winning percentage that is less than 50%. It seems counter intuitive that you can be wrong more than you are right and still make significant money in markets. But that truth has been proven by many well known traders.

Continue reading “Losing Trades Are a Big Part of Winning Systems”

When Markets Chop, Reduce Risk & Practice Patience

The market environment has not been friendly to swing trading lately. This choppy action started in late November and it has continued. When the overall market is going sideways set-ups tend to break out intraday only to fade before the close or early in the next trading day. Winning trades become much harder to come by and when they do come in, they are much smaller.

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A Stock Chart Cheat Sheet Worth Your $STUDY

I’m not sure who created the below cheat sheet but it is worth sharing. If you spend some time studying it, these patterns will begin to jump out at you when you are looking for stocks to add to your watch list.

Since proper risk management can be the difference between a profitable trader and one who goes bust, knowing the area in which to set your stop is critically important and this cheat sheet does a great job of identifying stop areas for you.

Continue reading “A Stock Chart Cheat Sheet Worth Your $STUDY”