A common problem that many futures traders run into is that they start trading, make some decent profits, then all of the sudden they encounter what seems to be an endless stream of losses. Eventually they end up losing their profits and eating away at their trading capital as they struggle to try and figure… Read More »
On September 16, 1992 – later dubbed “Black Wednesday” — the day the British government abandoned the European Exchange Rate Mechanism (ERM), and the pound was devalued by 20% George Soros made over $1.2 billion on his short sterling trade and was dubbed “The Man Who Broke the Bank of England.” His Quantum Hedge Fund… Read More »
PTJ is not only a successful hedge fund manager and philanthropist, but also very original and clear thinker. Here are some of his best market-related insights: 1. Markets have consistently experienced “100-year events” every five years. While I spend a significant amount of my time on analytics and collecting fundamental information, at the end of… Read More »
I’ve had the question of whether I have a trading plan template or anything like that I can provide or recommend a couple of times in recent weeks. In short, the answer is no, but that’s because I’m hesitant to recommend one. You see trading plans necessarily must be very personalized things. That makes the… Read More »
If you’re reading this blog post because you actually think there is some one thing that successful traders know that unsuccessful ones don’t, then let me first say: There is no single secret to successful trading! And by that I mean there is no secret wisdom passed down from master to pupil, or sacred texts… Read More »
Back on October 13, when the stock market was in free-fall, I prepared this chart showing a potential megaphone pattern. With major indicators (such as the MACD and stochastics) looking decidedly bearish, the idea that a rally would soon return the S&P 500 to the 2,030 area seemed crazy: Three weeks later–ding-ding, we have a winner!… Read More »
Traders should have a very flexible mindset about which way a trade can go when they enter it, but be very rigid about taking their stop loss when it is hit. Traders should be very flexible on profit expectations during each market cycle but very rigid about following their robust method during each cycle. Traders… Read More »
By embracing a loss, really feeling it, I tend to have less fear about a potential loss the next time around. If I can’t get over the emotions of taking a loss in twenty-four hours, then I’m trading too large or doing something else wrong. Also, the process of rehearsing potential losses and confronting actual… Read More »
Markets have been particularly volatile recently, at least for intraday traders and daytrading can create a significant amount of stress. Because our bodies are designed to adapt to stress, we may fail to realize that we are stressed out. Here’s an inventory of common trader behaviors that may signify excessive stress. Signs of Stress A… Read More »