Published in March 11th, 2010
BarroMetrics Views: Few Are Chosen
Many hopefuls come to to trading looking for their place in the Sun. The attraction comes from our human core believe that we are the masters of our own destiny - that we have a say in the role we play in life - that our destiny is not fixed at […]
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Published in March 8th, 2010
BarroMetrics Views: Risk Management
What is risk management? For me it’s a set of tools that balance maximization of profitability with minimization of risk of ruin. It’s made up of two categories:
Trade Management: the strategics and tactics to manage an initial exit (when we first place a trade) and the strategics and tactics to manage our […]
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Published in March 5th, 2010
BarroMetrics Views: Uncertainty and Trading III
I thought I’d round off the week with this idea.
On Wednesday, I took time off from my schedule just to gather my thoughts. I had been feeling uneasy about the EURUSD trade and not because I had been trading a larger than normal size. My gut was feeling the way […]
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Published in March 3rd, 2010
BarroMetrics Views: Uncertainty and Trading II
Baz asked if I was sure about uncertainty? I am not sure whether he means if I am sure that uncertainty is a trader’s perpetual companion or whether he believes there is certainty in the markets…..
But for the purposes of this blog, I’ll assume that meant whether I am sure […]
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Published in March 2nd, 2010
BarroMetrics Views: Uncertainty and Trading
Humans crave certainty and when the activities we engage in fail to provide it, we go out of our way to seek and/or create it. This I believe is the main reason why patently absurd ads in the trading game are so successful.
Not too long ago, I was at a dinner. […]
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Published in February 28th, 2010
BarroMetrics Views: The Rider, the Elephant and the Path
My apologies for not posting on Friday. Please take this as a replacement blog.
In the new Neurological model of learning, the key initial step is what Coyle calls, ‘the ignition process’.
Many newbies (I’d say, too many) skip it either because they don’t know it’s an essential step […]
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Published in February 25th, 2010
BarroMetrics Views: Trading Our Beliefs
When I first started trading I confused ‘reality’ with my ‘perception of reality’. As a result, I fell into the ‘certainty’ and ‘hindsight bias’ traps.
The best way to explain this insight is by way of example. Figures 1 and 2 show the EURUSD and S&P with yesterday’s price action between 9:30 […]
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Published in February 18th, 2010
BartroMetrics Views: The Decision-Making Process
Some e-mails I have received about the recent blogs would suggest I am not explaining myself clearly. So, let me state it in a one-line comment: I believe that the best decisions are the ones that combine head and heart i.e. reason and intuition (and intuition signals its intent through our […]
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Published in February 17th, 2010
BarroMetrics Views: Intuition and Trading
A Pete Steidlmayer saying: ‘most traders want to operate at 120% effectiveness; the reality is we need be satisfied with a consistent 60%’.
Well there wording is not exact but the meaning is. Pete was saying that too many traders expect to operating at peak effectiveness all of the time and that […]
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Published in February 8th, 2010
BarroMetrics Views: Barriers to Success Patterns III
This is the final in the series. To date we have identified the barriers, and have suggested solutions for the trader who cannot pull the trigger. Today we have a look at solutions at the trader who enters without forming a risk management plan - before or after entry.
I […]
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