Archive for November, 2007
Wednesday, November 28th, 2007
A Brief Rest
I’ll be taking a breather from the blog until next week. Over the next few days, I’ll be in Shenzen, China speaking at the conference there - see http://www.theatic.net/2007/index.php?city=sz&lang=en
Catch you all next Monday!
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1 Comment » - Posted in Uncategorized by ray
Tuesday, November 27th, 2007
Setup, Entries and Initial Exit Strategies II
Today I am going to consider my approach to exits and to do that, I need to explain my approach to setups and entries.
Whenever I think I found a robust setup (i.e. a setup that is likely to produce predictable results in the future), I ask myself two questions:
Under what circumstances did the setup make […]
2 Comments » - Posted in Written Plan by ray
Monday, November 26th, 2007
Setup, Entries and Initial Exit Strategies
Last Thursday a student said to me: “It’s (the ES) in the zone! Why have a setup? If it goes up buy it!”
She makes sense, doesn’t she? Yet setups are an important part of my approach; and, unless I have one, I’ll bypass the trade. In this post, I’ll look at why I use setups […]
1 Comment » - Posted in Written Plan by ray
Friday, November 23rd, 2007
The Anatomy of a Bubble
I have just completed reading a good book by James Montier, “Behavioural Investing, a practitioner’s guide to applying behavioural finance”
One of the more interest chapters was ‘The Anatomy of a Bubble’. James postulates that bubbles tend to move through 5 stages:
displacement
credit creation
euphoria
financial distress
revulsion
The author suggests that displacement is usually an external event that creates opportunities in […]
4 Comments » - Posted in Miscellaneous by ray
Thursday, November 22nd, 2007
Thanksgiving
It’s Thanksgiving in the US. This means I have a holiday and time to reflect. As a trader, I get caught up with the markets (especially with the volatility of late) as well as the other hurley burley events in my life. It’s good to take time out to smell the flowers; to take time […]
2 Comments » - Posted in Miscellaneous by ray
Wednesday, November 21st, 2007
A Review of My Approach
Success in the markets requires a plan with an edge. But no matter how profitable our plan, we need to consistently execute it. And, we are more likely to consistently execute our plan if it fits our personality. Accordingly, because I am predominantly visual, my plan tends to focus on the visual aspects of trading. […]