Published in December 31st, 2007
I was going to write on trading plans, a subject that will probably take a couple of posts. But Ms A. Wang sent me a blog by Dr. Brett Steenbarger, Virtual Trading Groups: Getting to the Next Level, which contained a topic I thought more appropriate to end 2007.
In that blog, Brett writes that […]
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Published in December 28th, 2007
In these plans, I look to prepare for Murphy’s Law: “if there’s anything that can go wrong it will’ (BTW did you know there is a whole web site dedicated to Murphy’s Law? www.murphys-laws.com).
The important point here is to prepare for these contingencies before they happen.
Let’s take the most difficult problem first.
What happens if your […]
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Published in December 27th, 2007
My starting point each September 1 (my year runs Sept 1 to Aug 31) is my business plan. Since I treat trading as a business and we all know most, if not all successful businesses, have a business plan, I thought this the appropriate place to begin Success Routines and Habits.
I prepare my Business Plan […]
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Published in December 26th, 2007
I trust you all had a great Xmas!
Over the next few blogs, I’ll be considering the routines and habits we need for trading/investing success. In this post, I’ll be examining the pre-conditions that are necessary.
Routines and habits are actions. There are 5 pre-conditions to effective action:
The quality of our preparation and planning
The will to execute our […]
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Published in December 24th, 2007
I suggested a trading strategy on Friday before the market opened: buy a breakout of the 90 minute range if the open-gap failed to close in the first 90 minutes. What I’d like to consider today is why I’d sell the open-gap on Thursday and look to buy Friday’s.
The short answer is context.
Assessing context is […]
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Published in December 23rd, 2007
I don’t usually post on weekends. But it’s Xmas so think of this as my Christmas present to you for your support. Merry Christmas and Thanks!
In this post I’ll conclude the Wyckoff series and suggest source materials in case you’d like to take your studies to another level.
Like Steidlmayer, Wyckoff’s work evolved over time - […]
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Published in December 21st, 2007
Yesterday I posed 3 problems that those using Wykcoff had to overcome:
How do we define market direction?
How do we determine whether volume for any given period is net selling or net buying?
How do we overcome volume cyclical patterns (e.g the pattern in financial futures) or sessional patterns (e.g. the pattern found in intra-day ES data)?
The answers […]
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Published in December 20th, 2007
In this post, I introduce Richard Wyckoff. Here’s how Wikipedia describes him (http://en.wikipedia.org/wiki/Richard_Wyckoff)
“Richard Demille Wyckoff (born November 2, 1873; died March 19, 1934) was a stock market authority, founder and onetime editor of the Magazine of Wall Street (founding it in 1907), and editor of Stock Market Technique……..”
But the write-up does little justice to a […]
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Published in December 19th, 2007
I take the view that the S&P (ES H8) is on the cusp.
In “The US$ and the Stock Market”, I outlined my view of the fundamental context for the US stock market.
Technically:
The 12-month swing shows that a close below 1455 would signal an Upthrust Change in Trend Sell Signal. See Figure 1.
FIGURE 1 12-M S&P Cash
The 13-week swing […]
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Published in December 18th, 2007
My father was a charismatic character: a champion sportsman who landed in HK to start a job as a lowly accountant and by the time he died, had risen to become the Managing Director with an equity share. He was a well-liked, charismatic character who taught me much: the value of keeping your word, integrity and fair […]
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