Archive for April, 2008
Wednesday, April 30th, 2008
Thinking ‘Three Moves Ahead’ V
In his chapter on luck, Bob Rice says: “The expression ‘the harder I work, the luckier I get,” is not just cute; it is mathematically correct.” In short, if we follow a plan, and execute it consistently, then we’ll place ourselves in a position to ‘get lucky’. While Bob is speaking about chess and business, […]
7 Comments » - Posted in Generic Success by ray
Tuesday, April 29th, 2008
Thinking ‘Three Moves Ahead’ IV
We are talking about the impact of time on trading. In my last blog I spoke about using time to manage our trades. In this blog, I want to consider the impact time has on risk.
I use the 18-day swing as my trader’s timeframe i.e. the monthly trend defines my strategy: ‘long’, or ’short’, or […]
3 Comments » - Posted in Generic Success by ray
Monday, April 28th, 2008
Thinking ‘Three Moves Ahead’ III
In Chapter Four of Three Moves Ahead, Bob Rice deals with the issue of time. He starts with the sentence: “Run out of time, and you lose. It’s the same in business and chess”. He could have added “and in trading”.
Pete Steidlmayer taught me that the greatest enemy to keeping losses small is […]
3 Comments » - Posted in Generic Success by ray
Friday, April 25th, 2008
S&P - A Brief Detour from Thinking Three Moves Ahead
Last night the S&P moved in the target area where I would institute fresh shorts: above 1396 but below 1406. Remember that a close above 1406 triggers a buy signal for a target to 1576 to 1557 - all figures basis cash.
Figure 1 shows the 2 Congestion markets in play.
FIGURE 1 Market Profile
The sideways […]
3 Comments » - Posted in Written Plan by ray
Thursday, April 24th, 2008
Thinking ‘Three Moves Ahead’ II
I have to give a presentation tonight so I am posting early.
Yesterday I suggested certain questions we ought to ask ourselves before we take a trade. Today I’d like to take the preparation, ‘the opening move’, one step further.
The questions help the analysis for the trading plan and for the risk management plan. They don’t […]
7 Comments » - Posted in Generic Success by ray
Wednesday, April 23rd, 2008
Thinking ‘Three Moves Ahead’
Before I start today’s blog, I’d like to turn to a question Manish Shah, <manish.shah@centrum.co.in>, asked. By the way, I’d be grateful if questions are posted to the blog - that way, all benefit. Here’s the question:
I want to ask you a small question. I am not an out an out mechanical trader. But I […]