Published in November 14th, 2008
I was lucky enough to be given a review copy of Dr. Brett Steenbarger’s new book: The Daily Trading Coach.
It’s due out in April 2009 and I’ll do a book review around March. In the meantime, let me say that it is one of the best books, if not the best book, on trading psychology […]
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Published in November 13th, 2008
The market invalidated my possible short-term 5-d buy when it broke down and reached the Primary Buy Zone at 865 to 839 basis cash.
Chart 1 shows that a bar’s average volume in this leg down was 53323 compared to the previous 650140. However yesterday’s volume was a normal 576418. The fact that yesterday’s volume was […]
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Published in November 12th, 2008
Here’s an interesting post by Colin Twigg. The point he makes is a good one. As long as the government opens the purse strings, there will always be someone extending his hand for help - but here’s the problem: more often than not, handouts fail to provide the benefits they were supposed to deliver.
There is […]
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Published in November 11th, 2008
It’s all around us - fear. In the Hedge Fund world, redemptions abound. Even in my fund which is a private, lockout-closed fund, I experienced some redemptions. My terms lock in an investor for 3 years unless I lose 30% of capital or 30% of capital and profits whichever is the greater. Effectively, the maximum […]
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Published in November 10th, 2008
In S&P and Processing Incoming Information, I set out my long-term views for the US stock market (i.e. the context to my trading). In today’s blog, I’ll update the short term picture.
Chart 1 shows the 13-w picture (quarterly trend). We see a series of price and time targets at the 10/10/08 839 low. This suggests […]
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Published in November 7th, 2008
Tonight, continuing from yesterday’s blog, I want first to look at the elements of ‘relaxed’ focus.
We start by asking: in trading what causes our anxiety? The answer is our emotional response to price action. If we view price action as a threat rather than as a source of information, anxiety arises, and we […]
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Published in November 6th, 2008
A conversation today led me to think about focus. A friend asked me:
“How can you bear to stand aside from the markets?! Look at the opportunities offered by the current volatility!”
I told him I found it easy because my first focus was to preserve my capital; my second focus was to execute consistently; and only […]
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Published in November 5th, 2008
Today I’d like firstly to answer a question from Jon Bailey. Jon asked why I wrote in my blog of Nov 3 : “It would be very bearish if the market breaks below 839 without reaching 1044 to 1018″.
This idea comes from an inference from Market Profile ideas. Sideways markets rotate high-to-low-to-high-to-low etc. An […]
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Published in November 4th, 2008
In my recent Australian tour, one fact was brought home. The current recession will go far beyond the trading world. Many of my friends had their retirement funds frozen as a result of the Rudd’s government inability to think things through.
In HK, some of my friends have lost their jobs and in Singapore many a […]
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Published in November 3rd, 2008
Well folks, I’m back. A word of thanks is called for.
Thanks to those who have kept visiting the blog despite my failing to post for a few days.
Thanks to those who noticed I had not been writing my blog and wrote in to enquire if all was well.
Thanks to my friends who have been supportive.
The […]
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