BarroMetrics Views: Trading Resources I Like
From time to time, I review sources on the net that I like and find useful. I thought it was time that I posted one of these because quite a bit has changed.
Psychology
- From the time I found Dr. Brett’s blog, I loved it. Sad to say that in July 2010, his duties with a hedge fund meant that the trading world would no longer have his regular missives. Still he has left the Blog site on. If you have never read Dr. Brett’s articles, do yourself a favour and wander over and have a gander:
http://www.traderfeed.blogspot.com/
- Denise Shull looks at winning psychology from quite a different viewpoint to Dr Brett’s. And as with all trading matters, ‘different means different’ not ‘worse’. The last time I spoke with Denise, she mentioned that she is doing a lot more work with hedge funds. Now because she is from the US, I hope that this does mean that retail traders will again lose an invaluable resource. For reasons I cannot fathom, US institutions skirt educators that assist the retail market. Surely what is important is quality of the educator, not whether she is assisting the instituition and/or the retail section.
I found Denise’s E-Learning Course great value for money.
Quant Studies
This has not changed. The best site and fabulous value for money is Rob Hanna’s Quantifiable Edges. Rob’s approach to trading is very different to mine and that means I find even more value in his work. He runs a Blog site: http://quantifiableedges.blogspot.com and a paid subscription site: http://www.quantifiableedges.com/
I cannot say enough on the value I get from Rob’s work. What I like about Rob is his clarity of thought and the way he runs his quant testing. For me, he is always worth a read.
Sentiment Trader also runs some quant studies which do prove useful from time to time. I use Sentiment Trader mainly for ’sentiment’ assessment.
Sentiment
I look at two indicators of sentiment:
Although they both measure sentiment, the methodologies are very different. I used to prefer Whisper Numbers because they covered not only US Stocks but also commodities and currencies. But they have dropped the latter service.
The current service does also carry numbers for Bonds, and Gold stocks but speaking for myself, the ratings there do not provide the results as their Stock Market ratings. I tend to lean to Sentiment Trader.
Sentiment Traders’ “Smart and Dumb Money” Rating, I find very useful. It’s the combination of the two that provides great warnings of overbought or oversold conditions in US Stocks.
Normalised Volume
Only one site (at least that I know of) carries this for stocks, MarketVolume.
Normalised volume for financials is important because of the tendency for volume to rise to roll over, decline after roll over and then recycle the process. Normalised Volume overcomes this problem.
For other futures instruments, currencies, grains etc, Kym Haines has written a great program. You can contact Kym on “Kym Haines” <khaines@jordanit.com.au>.
Market Profile and Market Delta Volume
Again the only firm that carries the data. For me the info is essential to my analysis of the markets: MarketDelta
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