Matching the Time Frames of Your Analyses and Your Trading
Three common mistakes that traders make was the topic of a recent post; if I had to add a fourth, it would be letting longer-term political and economic biases interfere with a shorter-term read of market strength and weakness.Toward the end of last we...
Morning Briefing for July 15th: Building on Strength
Here we see the S&P 500 e-mini index (ES) and the substantial rally that has ensued once we could not sustain the move below the May/June lows. The resulting thrust is taking us well into the prior trading range, shaking out the bears. The rally ...
Mindfulness and Mindlessness in Trading: Three Mistakes I See Traders Making
Certain mistakes pop up repeatedly in my discussions and emails with traders. Here are three of the most common:1) Trading Without Context - Many traders will enter positions with little more than a chart-based "setup" or a hunch that the market is h...
Preview of the Chicago Trading Seminar
Friday's seminar will focus on reading the psychology of markets, drawing on lessons learned from professional traders. The session has filled up, but keep an eye out for a posting of the PowerPoint slides from the seminar. Here are some of the topic...
Catching False Breakouts
A false breakout occurs when we get new highs or lows following an extended trading range, only to see trade return to that range. These occur at every time frame: we had a false break last week in ES that took us below the May/June lows, only to see...
Morning Briefing for July 14th: Consolidating After Strength
The GS earnings were a bit of buy the rumor, sell the news, as we fell back into the overnight range going into today's open (top chart), moving below VWAP. On a longer term basis (bottom chart), you can see that we are consolidating above the prior t...
