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...
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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...
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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...
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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...
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