"trading" Posts
Essence of Trading: The Three Pillars of Critical Thinking (Part 1)
By Lawrence
Critical thinking is not just thinking hard or deep into an issue and then decide whether to believe it or not. It is a common misunderstanding that everyone can just do that at will if they try. Most of us has to be trained to have the necessary critical thinking skills to make it functional. […]
Essence of Trading: Importance of Critical Thinking And Why It Is Not Enough (Part 1)
By Lawrence
Critical thinking is a concept that we learn partially throughout basic education. For some who eventually enter graduate studies, it suddenly becomes a requirement. It is as if the concept does not require learning at all. I find this very odd indeed as critical thinking is not something that comes naturally like our animal instinct […]
Time To Slack Off
By Lawrence
Over the weekend I reviewed my performance so far this year. I know I have reached my own base line trading goal for the year since September. At the end of October, I hit my ambitious goal as well. Whenever that happens, I reduce position size and trading setups that I will use until the […]
Essence of Trading: Trading Is Easier Than Most People Think
By Lawrence
We were told, by traders before us, that trading is difficult – difficult to learn, difficult to turn a profit, and difficult to master. Their words, together with almost every book out there written on the subject, have painted a very grime picture for anyone who wants to learn trading and profit from the financial […]
Caught Me By Surprise
By LawrenceToday I have to attend to some personal matters in the afternoon and the preparation work used most of my time last night and this morning. What I missed was that I did not check my timing models where Emini S&P is due to go north today as the bearish one was about to exit […]
Forex Traders Profitable Rate Much Higher Than Stocks and Commodities Traders
By LawrenceReports from the US forex brokerages indicate that retail forex traders are quite profitable over the past few quarters. Some firms reported that they have close to 40% of their retail clients being profitable in last quarter 2011. The survival rate of stocks and commodities traders is below 10%. That is a well known figure […]
Defensive Money Management Explained (Part 6) – The Crash and Burn of a Winning Trading Model
By Lawrence
Occupy Movement Potential Impact on Monday
By LawrenceThe Occupy Wall Street movement has now turned global this weekend. By Monday if the protest turns messy it can affect the operations of global markets. Be prepared to walk away from trading for a few days if necessary.
Mailbag: Stop Trading When You Are Tired
By LawrenceReceived a subscriber’s question together with his trade records organized in an Excel file. He asked how he can improve his trading performance as he is very frustrated that there seems to be a barrier blocking him from performing better.
Market Internals 2011-11-20
Since last update we got our pullback based on market breadth. Well, there were actually 2 pullbacks with one very fast melt up in between. 3-day advance issues gave us the extremes with early warning on all of them so they did not catch us by surprise. The last selloff over the past few days […]