Showing posts from February, 2019


MASTERING THE  INTRADAY MARKET   The survivalist trader needs accurate feedback on open positions to take advantage of directional movement and to guard against traps, rinse jobs, and other unwelcome surprises. The best way to accomplish this daunting task is by observing and managing exposure continuously in the intraday markets. While watching every tick isn’t a viable option for many traders, it’s the preferred management route whenever possible. The remote strategies outlined in Part Four offer a useful alternative to folks with real lives away from the financial markets or commitments that keep them from the ticker tape. In the real world, some positions will behave very well, while others go haywire and fall apart. This duality forces the trader to establish an adaptive profile that denotes the prechosen exposure and risk associated with all open positions. This macro control mechanism needs to match external market conditions which in turn require


HOW PICKING A STOCKBROKER Stockbrokers come in many shapes and sizes. Some act as nothing more than a tool to receive the independent chimp’s stock orders. Others play a very active role in the investment strategy of their clients. Still others act as salespeople and can become very obnoxious and pushy. Deciding what kind of broker is right for you can be a difficult undertaking, especially if you have no prior investing experience. Should you get an electronic broker first or wait a while? Do you want investment advice and stock ratings from your broker? Perhaps the two most important considerations are what makes you comfortable and what seems the most convenient. Don’t be discouraged if your first broker or even your first several brokers don’t work out. Be careful whom you pick to help you invest your hard-earned banana. IF YOU’RE READY TO TRADE   So you’ve decided you’re ready to trade. You’ve got some risk capital, you’ve got some knowledge, and now y


PRINCIPLES OF SUCCESSFUL TRADING   As we’ve discussed, trading can be a great business. However, the majority of people who trade fail to make money consistently. In this chapter, we’ll discuss trading principles that are the foundation of my trading. I urge you to read and reread this section. You must understand and apply these principles in your trading to succeed. I can’t stress this enough: The implementation of these principles in your day-to-day trading will allow you to develop emotional discipline. And only with emotional discipline can you become a successful long-term, independent trader. Trade within Your Capital In trading, everyone makes mistakes. Even the best, most experienced traders occasionally misread the market. In addition, you may do everything right on a trade, but something happens out of the blue that causes the market to reverse direction. Either occurrence—a market misread or an out-of-the-blue event—will result in a losing trade. Losing


ONLY TREND FOLLOWING WORKS Do you think you can control the world? I do not believe it can be done. The world is a manifestation of change and cannot be controlled. Trying to control leads to ruin. Trying to grasp, we lose. Just as you breathe in and breathe out, the world is a manifestation of change; sometimes ahead, sometimes behind, sometimes dynamic, sometimes static, sometimes vigorous, sometimes feeble, sometimes being safe, sometimes being in danger. Therefore, refuse to distinguish excesses and extremes. See only oneness. Flow with Infinity and exist in peace and harmony. All trading methods fall into one of two basic categories: 1. Trend-following methods 2. Against-trend methods Trend-following methods try to “Flow with Infinity.” Against-trend methods try to “control the world.” We will now see why the former approach is the intelligent way to engage the markets, while the latter approach cannot succeed in the long run. Trend-Following Me


TRADING IS A BUSINESS   What do you see trading as? Do you see it as: * An exchange, involving the buying or selling of goods or services? * A game that can be exciting for speculators? * A tool, for example, one that enables traders to hedge the market? * A war, albeit one without bloodshed? * A business that happens to be the most difficult thing in the world? Depending on the person giving the answer, there are elements of all of these in trading. However, our answer is that we choose to see trading as a business. There are two basic types of participants in the futures and commodity markets: hedgers and speculators. The hedgers are those seeking to minimize and manage price risk. Speculators are those willing to take on risk in the hope of making a profit. It doesn’t matter whether you are either a speculator or a hedger. We all need to treat trading as a business. Why Do You Need a Business Plan for Trading?   In the following, we wi