Showing posts with the label the-new-trading-for-a-living-free-|


THE NEW TRADING OF A LIVING PRACTICAL DETAILS Catastrophic Stops: A Professional’s Life Jacket Soon after moving to a house near a lake I bought a kayak, and immediately went  shopping for a life jacket. All I had to do to be legal was to have a jacket in the  kayak—any cheap piece of junk would suffice. Still, I spent good money on a quality  jacket that felt snug and didn’t interfere with rowing when I wore it. All I planned to do with that kayak was to paddle peacefully on a lake, not any where near white water or currents. I never expected to actually need that jacket.  Did I waste my money buying it? Well, if ever some motor boat clips me, then wear ing a high-quality jacket can make the difference between life and death. It’s the same with stops. They’re a nuisance and often cost you money. Still, there  will be a day when a stop will save your account from a life-threatening collision.  Keep in mind that a bad accident is much more likely in the market th


THE NEW TRADING OF A LIVING MASS PSYCHOLOGY Wall Street is named after a wall that kept farm animals from wandering away  from the settlement at the southern tip of Manhattan. The farming legacy  lives on in the language of traders. Four animals are mentioned especially often on  Wall Street: bulls and bears, hogs and sheep. Traders say: “Bulls make money, bears  make money, but hogs get slaughtered.” A bull fights by striking up with his horns. A bull is a buyer—a person who bets on  a rally and profits from a rise in prices. A bear fights by striking down with his paws.  A bear is a seller—a person who bets on a decline and profits from a fall in prices. Hogs are greedy. Some of them buy or sell positions that are too large for their  accounts and get slaughtered by a small adverse move. Other hogs overstay their po sitions—they keep waiting for profits even after the trend reverses. Sheep are passive  and fearful followers of trends, tips, and gurus. They som