Its Amazing What Happens.
When you remember you are simply a passenger and you leave things alone.
Let Compounding Do Its Work
Hendrik Bessembinder’s latest paper asks the question – which US stock has generated the highest long-term returns?[i] The answer is Altria Group (formerly known as Philip Morris). Over 98 years the tobacco company produced a cumulative return of 265,000,000.00 percent! Based on this it would be easy to write about how lucrative it can be…
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Why Do Traders Trade?
Here is a quick quiz. Why do the majority of traders trade? If you answered to make a buck then you are unfortunately wrong. The overwhelming evidence is that the majority of traders trade for entertainment value. If allowed to make a lesser gain but trade more versus trading less but making more traders generally…
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Why Make It Difficult Part 3?
A few weeks ago I lamented the desire of traders to make their lives much harder than than they should be. To illustrate this I posted the chart below – It highlights the power of drawing straight lines to define zones of congestion and then going long or short based on the direction of the…
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The Role of Indicators
Many traders confuse the generation of indicators and playing with technical analysis software with trading. It is not. I doubt you could find a truly proficient trader anywhere in the world who was interested in endlessly experimenting with indicators. They certainly don’t spend hours trolling through the new scripts that have been added to a…
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Why We Wait
One of the issues with trading is that the market seems to be on a quest to teach you to trade badly. It amplifies every bit of insecurity and paranoia you may have and in doing so it ramps up your FOMO. The charts below are of London Cocoa taken at different intervals and they…
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Market Wrap – The Market Gets Interesting
My market moves this week! In this episode, Chris Tate delves into what the US market hitting new highs means. Also, he examines how two stocks can dramatically impact the trajectory of an index and how this may affect any decision you might make. He also looks at how difficult it is to trade geopolitical…
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Oil….Again
Here is an example of why geopolitical events are hard to trade even when you get a strong signal. I exited with a small loss which is the name of the game because it keeps you in the game. From an anecdotal perspective, I do find crude harder to trade than back in the day.…
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China A50
When sentiment changes it can change very quickly. This and the related Hang Seng are strong examples of how a ballistic climb is unsustainable and will reverse suddenly.
