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The biggest problem is that traders cannot articulate what they want to see. Thinking of market movements in terms of RSI, Stochastics, MACD, Elliot Waves, etc. never help in articulating the picture.
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The other day I wondered about a way to short subprime. The ABX subprime index is one way to do just that...
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The Wallstrip Trader understands everything there is to know about a stock. Jim Cramer takes it a step further.
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In my earlier post about a loss in RIMM my thoughts ranged from a conspiracy against me to flaws in the trading information system. It turns out that the entire problem was mine alone.
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The recent action in the market, coming on the heels of the weak rise noted in the Trading Psychology Weblog, calls to mind several principles of short-term trading that have served me well over the years.
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the risk of ruin is the percentage probability that a trader’s account balance will reach zero. This will either result in the trader ceasing to speculate on the financial markets, or having to stump up another chunk of capital in an attempt to make bac