Trader Mike

Here’s a little something I found at BondTrader’s weblog. He has a link to a page that contains quotes from some top traders:

Success Leaves Clues

There are certain ‘business rules’ that triumphant investors and traders adhere to.

If you were able to model these business rules then maybe it’s possible for you to also achieve similar results.

You would need to understand and appreciate the beliefs, attitudes and behaviour, as well as the timing and sequencing of the strategies these individuals implement.

In order to assist you we have researched a number of modern classics, and extracted the following citations.

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Today reminded me of one of William Eng’s trading rules: Bear markets have no supports and bull markets have no resistance. The market sliced through the mid-May’s overhead resistance as if it wasn’t even there. In doing so, the head & shoulder pattern that I pointed out Friday was invalidated. Led by the NASDAQ, with a 3% gain, all the indices notched new highs for this 2,003 rally. This was definitely not a good day to be short. (ouch!)

Once again May is upon us. Many a researcher has pontificated on the performance of the market between May and October. No doubt these clowns, er, experts will be all over CNBC today. I guess I’m just skeptical by nature, but I don’t like to follow seasonal patterns. I figure I’ll just let the charts tell me what to do. I get even more skeptical when the pattern is so widely known. Add that to the fact that there are so many bears right now, and I think we have the makings of an explosive rally. Let’s see if we can get a summer rally this year.