Capitalizing on the Mistakes of Others

True confession: I am an indicator junkie. Whether I’m actually ‘recovering’ is uncertain, as I have a rather hefty bill each month for my programmer. One of my favorite market conditions to build indicators for is divergence. Technically, divergence...

Riding Big Waves

Markets constantly ‘fade’ the obvious, which can be confusing to aspiring traders. However, this teaches us to conceptualize the future in terms of probabilities, rather than in purely logical terms. The human brain, however, abhors uncertainty. This puts...

Back to School

Traders pay for our education. When I make a mistake and grossly underperform my chosen market (NQ), I go over my charts to discover errors of commission and omission… what I did wrong and what I missed. I like to do this on Saturday mornings over a cappuccino....

Humble Pie

Days like today (a big down day) are humbling to the pundit in me who thinks I know what is going to happen. I traded largely from my bullish bias, so I was picking up nickels and dimes, when I could have made a small fortune on the short side. I know one thing about...

Planning vs Reacting

Active traders are often wrong about market direction; what matters is how quickly we recognize the fact. Having a written Trading Plan helps. I would argue that all active traders think they have Trading Plans, it is just a question of what type. If you lack a...