Leading Indicators

Many traders bemoan the fact that indicators are ‘lagging’ and seek something that actually leads price. Some traders think that volume leads price, but in actual studies that is only true in high volume situations. Let’s get more practical. The...

The Uncle Point

The mechanics of trading can be reduced to the common sense expression “buy low, sell high” (the reverse for shorts, of course). It is for this reason that some trading coaches argue that the exit is the most important element in trading. This advice has...

Trading our Opinions

The market sets “traps” for traders. One doesn’t have to be paranoid to believe this; such “traps” occur all the time; whether they are orchestrated or accidental does not really matter. By a “trap” I simply mean a type of...

Don’t wait for ‘confirmation’

Trading is about assuming risk. That means we have to place our bets in the dark. We cannot see around the corner of time. Of course, jumping in like this goes against our natural human tendency to look-before-we-leap. Therefore, many traders hesitate to pull the...

For Traders, Risk is our BFF

I tested a system yesterday that took 20 trades on the S&P futures on 11/14 with a 95% win rate. It is a trend-following system, so it works well on trendy days. Although I developed the system myself, my own trading results yesterday were not stellar. When I...