Trading distilled down to its simplest form is a pattern recognition numbers game. We use analysis to identify patterns, define risk and determine profit targets and the trade works or it doesn’t. In either case we go on to the next trade. This is simple to comprehend yet extremely difficult to do. In fact, trading is probably the hardest thing you’ll ever attempt.
I started my trading journey back 1999 and made more money in a year than I’ve seen in a lifetime. Unfortunately, I lost it all within the next year when the market turned down. It didn’t take long to realize I didn’t know what I was doing and the only reason I made it as […]
I’m a very good example of what you should not do as a trader. I’ve been trading for almost 20 years and have made every mistake imaginable to mankind (womankind?) in this arena. Yet I’m still standing because I have learned from my mistakes (well mostly). Without a doubt, one of the most important lessons […]
Recently, while traveling through the Northwest, I had the opportunity to share coffee with Jane and talk with her about algorithmic trading and systems development. We discussed at length the trials and tribulations of our respective trading journeys. She suggested that it might be an interesting post to hear from a member as to how […]
There are number of topics that come up on a regular basis on the trading blogosphere, but the one most important and the most frequently talked about, is “how the markets are rigged.” Anyone who has been in this business for any length of time can tell you with 100% certainty the markets are rigged. Plain and simple, the markets, specifically the exchanges, are totally geared towards screwing you, the retail investor.
“The Underwater Equity curve, popularized by Jack Schwager, presents a trader with a unique way of evaluating equity performance. Using this graph, the trader can view the relationship between time and magnitude of drawdown as they relate to new equity highs. This graph enables the trader to look at the performance from a pessimistic viewpoint pinpointing how much drawdown occurred and how long it took to rebound to hit a new equity high.”