Con-tango

February 28, 2006
In Lessons, Methods
3 comments

An interesting method?

Internat2002rafalolbinski I was going over Van Tharp’s book, which is a must have, – to present it to you guys in a future post; when I ran into a very simple volatility breakout method in page 3, and I couldn’t resist posting it.

I think this would be a nice method to trade ESs and NQs.

February 27, 2006
In Lessons
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Testing… 1, 2, 3

Jesse Livermore

I recognized the importance of testing while reading Edwin Lefevre’s unforgettable book Reminiscences of a Stock Market Operator (for a Jesse Livermore photo album, check this site).

Up until that moment, I had been searching for a magic bullet, or a magic formula that would signal entries and exits to my trades.
Continue reading…

February 26, 2006
In Lessons
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Manipulation?

Faceoff I don’t know why, but when I think about deceptions, Zidane’s comments in an article I read several years back come to mind. For those who don’t know Zidane, he’s one of the great soccer players of our time, he not only has a great technique, but also excels at thinking ahead of the game and making awesome passes.

February 24, 2006
In Lessons
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Follow the ball!

Salome1999rafalolbinski I guess we human beings cannot act on thin air, so we make constructs that help us make those decisions; especially, when prices have only a one dimensional movement – they either go up or down.

February 23, 2006
In Lessons
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The coin toss

Let’s say you toss a coin – you know nothing about the direction of the markets; heads you buy, tails you’re short. Let’s add that you will place a stop order 2% away from the transaction price to bail you out of the trade, as well as a limit order to take profits 6% away from that same entry price.

February 22, 2006
In Lessons
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The big picture

Viewer2_1 Again, the concept of speculator or observer is relevant.

It’s common sense to observe and understand the big picture before the specifics; hence, an understanding of the current economy and the direction of the markets precedes analyzing a particular stock or future.

February 22, 2006
In Lessons, Psychology
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I lost $10,000 today!

Pain_1 My God, I can’t believe it;

I’ve lost 10 gees today!

What happened? I just couldn’t believe it. I’d been frozen, I literally
couldn’t move, less pickup the phone and call my broker… Impossible to
recognize the loss myself – less to another person the hole I’d dug myself
into; admit the loss, never…

Tomorrow will be a better day, it’ll come back…