31 August 2014 - 18:49 pm
1.No one Knows with 100% certainty whether the trade will be profitable or not
2.No one knows how much money will be made or lost on a trade
3.If the Trader does not control the profit outcome and does not know with 100% which trades will work ,then a the trader should spend 100% percent of his time concentrating on the only element of the trade he can control-the risk of the trade.
26 August 2014 - 20:22 pm
This chapter gives several examples of different peoples method of placing their trades, and uncovers the difficulties that many people have in following a trading method. Much of the difficulties lie in the behavior pattern of avoiding punishment. A speculator may make mistake and know that he is making them, but not why. He simple calls himself names and lets it go at that.
Mistakes are always around if you want to make a fool of yourself. Mistakes are part of the human condition, and should not cause lost sleep. But being wrong – not taking the loss – that is what does the damage to the pocketbook and to the soul.
Trading Commodities rather than stocks partakes more of the nature of a commercial venture than trading in stocks does. Commodities are governed by one law in the long run, supply and demand. Fundamental information is more concrete than in Stocks, where the investor must guess about many influences.
Technical analysis, or tape reading, works exactly the same for stocks as for cotton or wheat or corn or oats. Still, the average trader from Missouri everywhere will risk half his fortune in the stock market with less reflection than he devotes to the selection of a car. Today the popular analogy is that most people spend more time planning their vacation than they spend planning for their retirement. >> Read More
26 August 2014 - 15:26 pm
CME Group Inc., the world’s largest futures market, halted all of its Globex electronic trading markets, including gold and silver, for four hours due to a “technical glitch” yesterday. This is the second time this has happened this year.
CME halted trading on its electronic platform and said it was due to “planned software reconfigurations.” CME, which owns the Chicago Board of Trade, New York Mercantile Exchange and other markets, made the reconfigurations over the weekend as part of ongoing upgrades to technology, a spokeswoman said in a statement.
Market participants were left scratching their heads as to why the “planned software reconfigurations” did not take place prior to the commencement of trading.
All other Globex electronic trading markets, including U.S. Treasury’s, oil, gold and U.S. stock indexes were affected with many markets having order routing problems.
A note on the CME Group website said “CME Globex markets will Pre-open at 20:30 Central Time and Open at 21:00 Central Time. All day and session orders, including GTDs with today’s trade date will be cancelled. All GTCs that have been acknowledged will remain working.”
Earlier, trading was suspended indefinitely. Any day orders that brokerages attempted to file and any orders that were filled, dated today were canceled. >> Read More
The electronic trading of futures through CME Group’s (NASDAQ: CME) Globex platform was halted Sunday evening, the company said on its website.
The Chicago-based futures exchange has not released any information about the delay, only saying on its website that the open has been delayed and that all futures products, with the exception of Bursa Malaysia Derivatives, were halted at 6:45 p.m. EDT.
CME’s Globex platform provides access to futures and options on interest rates, stock indexes, foreign exchange and commodities. Although gold futures haven’t started trading, the cash or spot market, which trades globally, is still active. As of 7:53 p.m. EDT Kitco.com live chartreported spot gold at $1,277.00 an ounce.
At 7:30 p.m. EDT, the company posted another update on their site saying that all trades made at the open will be “busted.” >> Read More
17 August 2014 - 11:15 am
The hardest thing about trading is not the math, the method, or picking the right stock, currency, commodity, or futures contract. The most difficult thing about trading is dealing with the emotions that arise with trading itself. From the stress of actually entering a trade, to the fear of losing the paper profits that you are holding in a winning trade, and most importantly dealing with the emotional lows of a string of losses or the highs of many consecutive wins the bottom line is how you deal with those emotions will determine your long term success in trading more than any other one thing.
To manage your emotions first of all you must trade a robust trading methodology that is profitable and you have to know that it will be a winner in the long term if you stay disciplined. You also must trade your method with proper position sizing and risk management to keep the volume down on your emotions and ego. If you have that the next step is the management of your emotions.
You must understand that every trade is not going to be a winner and not blame yourself for equity drawdowns if you are trading with discipline.
Do not bet your entire account on any one trade, in fact risking only 1% of your total capital on any one trade is the best thing you can do for your stress levels and to bring your risk of ruin to virtually zero. >> Read More
14 August 2014 - 18:52 pm
On one hand, despite initial weakness following Europe’s triple-dip red alert, futures declined only to surge higher after some headline or another out of Russia was again spun to suggest imminent Ukraine de-escalation (something which Russia whose only interest is to keep crude prices high, has absolutely zero interest in), perpetuating a rumor which was set off by a Russian media outlet tweet last week that has sent S&P futures over 50 higher in less than a week on… nothing.
On the other, Putin just said the following, which no matter how one spins it, shows precisely how Russia is inclined vis-a-vis future (un-de-counter) escalations.
PUTIN SAYS RUSSIA SHOULD AIM TO SELL OIL AND GAS FOR ROUBLES GLOBALLY, AS DOLLAR MONOPOLY IN ENERGY TRADE IS DAMAGING ECONOMY
President Vladimir Putin said on Thursday Russia should aim to sell its oil and gas for roubles globally because the dollar monopoly in energy trade was damaging Russia’s economy.
“We should act carefully. At the moment we are trying to agree with some countries to trade in national currencies,” Putin said during a visit to the Crimea region, which Moscow annexed from Ukraine earlier this year.
Countries such as China, India, Iran, Brazil, and virtually every other non-insolvent, that is to say “developed, Western” country.
And now, bring on the Russian “isolation” (which is about to push Europe, not Russia, into a triple-dip recession) and further de-escalation.
07 August 2014 - 16:02 pm
Trading is a very complex undertaking and if you miss one element you will likely eventually fail in this endeavor.
Here are the four different elements we must have working for us for success in trading:
If we don’t do the homework to know what we need to know we will fail due to ignorance. Understanding historical price action, reading books by and about the best traders, seminars, mentor-ships, and systems testing is all part of the homework we must do to get the needed knowledge.
While trading with a small account is a good place to start it is not a good place to stay. Traders must be adequately capitalized for meaningful trading. We must have an affordable broker that does not charge bloated commissions and gives great execution on orders. A trader must have a platform and charting service that is adequate for his trading style. Trading a small account with an expensive broker with poor execution is a path to eventual failure. >> Read More
06 August 2014 - 19:58 pm
It is very interesting to note that the forefathers of technical analysis, unlike many snake oil salesmen of today, while espousing the benefits of technical analysis, went to great lengths to warn future chartists of the many dangers inherent in charting, such as the desire to be right. Schabacker, in his classic Stock Market Profits, published nearly 80 years ago, writes in an eloquent prose few today can match
No trader can ever expect to be correct in every one of his market transactions. No individual, however well he may be grounded, no matter how much experience he has had in practical market operation, can expect to be infallible.
There will always be mistakes, some unwise judgments, some erroneous moves, some losses. The extent to which such losses materialize, to which they are allowed to become serious, will almost invariably determine whether the individual is to be successful in his long range investing activities or whether such accumulated losses are finally to wreck him on the shoals of mental despair and financial tragedy.
>> Read More