Market Analysis

I got an email from a student this week asking about using intuition in trading. He gave an example where using intuition worked in his favor (by keeping him out of trade that signaled then lost), but then wondered if that is really a good idea. One of the reasons I recommend SO much backtesting is because of the intrinsic learning that goes on while one is testing. (Stay with me here…it is relevant, I promise). Intrinsic learning is the deeper level learning that happens without our even

Dan shook his head as he checked again. No matter how many times he looked, he still saw the same numbers and what it boiled down to is that he had lost again. A small voice inside kept telling him that this loss, along with the many others, meant that he had failed, that he must not be smart enough or else he wouldn't lose so much and that the market is out to get him. He felt like a loser and a failure even though deep down a part of him knew that this was not true; but it didn't matter, he

“You can’t change what you can’t face and you can’t face what you don’t know.” --- Dr. Woody Johnson Hello: Whether I win or lose a trade, trading is my profession and it’s what I like to do. Great people have always faced challenges and failures – yet they become great. The past failures and challenges on the markets are never a deterrent to me. Markets wizards today were novices in the past. The road to success is bumpy indeed. Nevertheless, the resplendent reward of consistent success makes

Carla leveled a deep sigh as she looked away from her screen. Actually, it was more like a moan; a moan that belied the pain of having violated another rule that she promised herself she wouldn't. When she looked back around, there it was, still, an option trade that she had exited prematurely against her plan after becoming gripped by fear. It was a bull put credit spread that had gapped down causing her to panic. Of course, as is often the case, the price action retraced and filled the gap

His sleep-filled eyes could barely focus on the chart staring back at him from the computer screen. He felt sluggish, his mind foggy, and his movements slow, but what was quite clear is that he had lost again. Oscar's anger began to rise through the fog as he asked the question, which fell like a dead weight on the silence around him; "...Why do I always lose in the morning? It's like the markets know that I'm coming, and they just wait till I enter, then go the other way." His day had begun