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Gorman & Kennedy, Visual Guide to Elliott Wave Trading-Book Review
First, what Visual Guide to Elliott Wave Trading by Wayne Gorman and Jeffrey Kennedy (Bloomberg/Wiley, 2013) is not. It is not an Elliott wave primer. The authors direct the reader who knows nothing about wave patterns to the classic presentation by Frost and Prechter, available free online.
Instead, this visual guide shows how to actually use Elliott waves in trading, both as a stand-alone tool and, more perfunctorily, in combination with technical indicators. It also includes two chapters on incorporating Elliott waves into options trading strategies
Many of the Elliott waves the author illustrate (and naturally the illustrations are abundant) are of the “real world” vs. the “textbook” variety. That is, they are tricky to decipher even in hindsight. This difficulty has led many critics to claim that Elliott wave theory is useless in real time. In fact, the authors admit that “under the Elliott wave model, there is usually more than one valid wave count at any particular time” and that “sometimes these wave counts point in opposite directions.” (p. 195)
For the trader in doubt (who is not pursuing an option strategy that can profit under more than one scenario), Gorman and Kennedy provide visual cues—usually familiar patterns such as channels and wedges, sometimes Fibonacci levels—that help the trader make sense of the waves. The chapter titles in Part II (“Trading Examples”) point to some of these cues: “How Zigzags and Flats Set Up a Trade for the Next Impulse Wave,” “How a Triangle Positions You for the Next Move,” “Riding Wave C in a Zigzag,” and “Using Ending Diagonals to Trade Swift and Sharp Reversals.” (more…)
Take Care of Your Emotions
- Sometimes I trade entirely off the mechanical part, sometimes I override the signals based on strong feelings, and sometimes I just quit altogether. The immediate trading result of this jumping around is probably breakeven to somewhat negative.
- However, if I didn’t allow myself the freedom to discharge my creative side, it might build up to some kind of blowout. Striking a workable ecology seems to promote trading longevity, which is one key to success.
- Gut feel is important. If ignored, it may come out in subtle ways by coloring your logic. It can be dealt with
through meditation and reflection to determine what’s behind it. - One of the best ways to increase profits is to do goal setting and visualizations in order to align the conscious and subconscious with making profits. I have worked with a number of traders in order to examine their priorities and align their goals. I use a combination of hypnosis, breathing, pacing, visualization, gestalt, massage, and so forth. The traders usually either (1) get much more successful, or (2) realize they didn’t really want to be traders in the first place.
- A fish at one with the water sees nothing between himself and his prey. A trader at one with his feelings feels nothing between himself and executing his method.
4 Reasons why 90% Traders lose Money
1)Those who are almost certain to fail in trading do not have the will ,desire or ability to truly be honest with themselves. 2)Most traders who have been unsuccessful do not have the courage to ask for help. 3)Traders who cannot stay humble eventually go down in flames. 4)Traders who cannot forgive themselves eventaully take massive losses ,while never being able to let a winning trade run. |
Trading Mindset Upgrade Profit Opportunity -Anirudh Sethi
Anybody that has traded for an expanded timeframe comprehends the significance of having the correct attitude with regards to trading beneficially. Truth be told, without the correct attitude, it’s practically difficult to deliver reliable outcomes. In addition, the greatest test I’ve seen for some traders understands what the right mentality involves, and after that making it perpetual so it turns out to be second nature while connecting with the business sectors. Most traders concentrate on creating techniques with a specific end goal to profit. Henceforth, there is no other path around. In any case, your mentality is regularly “the missing connection” with a specific end goal to perform better. To get consistent returns you need to concentrate on the mental part the same amount of as the trading numbers. For the individuals who have not traded much, this may sound somewhat abnormal. What does brain science need to do with hard and cool trading numbers? In the wake of trading for a few years, you’ll find that trading is absolutely not as simple as it appears to be, an incredible inverse. On the off chance that you can’t take after the principles of the procedure, you essentially have no technique.
Target is Most Valuable Consequence of Trading Mindset
Your mindset and convictions will be a noteworthy deciding component in your trading come about. Consider this illustration, where the same fruitful trading approach is utilized by a hundred traders and ordinarily no two of them will trade it the very same way. Why? Since every trader has a one of a kind conviction framework, and their convictions will decide their trading style and their trading comes about. That is the reason even with a gainful and demonstrated trading approach; numerous traders will come up short. They don’t have the best possible conviction framework to empower them to trade well. At the end of the day, they do not have ‘The Trader’s Mindset’. When you experience mental issues it is best to perceive the issues, simply know about them and don’t deny they exist. Keeping in mind the end goal to settle mental issues, we should first wind up plainly mindful of the issues that are making the issues altogether mind. This is a lot of what truly matters to analysis. The therapist or psychotherapist tries to get the patient initially to perceive issues that are causing their issues. The patient must trust that these issues are making the issue altogether for the patient recuperates. The reason this procedure can take so long, maybe even years, is on the grounds that the patient needs to perceive their issues as well as must acknowledge that there genuinely is an issue. They should assume liability for their issues to recuperate. (more…)
The Dynamics of Precept-ion
Hunter S. Thompson on Living versus Existing
Basic Trading Advice
The Wisdom of Bear Stearns’ Ace Greenberg
In his awesome new book The Rise and Fall of Bear Stearns, Ace Greenberg spends the majority of the time setting the record straight from divergences from he thought was the truth. The majority of these divergences came from the mouth of Jimmy “I put it to my mouth and I did inhale” Cayne.
This is a blog about trading so I’ll spare you all the details, but frankly, my take on the whole she-bang as delineated in the book, is that dealing with Cayne was like dealing with a teenager for 30 years. He was a complete pain in the ass, but every now and then he’d make a big play in the game, so his parent (Greenberg) would be proud. Cayne’s ego would be his undoing. He fell on his own saber.
Greenberg gives Cayne credit where it was due and appears genuine. I could not tolerate anyone like Cayne and it’s why I enjoy being a prop trader. If you bust my chops enough, I can tell you to “go forth and procreate with yourself.”
What you’ll get from this book is a great history of Bear Stearns, during which Greenberg spent the majority of the career we know him to have had. Bear was 21 years old when Greenberg started and he spent the next 61 years there. (more…)