Price is the Ultimate Source, WSJ is entertainment

Front page of the Wall Street Journal's October 26 edition

Before boarding a recent flight to Amsterdam, I grabbed the October 24-26 weekend edition of The Wall Street Journal (WSJ). Reading the news is quite out of the ordinary for me, a full time trader who relies almost exclusively on price action. The only reason I got my hands on the paper was solely to Price is the Ultimate Source, WSJ is entertainment

What Seperates Great Traders from the Pack?

a giant ferris wheel in the evening light the methaphor of the trader's wheel

Every trader might have a different answer based on their personality and process, but we do see many common traits. Many might think that it’s an ability to analyze a chart, and while that skill is important, it might only be 10-20% of the answer. Today, we will share our evaluation checklist that defines the areas where successful traders get the edge day-by-day, setup-after-setup.

Shooting For the Peak? Use Our “Terminal Set Up”

A spiraling tape form a channel

Now that the S&P 500 has reached the 2000 level, investors and traders are becoming more comfortable with the idea that prices will simply continue higher, for years. On the bear side we hear the argument about the extreme levels of optimism which should reverse the market big time. Who is right? For sure, a trader pays attention to something else.

Stock Market Risk – The New Reality Part 2

Chart: Japan Government Debt in percentage of the GDP

In Part 1 of Stock Market Risk – The New Reality, we covered the difficulty of investing in today’s environment, and the folly of forecasting. Rather than focusing particularly on forecasting, learn and create a process for identifying “stand alone” opportunities the Trader Skillset way. And, with that, enjoy Part 2: Here are two forecasts Stock Market Risk – The New Reality Part 2

Stock Market Risk – The New Reality Part 1

Effective Federal Funds Rate chart 1954 - 2014

Investors are expecting far too much return from their investments, and far too little downside potential, as of today. These expectations rest on two faulty ideas: Expecting the next five years to mirror the past five. Belief in the power of the Federal Reserve, and central banks everywhere, to ensure economic growth. But, the Fed’s Stock Market Risk – The New Reality Part 1