High probability trading focuses on your trade set-up as it is forming, not after it has been completed. The former is based on trust and the latter on pure emotion as the “jump on board” mentality takes hold. The former will make you money and build confidence while the latter will attract all types of debilitative actions.
The question you must ask yourself is: 1) did you miss the trade because it did not meet your trading rule parameters or 2) did you miss the trade due to lack of confidence?
The answer can make a huge difference in your long-term success.
In many of my more technical posts I discuss moving averages and refer to them as TANKS. I feel a more detailed discussion is in order than the one provided in THE CROSSHAIRS TRADER DICTIONARY.
The weekend before Memorial Day will mark the unofficial beginning of summer. The markets have historically been relatively flat going into the “summer doldrums.” However, the DOW has been up ~50% of the time in the weeks that follow the holiday while the S&P and NASDAQ have been up ~60% of the time. Let’s [...]
“THERE ARE ROADS WHICH MUST NOT BE FOLLOWED, ARMIES WHICH MUST NOT BE ATTACKED, TOWNS WHICH MUST NOT BE BESIEGED, POSITIONS WHICH MUST NOT BE CONTESTED, COMMANDS OF THE SOVEREIGN WHICH MUST NOT BE OBEYED.” SUN TZU ART OF WAR VIII.3 Why does SUN TZU go into such detail here about what NOT TO [...]
According to Thomas Bulkowski, a popular and highly probable stock chart pattern used by many traders, has lost much of its profit potential. In the most recent issue of TECHNICAL ANALYSIS OF STOCKS & COMMODITIES (MAY 2009) on newsstands now, Bulkowski discusses the BREAK OUT PATTERN and comes to some very [...]
SUN TZU: Hold out baits to entice the enemy. Here is an interesting indicator that has developed among the stocks I watch and most likely is occurring elsewhere: Moving Average Baiting (MAB). As many stocks over the last several weeks moved up with the general market trend, most have made this move from a [...]
How about this for a trading term? BEER MATH. Ever heard of that one? You probably have if you are a military enthusiast or a sniper. If you haven’t figured it out yet my writings focus on trading as a battle, so I find myself reading quite a bit of military literature and right now [...]
Browsing in the sports section of the local Barnes & Noble last night I came across a small paperback book with the subtitle The Modern Fundamentals of Golf. Nothing out of the ordinary just the fact that the book was written by Ben Hogan in 1957! Still in print after 50 years and over 10 [...]
