Archive for July, 2009
Stop Loss Placement, Part 2
As we dive deeper into this series on stop loss placement, I want to be sure you caught Part 1 because it helps lay the groundwork for this ongoing discussion.
Stop Loss Placement, Part 1
It is the most common question I’m asked: “How do you determine where to place a stop loss order?” And it’s a great question. Newer traders need to know it. Experienced traders will often study it and refine it. It’s arguably as important as any other aspect of a trade. So here I am setting [...]
Psychology of Overbought, Oversold, and Market Extremes
Ever seen something get just a little overdone? Perhaps it was that weekend barbecue, or the tattoo collection on that dude you saw the other day. No doubt, we all run across the occasional extremes, and they’re usually worth a story or two.
Protect Capital Even in a Bull Market
This market sure has been strong – we have yet to see a pullback which has lasted longer than a few minutes! Instead, we’ve merely seen brief pauses of sideways price action, which is quite nice…if you’re long.
Video Review of the Indexes 7-26-2009
Moving out of a multi-month trading range has been a very welcomed sight for many traders in the past week. It has meant an expansion in volatility, greater momentum than we’ve seen in a while, and new recovery highs for the market from the March low.
Rip City – When Will We Rest?
Shorts are getting torched right now. The extreme momentum we’re seeing is definitely of the emotional variety, although it’s been technically significant as well.
Fill Your Trading Toolbelt
Recently I saw the movie Gran Torino, and really enjoyed it. In case you haven’t seen it, I won’t give away the plot. But at one point of the movie, Clint Eastwood is with a young man in the garage and the kid is amazed by the amount of tools Eastwood has collected.
