Every trader/investor must guard himself against drawdowns, which refer to the percentage drop in his account size after one losing trade or consecutive losing trades. For example, imagine that after losing a few trades in a row, your $20,000 account is reduced to $12,000; that would be a drawdown of 8,000/20,000 = 40%. If I [...] Read more »
Definition of perfect Stops and What your financial advisor is hiding from you.
Most traders have had the painful experience of setting their risk stops only to have the price retrace to their stop and take them out before continuing in the trend. Although some traders swear that other traders are "running the stops," actually what happened is the trader placed the stop too tight. Note: At times [...] Read more »
Five Characteristics of Successful Traders
As a former money manager I associated with a lot of other money managers. Some of them were successful, some of them were not and none of them ever taught their systems. They all said I was crazy when I said I was going to teach my system. But knowing what I know about volume [...] Read more »
Screwflation
Finally – we’ve got a word for what most of us in the so-called middle-class have been feeling the last few years – Screwflation. As far as I can tell, Doug Kass at TheStreet.com invented it back in Oct of 2010. He defined this way: “Screwflation, like its first cousin stagflation, is an expression of [...] Read more »
Don’t Fumble this Valentine’s Day!
Don't Fumble this Valentine's Day! If you’ve been reading my emails and articles for long you know I place a high value on family. I really enjoy the freedom trading for my own accounts and mentoring other traders gives me to spend more time with my family. I’d go so far as to say that [...] Read more »
Oils ETFs Offer Efficient, Inexpensive Way To Invest
Oils ETFs Offer Efficient, Inexpensive Way To Invest There was a time when investing directly in oil commodities was limited to oil companies and financial institutions. The growth of exchange traded funds in the United States had evened the playing field in a lot of ways, and that includes investments made in assorted crude oil [...] Read more »
Roy Rogers and trading
So, while I was hanging out with friends and family the other day, we started talking about when we were kids and the celebrities and TV shows that we followed and turns out I’m not the only one that counts Roy Rogers as a big influence. For those of you outside the US, you’ll have [...] Read more »
What will the tax cut extension do to the markets and how can it affect you?
As you know this is not a political newsletter (although I do have an opinion), but an investing/trading newsletter. Several students have asked me if I thought the tax cut extensions (if it does go through, even with the compromise) would prop the market up. My answer is 99% yes. I learned a long time [...] Read more »
Forex Broker Scam
I warned members last week on my live webinar that most forex brokers hunt traders stops. Well a few days after saying that the NFA (National Futures Association) validates what I’ve been saying for years by handing out large fines to two big Forex brokers for that exact reason. Click below to see the NFA’s [...] Read more »
What about handouts?
When I created my ETF Trend Trading system, I expected to meet people who had a few dollars put away in their IRAs and 401k’s who were old enough and smart enough to realize there was another way to grow their net worth besides saving and passive investing. I expected I’d meet some who had [...] Read more »
