Trading Psychology: A Checklist Approach
and traders are bearish. The reasons vary and include worries about earnings or the economy but many feel that the market is headed for a fall.
Michael Carr
Testing Simple Strategies: MACD Works and Futures are Rewarding
Traders are fascinated by indicators. But just because something is interesting, logical or mystical does not mean it works in the market. Testing is needed to be sure the indicator adds value, and we will define value as improving profits. If an indicator beats a simple trend following strategy, it adds value.
Indicators on Indicators: The Next Step in Analysis
Traders and analysts have been developing market indicators for decades. Many of these indicators are simply measuring the same idea in only a slightly different way since most indicators are based on the same limited amount of market information.
A Trader’s New Year’s Resolution for 2012: Become More Like a Psychopath
New Year’s resolutions are often made and broken within the first days of January. The most popular resolutions, things like losing weight or quitting smoking, require will power and action.
Seasonality: Do Stocks Really Go Up In January?
Many Wall Street pundits have been talking about the Santa Claus rally and the January Effect. In both cases, stocks are expected to go higher based upon a seasonal pattern.
Spotting Stock Market Winners
The stock market, big winners unfold over years and could be a valuable core holding in a trading account.
Are Stocks and Bonds Really Different?
In the long-term, investors in stocks and bonds have different goals but the performance of the two investments has been about the same over the past thirty years.
Do Stops Work?
One of the first lessons that new traders are taught is that one of the keys to success is to cut losses and let winners run. This almost always leads traders to believe stop loss orders should be used to cut losses and are a valuable part of any trading strategy. Individual traders also seem to place stops under the market and forget about them, knowing their losses are limited.
My Best Idea for Small Investors
Stocks are a wonderful investment but they will not be the right choice for small investors looking at trading for a living. A widely cited figure is that stocks return about 10 percent a year in the long run.