This is what holds many traders back.The small wins.Yet we love to take those small wins, and avoid small meaningless losses like the plague.We are afraid of losses. It doesn't matter it it is big or small, that L is scary.It's all about the fear of the loss.Here is the rub: the fear of the... Continue Reading →
Prepare for the worst and the worst Martin Shkeli joke you ever heard
Martin: I have a horrible migraine. Prison guard: A bottle of Advil is $750,000It's easy to lose sight of the dangers of trading when things are going well. A few good trades and you are invincible.But it only takes one bad trade to wipe all the profit away.Anybody remember KBIO?A novice trader shorted the $2... Continue Reading →
Trading secret for those unwilling to understand that they can not predict the future
Traders know less about the future than they think they do. And if the trader knows she does not know, she thinks someone else does.It's why you hang onto every word of woefully inaccurate CNBC pundits. It's why you love and hate Cramer. It's why you follow 3654 members of the Twitterati.Sadly, it's why you... Continue Reading →
Chart of the Day: How to Trade VIX
At the first sign of a market sell off or correction, my eyes leave my well developed focus list and turn to the CBOE Volatility Index, otherwise known as VIX. During market selloffs, it is crucial that you learn how to trade VIX.Why do I love trading the VIX during sharp selloffs and corrections? Please... Continue Reading →
Example of a Winning Trade and Smart Risk Management: SHAK
We have been talking a lot about risk management and how it relates to being a successful trader. In fact, three of the first five trading quotes in the 100 trading quotes series related to risk management. This should clue you in on how important I believe risk management is to winning as a trader.My... Continue Reading →
100 Trading Quotes To Put Into Action And Change Your Life: Caution Is A Risk
The first quote in the "100 trading quotes to put into action and change your life series" speaks to a specific trader type. When thinking about risk, we often think of the trader who is impulsive, trigger happy and position sizes much too aggressively. However, there is another type of risk of which former Indian... Continue Reading →
APOL Offers a Low Risk Setup
APOL has a weird, volatile pattern, but still offers a low risk setup off a breakout-pullback. An entry here at $71, with a stop under the moving average at $69.60 and a target at $74, offers a 2:1 reward to risk ratio.CPLA, another education stock, has a similar setup.
Is DE (John Deere) a Short Setup?
A Trade Report member sent me an email about DE. Here is the e-mail and my response I think it is great time to short "DE"? RSI, OBV and MACD are all bearish...plus, the Durable good is bad..While the price pattern is not bearish, I agree in that RSI is showing a slight negative divergence... Continue Reading →
Is This Breakout Sustainable?
The market and leading stocks are breaking out after a short consolidation period and overbought readings that are still extreme. Due to the extreme overbought readings, I'm taking a few "speculative" shorts. However, they are done with caution and small positions size.The idea behind these trades is to expect a small loss. If the trade... Continue Reading →
Too Extended to Enter Longs
While them market is too extended for my to add to my long positions (report members know that I was long before the move using the oversold bounce strategy), there are some low risk short setups among inverse ETFs.