Category: Educational

 

Trading with Guppy

When you say ‘Guppy’, most people think of the fish. So, I’ve put up an image of the fish – but this has more to do with ‘fishing’ than with fish. Very strange indeed. I have to admit I saw his system many months ago and at that time when I saw ‘Guppy trading’, I simply thought it was some nonsense about some fish and ignored it. Oh well – that’s bad. I should haveRead More

The GAP strategy – £1800/hr!

The gap strategy is about profiting from panic in the markets. It takes some careful study. It can work on any instrument representing major indices (eg GER30, US30) At the outset I should say that this is one strategy that should be practised carefully on demo accounts repeatedly to see what happens. For sure you will lose many times – and keep in mind that losing is about 60% of this business – that’s theRead More

Finding your bottom

This is not about your anatomy! Finding the bottom of an instrument (in the market) is not as easy as most might expect. The bottom is not a clearly defined point either. It’s often a band or range of price – as price varies around the so-called bottom. There may be no one bottom. A bottom today is not the same as one two months from now. So, in effect one is looking for aRead More

Honing my strategies [ER strategy updated]

It’s taking some time but I’m observing what I do and what I ought to do be doing more. Strategies are things in evolution. I’m still preoccupied with Earnings Releases (ER) because it is one time when share price can jump even when Wall Street or the DAX (GER30) are generally down. As mentioned in earlier posts, there is an effect of the stock indices on consumer confidence in buying shares (and I remind allRead More

The ‘fishing net’ idea

I’ve referred to this in passing, so I thought I’d define it more clearly. The ‘fishing net’ is a term used analogously to a real fishing net. When a fisherman goes out to sea his net may be of a certain type. He doesn’t expect to catch every fish. Different mesh sizes means that he’ll catch fish only over a certain size. In trading terms I’m setting up my strategies to do similar. Like theRead More

What’s a good stop-loss?

It’s a question that’s impossible to answer as it depends on several things – and each trade is different, as many things affect a particular instrument you’re trading. [An instrument is a stock (aka equity), commodity, forex, or whatever]. The really big and most important point of a stop-loss is to limit losses and limit risk. Being stopped-out and price fluctuaton: One of the biggest mistakes new traders make – and I still get thisRead More

Updated strategy for earnings releases

This strategy updates that of February 2015. The important change is about assessing whether an equity responds to the DAX (GER30) or Wall Street (US30). This became important from lessons learned with Mallinkrodt in Respect the Indices. The SYP principle applies as always. Another change is looking at the Williams Vix Fix – this is an indictor available to Tradingview chart users. It gives a fairly good alert about when price is about to moveRead More

Tools – not fools!

The tools referred to here are ‘physical’ things – as against ‘psychological’. This is about some of the stuff that could be of use in learning or live trading. The quality of your tools matters much to the quality of your learning. And of course it goes without much saying that if you don’t invest time in using the tools they will do nothing for you. There are some new traders who will go, ‘IRead More

Rethinking indicators

Many an expert trader will say something like ‘I rely mostly on price action, not indicators. Most indicators are useless and confusing.’ – which automatically brings up the question, “Which indicators are useful?”. But there are deeper issues. What is ‘price action’? Investopedia says, “Quite literally, price action is everything that a security’s price does, and just like every other facet of analysis, it is purely subjective.” Expert traders may well disagree by saying thatRead More

Somebody to teach me

Can anybody teach you how to have a first major sexual experience? Chrysst! Do you go to mum or dad and say ‘teach me’? Does reading a book or video on it actually teach you much? I’m afraid this graphic example is only to suggest that you can read all about it – but doing it is another matter entirely. Beside knowledge about the ‘mechanics’ of it, you still gotta learn from experience how toRead More