Category: Educational
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What’s powerful about support?
When I first started off trading, I had my doubts about whether the concept of support (and resistance) was actually for real. The chartS below are some fine examples that demonstrate the power of the concept. Support means that which resists falling through the floor. It’s just like a floor actually. Floors do break on…
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Finding entry stop-loss points using Guppy.
The Guppy system uses a concept called the Count Back Line (CBL), in order to find a reasonable stop-loss when deciding to enter a trade. A word of caution: the CBL only assists in certain ways below. Selecting a trade under the Guppy system involves SIX tests of which CBL is just one part. Those…
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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…
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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…
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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…
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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…
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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…
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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…
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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…
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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…
