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General Trading Articles

added: Mon, 17th April 2006 | 328 views | 0x in favourites
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Trade the break-out, trade the bounce, or wait for a perfect signal

Trading the bounce from a recent price reversal that is hitting major support, will more times than not be more reliable than trading the break-outs to new highs. Contrarian trading the bounce tends to create more trades you are already in as the new break-out occurs at the other end;...

Why Would Anyone Give Workshops if They Can Trade Well?

In a recent article entitled, “Some Will Love You and Some Will Hate You, So What!” I talked about someone on an internet forum asking if he should attend a Van Tharp workshop. People, who had obviously not attended a workshop or were not students of any of my work,...

Top 10 Mistakes Traders Make

Achieving success in futures trading requires avoiding numerous pitfalls as much, or more, than it does seeking out and executing winning trades. In fact, most professional traders will tell you that it's not any specific trading methodologies that make traders successful, but instead it's the overall rules to which those...

Using Contrary Opinion in Trading Markets

I have told my readers that one of the best methods to trade a market is to jump on board when prices "break out" of a congestion or "basing" area on the charts and begin a new trend. I have also stressed to my readers that one of the most...

Attention Traders: Making a Trading Checklist

Some traders are reluctant to put on a position because they are torn between what they perceive as conflicting market factors. Here's a typical quote from such a trader: "The moving averages are positive, the market is trending higher, but the RSI shows the market as being way overbought. What...

Kaufman: Multiple Trading Methods and Market "Noise"

Many traders attempt to find the single-most "robust" trading strategy possible by looking for one set of rules which works for all markets. Such systems don’t take into account the fact that markets can change quickly and dramatically due to a news event, according to Perry Kaufman.

Trading Lingo: Definitions for the Less-Experienced Trader

Trading futures and stocks involves the use of some of the more arcane terms found in any field of endeavor. Those less-experienced traders who are trying to break into an already-difficult business are many times even more frustrated by "phraseology" they do not understand and which seems to make no...

People Think It's All About Prediction -- But It Is NOT!

Your trading style forms a basis for your beliefs about how to enter the market. This is important because you really only trade your beliefs about the market. It's very hard to trade something that's going up if you believe it is overvalued. Similarly, it's very hard to trade something...

Too Many Strategies, But Still Frustrated?

It is not too far when the veteran traders got used to draw the trend lines using pencil and paper. Whereas the market data sent by mail to them and there was no computer and a trading desk. Were they really wrong by not using super analytical charting platforms? Were...

Technical Traders: Veteran Traders Share Their Secrets and Strategies

An elite group of traders and technical analysts gathered in Las Vegas last weekend to educate and enlighten several hundred attendees of the 21st annual TAG (Technical Analysis Group) conference. For two and one-half days, these respected market watchers shared their trading secrets and strategies.

Technical Traders: You should Still Examine Fundamentals

I base the majority of my trading decisions on technical indicators and chart analysis--and also on market psychology. However, I do not ignore important fundamentals that could impact the markets I'm trading. Neither should you. In this feature I'd like to share with you the types of fundamentals in various...

This Trading "Checklist" Will Help you Execute with Confidence

A lot of email has come in from readers asking me how to improve upon "pulling the trigger" to enter a trade. How many traders out there have ever pondered a potential trade for so long that once they actually got ready to execute it, they then got cold feet...

11 Fascinating Market Correlations You'll Want to Use

Experienced futures traders know there are many correlations among futures markets - some of which are valuable guides in helping to determine specific market trends, and some of which are fickle. This educational feature will examine some basic correlations among futures markets, and will likely be most beneficial to the...

One of My Favorite Trading "Set-Ups"

A fellow emailed me recently, asking: "Without giving away any precious secrets, could you tell me a way to improve my entries and exits (on trades)? It seems nobody wants to share their system." Well, first of all, I don't have any trading "secrets." What I do have is many...

My Ten Favorite Trading Books

In this tip I want to briefly describe my ten favorite trading books. I'm not going to give them in any particular order, because I'm not sure I can rank them that concisely. However, these are my ten favorites and I've ranked them alphabetically by author, except that three of...

Newsletter as a Trading System

If you buy a newsletter, you probably get a monthly trading recommendation. And that is usually a recommendation to buy an investment. The newsletter will also have its own stop rules (those that do have stops). As a result, the newsletter will generate a set of profit and loss statements...

What Are The "Big Boys" Up To? How use the Commitment of Traders Report in your Trading

I have discussed in past articles how volume and open interest can be used to help identify and confirm market situations and trading opportunities. I'll take open interest one step further in this column by examining the Commitments of Traders (C.O.T.) report, issued by the Commodity Futures Trading Commission (CFTC)....

Chase Manhatten Technical Analyst Tirone: "You Need Game Plan"

"When it comes to planning, many traders can be compared to the German army during World War II--in that the invasion of Britain was planned but never executed, while the Battle of Britain was executed, but never planned," said John C. Tirone, senior technical analyst for Chase Manhattan Bank in...

The Snow Fight Metaphor and Trading, Part II

The first variable in the snow fight metaphor was the wall of snow. If the wall is gone, you have no protection from the snowballs. Hopefully, all of you figured out that the wall stands for the equity in your account. And generally the bigger your equity, the safer you...

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