Posts filed under “Trading”
10 Bad Habits of Unprofitable Traders
1. They trade too much.
2. Unprofitable traders tend to be trend fighters, always wanting to try to call tops and bottoms.
3. Taking small profits quickly and letting losing trades run in the hopes of a bounce back, is a sure path to failure.
4. Wanting to be right more than wanting to make money will be a very expensive lesson.
5. The biggest key to profitability is to avoid big losses. (sizing / risk vs reward)
6. Unprofitable traders watch CNBC for trading ideas.
7. Unprofitable traders want stock picks, while profitable traders want to develop trading plans and systems.
8. Unprofitable traders think trading is about being right.
9. Unprofitable traders don’t do their homework because they think there is a quick and easy route to trading success.
10. Unprofitable traders #1 question is how much they can make if they are right, while the profitable traders #1 concern is how much they can lose if wrong.
Good list for newbie traders . . .
The crash in 1929 followed a 6 year bull market that saw the Dow gain some 350% in just 6 years. The 89% crash wiped out just about all of it.
On October 29, 1929, Black Tuesday hit Wall Street as investors traded some 16 million shares on the New York Stock Exchange in a single day. Billions of dollars were lost, wiping out thousands of investors. In the aftermath of Black Tuesday, America and the rest of the industrialized world spiraled downward into the Great Depression (1929-39), the deepest and longest-lasting economic downturn in the history of the Western industrialized world up to that time.
Black Thursday brings the roaring twenties to a screaming halt, ushering in a world-wide an economic depression.
The change in tone in the equity markets is unmistakable: There is a palpable tension that leads some money managers to shoot first and ask questions later. The net result of that anxiety can be seen in the flood of new money into U.S Treasuries, which ever so briefly drove the yield on the 10…Read More
Here we are, 10-plus months into the year, and we have nothing to show for it. At least, that is the case if we measure our progress by the gains (or losses) of the Dow Jones Industrial Average. The index is now unchanged for the year after last week’s losses. The previously one direction market…Read More
Yesterday’s sell off has the bulls worried. Major U.S. indexes fell about 1.5 percent. Ten of the past 12 trading sessions saw swings of 100 points or more in the Dow Jones Industrial Average. The list of worries ranges from the strengthening dollar’s harm to U.S. earnings, the end of quantitative easing, Europe’s weakening economy…Read More
Gold is one of those topics that always generates fierce pushback whenever I write about it. Yesterday’s column How Low Can Gold Go? was no different. A deluge of emails and over 150 comments soon followed. I may post some of the more informative, vociferous and misguided comments / emails from readers later today as…Read More
Volatility David R. Kotok October 5, 2014 An era is ending: for over half a decade, nearly worldwide, zero interest rates suppressed volatilities. That is over. The first sign of this evolution came over a year ago when the bond market experienced the “taper tantrum” as then Fed Chairman Ben Bernanke alluded to…Read More
> My Sunday Washington Post Business Section column is out. This morning, we look at The world’s greatest stock picker? Bet you sold Apple and Google a long time ago. (Thats the print headline; online it was Why the world’s greatest stock picker would’ve ditched Apple). This is the third (and likely final) installment of…Read More
This week’s Masters in Business Radio show at 10:00 am and 6:00 pm on Bloomberg Radio 1130AM and Siriux XM 119 (it also repeats all weekend).
Our guest this week is Jack Schwager, best known as the author of the seminal and popular Market Wizards books, first published in 1988.
All of the past Podcasts are here (and coming soon to Apple iTunes).
Next week, we speak with Larry Swedroe, Buckingham Asset Management’s Director of Research.
Books by Jack Schwager:
• Market Sense and Nonsense: How the Markets Really Work
• Getting Started in Technical Analysis
• A Complete Guide to the Futures Markets: Fundamental Analysis, Technical Analysis, Trading, Spreads, and Options
Streaming audio after the jump