Do you have trading dreams? You should have, and they should be big ones. Helen is reading Open, Andre Agassi's autobiography. In it, Agassi talks about the importance of dreams. Shaken after a poor performance at the French open, Andre's trainer, Gil, tells him a few words his mother always says: "'Que lindo es sonar despierto.' How lovely it is to dream while you are … [Read more...]
Watch for Volatility Expansion
On Friday, volatility contracted and the market traded inside the range of the previous bar. Contraction in trading activity like this often leads to a jump in trading activity in the following day or two. Often, we can see a strong, one-sided day. The market is also sitting on top of the 1208.50 support level from November 1st. We can expect to see it move away from this … [Read more...]
Negative Day
The market continued yesterday's slide and fell to just below the 1208.50 low put in on the first of the month. Volume increased to the downside. I mentioned earlier (in this post) that volatility had contracted and the market had entered an apex. Today, volatility began to expand again - at least during the morning session - and the market began to push outside of the apex, … [Read more...]
Recent Mindfulness Research Shows Big Benefits for Traders
Of all the mental skills a trader can learn, mindfulness is perhaps the most important trading psychology skill. Recent scientific research from researchers at Massachusetts General Hospital shows mindfulness practice can actually alter brain structure. Researchers studied the brain’s gray matter to see whether or not it changed after practicing mindfulness. Those who … [Read more...]
Wyckoff Apex Forming?
A few days ago I mentioned that the market volatility was regressing and that an apex or triangle could form, though at the time it was a bit early to tell. You can see that comment in this post here. In any event, the daily chart is highlighting market contraction. How does one trade in a contracting market? Many wise traders will simply stand aside until the market … [Read more...]