Overview: Trading the S&Ps After the Holiday Trading the S&Ps after the holiday can present its own challenges and this year is no different. The charts this week show an interesting pattern. Although we are in a bullish holiday period, the monthly and weekly are both a bit overbought. We can expect a pullback on these time frames at some point. The daily is starting to … [Read more...]
Trade Mindfully: The Critical Skill of Mindfulness in Trading:
Trade Mindfully My book, Trade Mindfully, is the first book to detail the benefits and application of mindfulness in trading. It's at the printers now and is due on the bookshelves December 3rd. You can pre-order for quick delivery, and the Kindle version is now available, if you prefer the electronic format. Here is a link to the book in both formats at amazon.com: <br … [Read more...]
Trading Psychology: Cutting Winning Trades Short: How to Overcome It
Our trading psychology is often confronted with the strong urge to book small profits on a winning trade. If we listen carefully, we often hear our mind telling us: I must get out now. I'll have a small profit. It's better than a loss ... How often have you said this or something similar before cutting a good trade short? Cutting winning trades short is one of the most … [Read more...]
When Your Analysis is Wrong – A Lesson in Trading Psychology
Last night, I was looking for the market to react and begin to head lower today (see last post below). That analysis turned out to be wrong. How do you salvage a trading day when your analysis turns our to be flawed? In truth, there are many days that my nightly analysis turns out to be wrong, or, more correctly, the market doesn't do what I anticipated the night before. It … [Read more...]
Follow-Up in the S&Ps
Yesterday, resistance was identified in the area of 1965 - 1970. Today, the market stopped it's upward movement at 1968.25. Today--marked A on the chart--was an up day. Although it was up, it also traded inside the range of the previous day. We had good volume, but the market remained largely range-bound. We could be seeing the market accumulating around support as we have … [Read more...]
