A quick edit of a live video. Thanks Pyro for the edit!
This is technically a lesson from the room, but I’m going to type it out rather than just post a screenshot like I do for most of them.
Even if you haven’t been trading for a while, I’m pretty sure you’ve seen “Heat Maps”. Many people look at them like they look at some geological survey of an ancient civilization…a map of what is/what once was.
I treat them differently. If I’m looking for day-trade ideas, I use them as real living and breathing maps; even GPS if you will…
With roads and guides; pathways to the next step.
Here’s how.[Read more…]
I just finished a little phone call with a member of my trading room.
He had two phenomenal mornings these past two days. Locked-in gains, then ended up net negative each day.
We spoke actual numbers. For the sakes of this post, let us just use a hypothetical amount of $5,000 and I’ll ratio-adjust it.
So you’ve got a $5,000 TRADING account, and you go into the market into the morning and have the luck of making $2k.
That means your account grew 40% in A DAY! Most people trying to ‘beat the indices’ are looking for on average over 20% A YEAR.
While it is impossible to have such gains every single day (as your portfolio gets larger you face special issues….and beyond those, nobody is right about every trade they take).
So After Those Kind of Numbers
, He’s Back to Where He Was Last Week
I just essentially wrote an article answering a question. So I don’t think it’s full-blow cheating. My points were relevant.
A fairly new member of my trading room (shout-out ben), made this statement.
“This trade war is becoming more and more concerning.”
I couldn’t help but respond to it. Then when I got started, I just kept going. I’m going to just copy and paste it from the room to here so you guys can see that I get hyped about completing the alphabet as I was going. I am also doing it this
It is likely for us both that it’s easier to read it this way than for me to get wordy about it.
So here’s my thoughts on the Trade War and the Markets…A-Z. With sub-sections.
Here’s where you think I’ve gone crazy.
This post is half in jest…but it’s also serious.
Allow me to explain the Buffalo Bills Indicator….
So I came across this pattern on several charts a few months ago over in my trading room one late night, and I posted it…in jest. But I keep seeing it so I figured I’d write a quick post on it.
I’ve noticed that any Chaikin Oscillator that is shaped like the back of the Buffalo Bills’ logo end up with a stock popping.
It works on several timeframes. Don’t believe me?
And my point?
My point is this.
It isn’t to add the buffalo bills logo to your charting tool-kit.
The point is that there’s all sorts of indicators, and what works for you works for you. Personally, I see people post charts with 10 indicators and I mentally implode. There’s patterns everywhere that work until they don’t.
There is no indicator with 100% accuracy. Most people use the same study settings that everyone else does…which gives the algos a hell of an advantage.
So don’t go chasing after the king indicator; there isn’t one. Even Renaissance Technologies sees drawdown. And their returns are disgusting.
Renaissance’s flagship Medallion fund, which is run mostly for fund employees “is famed for one of the best records in investing history, returning more than 35 percent annualized over a 20-year span” From 1994 through mid-2014 it averaged a 71.8% annual return. (Source).https://www.wikiwand.com/en/Renaissance_Technologies
There’s nothing wrong with indicators, but be
News broke yesterday that Taiwan Semiconductor ($TSM) had a slowdown in production due to a virus.
Analyzing Financial News – Quick Lesson
Bloomberg had a nice doom and gloom headlined article, entitled “Computer Virus Cripples iPhone Chipmaker TSMC Plants“.
However, if you read the article, the first subheader reads…
“Some factories back to normal, rest in another day, TSMC says.”
Those two statements sound pretty different. The next subheader says that $TSM says that the virus wasn’t caused by a hacker.
Neither statement might be true. But…
And God said, Let there be light: and there was light.
And God saw the light, that it was good: and God divided the light from the darkness.”
- Genesis 1:3-4 KJV
Not to worry this isn’t a bible thumping lesson.