Speculators are scumbags

The role of financial speculators, especially when it comes to agricultural commodities, has often been villainized by political activists and special interests groups.  The criticism has been particularly strong in my lifetime during periods of rising (food) commodities prices, such as the decade between 2005 and 2015.  Check out this article and the study it refers … Continue reading Speculators are scumbags

Do nothing. No, do less.

It's not as funny as the scene from Forgetting Sarah Marshal (a movie I don't recommend), but the line should be learned by every trader.  Once a decision has been made to enter a trade, the exit plan should already be well in place.    Between the entry and the exit, do nothing... No, do … Continue reading Do nothing. No, do less.

Never, ever chase a break

Another lesson in temperament and self-control is the ability to not chase a rally (or breakdown) if the trade no longer stays within your risk parameters (i.e., too wide a stop to stay in the trade). It's painful to watch a rally get away. Yet, remember that you don't lose money while you wait for … Continue reading Never, ever chase a break

Trading = Baseball (…only if you swing)

Many life activities get boiled down to a baseball analogy: three strikes and you are out. Trading in general is great place for sport analogy and baseball, from the obsession with statistics, to the choice between swinging for first base or the fences, is a perfect partner. After you apply all the potential comparisons, you … Continue reading Trading = Baseball (…only if you swing)

“Be true to yourself” is b.s.

One of the biggest lies we have told ourselves in the 20th and 21st century West is that we are born naturally good and we need to learn to accept ourselves for who we are and do no matter what.   Tolerance of ourselves, even before that of others, is effectively a law in Western … Continue reading “Be true to yourself” is b.s.

Why wait for support and resistance? 

Because they offer the best risk/reward opportunities.  Especially with breakouts, once prices have left the previous level of support and resistance, they will travel until they find a new area of consolidation.  That "trip" is the trade you want to wait for.  That trip is often the beginning of a trend.  And discretionary trend traders … Continue reading Why wait for support and resistance? 

There are only 4 trades worth taking

Prices tend to congregate around areas of resistance and support.  It doesn't matter what one buys or sells.  Support and resistance apply to anything that has a pricing history, cars, houses, professional contracts, oranges, gold or wedding receptions.  Everything. Around support and resistance, while trading commodities, I've learned that there are also consistent market (i.e., … Continue reading There are only 4 trades worth taking