Banking crisis

Governmental authorities in the USA have declared a 10 day ban on shorting specified financial stocks while governmental authorities in Russia “temporarily” shut down their two main exchanges to prevent trading in anything!

Meanwhile, the Prime Minister of Canada made a public statement declaring that there was no need for the Canadian government to bail out Canadian banks and that “the troubles in the financial sector of the United States should not spill over into Canada. “ There you have it. Conclusive evidence that Canada now has an official banking crisis!

I am taking a two week holiday from blogging to get some rest from this financial crisis. I plan to return by October 6, 2008.

...back by October 6, 2008...

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Trading what you see, 4

...cont'd discussion about Trade What You See: How To Profit from Pattern Recognition (Wiley Trading)

The chapter on “Building a Trading Plan” is very succinct. The authors advise that you should plan out three general areas of concern:

What and how you are going to trade as well as what you will measure in terms of your trading performance.

Your policy on spending money on education, equipment, and other expenses.

Ideas about what to do in the event of disasters or to prevent disasters such as power outages, equipment failure, etc.

...cont'd tomorrow...

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Trading what you see, 3

cont'd discussion about Trade What You See: How To Profit from Pattern Recognition (Wiley Trading)

The chapter on Trade Management is excellent. The authors say that the first step in refining trading as a skill is to learn a method of trading that suits one’s personality. The authors stress the need to regard trading as a series of events in which there will be winners and losers, but that the order in which the winners and losers occur is unknown and the amount of profit in the winning trades cannot be known in advance. What you can know in advance is how much you are willing to lose if the next trade is a loser.

The authors suggest:

Risking only a very small (less than 3%) of your capital on each trade.
Always using a stop loss.
When profits manitfest, taking at least partial profits using a limit exit order/

...cont'd tomorrow...

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Trading what you see, 2

cont'd discussion aboutTrade What You See: How To Profit from Pattern Recognition (Wiley Trading)

Usually, the odds are in favor of a trading day being a range bound day in which prices vacillate between two price points. But sometimes the trading day is a trending day in which prices go unidirectional with short countermoves throughout the day. Therefore, knowing when the odds favor the day being range bound or trending is relevant to decisions such as whether to take profits quickly (during range bound days) or to use a trailing stop to see how far price will go in the same direction.

The authors of the subject book say that if you see one of these three conditions, then you should trade on the assumption that you will likely have a trending day.

1. If yesterday was a narrow range day, such as the narrowest price range of the last 7 days, then today is likely to be a trending day.

2. If yesterday is a day in which the open is about the same price as the close, then today is likely to be a trending day.

3. If today opened with a gap followed by wide range bars in the first 15 to 30 minutes of trading, then the rest of the day is likely to be a trending day.

The authors say that during a trending day, prices move unidirectionally, interrupted by moves in the opposite direction by amounts equal to not more than 0.50 of the movement in the direction of the trend (and that usually such countertrend moves are only 0.382 of the preceding movement in the direction of the trend).

...cont'd tomorrow...

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Trading what you see, 1

Here’s a book that starts out seemingly too complex to be useful but on further examination is found to be full of valuable gems. Trade What You See: How To Profit from Pattern Recognition (Wiley Trading)

The authors trade geometric patterns. The patterns discussed include the AB=CD, the Garley 222, the Butterfly, the Three Drives, Retracements, Double Bottoms/Tops, Head and Shoulder, and Broadening Tops/Bottoms. Even if you don’t like those patterns, you’ll benefit from the authors’ discussion about how they manage the trade including where to put stop loss orders, when to raise your stop to breakeven for a risk free trade, and where to take profits.

...cont'd tomorrow...

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Leisurely trading, 5

Cont’d discussion about Day Trade Part-Time

One of the most valuable features of the book was the many websites mentioned in it that might enhance your trading. However, many of those websites no longer exit. That being so, I cannot recommend purchasing the book. However, I do recommend a quick read of the book if you can get it for free at your local public library or if you can get a good used copy at a deep discount.

...back next week...

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Leisurely trading, 4

Cont’d discussion about Day Trade Part-Time

Pristine.com, an educational site. They have courses that show you what to do. Then after that, you can sign up for more courses where they’ll watch you try to do what they showed you to do. I haven’t taken their live courses but I have tried their dvd's and found them very helpful.

Undergroundtrader.com. This is another educational site. The authors of the book “Day Trade Part-Time” liked it and use the style of trading taught at that website. I tried it and found it too confusing. But that’s because I prefer leisurely styles of trading. You might like it.

...cont'd tomorrow...

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Leisurely trading, 3

Cont’d discussion about Day Trade Part-Time

Many of the websites recommended in the book have moved to parts unknown or have disappeared. That’s good because the ones remaining are the ones you’ll want to seriously check out. The survivors include:

...cont'd tomorrow...

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Leisurely trading, 2

Cont’d discussion about Day Trade Part-Time

You can pick a time of day that best fits whatever strategy you prefer to use. Or in reverse, first pick a time of day that suits your lifestyle and then use a strategy that works best in that time slot. Here’s my understanding of what the authors of that book recommend for various time slots during the day.

9:30 am ET until 10 am. Best for short-term momentum trading startegies, especially strategies involving gap openings.

9:40 am ET to 10:20 am. Best for trading strategies based on relative strength and for trend reversal strategies.

10:20 am ET to 11 am. Best for strategies involving taking profits on very small moves.

10:45 am ET to 12 noon. Best for morning consolidation breakouts and trend reversal strategies.

12 noon ET to 1pm. Lunch.

1:00 pm ET to 3 pm. Best for consolidation breakouts.

2:00 pm ET to 4 pm. Momentum strategies.

3:30 pm ET to 4 pm. Best for riding momentum caused by swing traders opening or closing positions.

...cont'd tomorrow...

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Leisurely trading, 1

Have you been to seminars by motivational-type of trader-educators who say that before you can succeed at trading you must getting committed? If you got committed but still didn’t get profits from trading, then maybe doing the opposite would work. Try uncommitting to trading and just go at a leisurely pace.

You can even day trade part-time as suggested by the authors of Day Trade Part-Time

...cont'd tomorrow...

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Psychic Trading, 4

continued from yesterday...

I have been following the predictions of a group of Remote Viewers (i.e. “psychic”) as to the price of oil and gold. Their predictions were published as of March 13, 2008 at ProbableFuture.com. Check out their discussion about oil and gold at the page entitled “Finaical Zen, Light Gold or Black Gold”.

http://probablefuture.com/cmd.php?af=772886

...back next week...

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Psychic Trading, 3

continued from yesterday...

Russell Targ has a few theories as to why the 1983 attempt failed while their 1982 attempt was remarkably successful:

a) The incresased frequency of trading confused and rushed their procedure/protocol, especially the requirment of giving feedback to the viewer/psychic.

b) They had lost their spiritual focus which they felt was at least partially for science.

c) They were out ot break the bank.

d) Serious greed had entered into their activitiy.

You can read about Russell's adventures in the silver market in his book Limitless Mind: A Guide to Remote Viewing and Transformation of Consciousness

Russell Targ is a physicist was a pioneer in the development of the laser and who did extensive research on psychic phenomena. He is cofounder of the Stanford Research Institute's investigation into psychic abilities in the 1970s and 1980s. His website is at Russell Targ is a physicist was a pioneer in the development of the laser and who did extensive research on psychic phenomena. He is cofounder of the Stanford Research Institute's investigation into psychic abilities in the 1970s and 1980s. His website is at http://www.espresearch.com/

...cont'd tomorrow...

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Psychic Trading, 2

continued from yesterday...

In 1982, Russell Targ and his partners used psychic powers to create profits from trading. Russell was part of a group of psychics who partnered with investors to trade silver with a one-week holding period on each trade. The partnership was named Delphi Associates. They traded for nine consecutive weeks and then stopped. Each and every one of their nine consecutive trades were profitable.

In 1983, the investors and Russell Targ’s psychics regrouped to trade silver again. One difference was that they attempted to make two trades each week instead of one. The 1983 attempt at using psychic powers to trade silver failed.

...cont'd tomorrow...

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Psychic Trading, 1

Wouldn’t it be nice if you could use psychic powers to predict the next few minutes, hours, days or weeks of price movement in financial markets that you trade?

If not “nice” then perhaps awesome, magnficent, excellent: divine, fabulous, fantastic, fantastical, marvelous, sensational, splendid, superb, terrific, wonderful, dandy, ripping, super, swell, tremendous, cool, groovy, hot, keen, neat, nifty…

...cont'd tomorrow...

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