How to Get the Most From Your Trading Practice

over 6 years ago by Brett Steenbarger, Ph.D. @ TraderFeed

An excellent post from NewTraderU and written by Colibri Trader explains how 10,000 hours of practice typically goes into the creation of expertise.  As the post makes clear, there is a world of difference between repeated experience and pract...

What you need to consider before trading cryptocurrencies

almost 7 years ago by Michael Martin @ MartinKronicle

It's the system stupid. I have not traded bitcoin futures and I won't be in the near term. There is not enough data and I don't know who has basis risk. It seems like the market is dominated by speculators and not hedgers, and they are heavily biased long.When the market is lop-sided and fickle, it makes for a poor trading environment. That's why I'm invested and not trading at this point. It's too easy to lose money...and that's going to happen even when I'm trading well...

Why We Are Obsessed with Bitcoin

almost 7 years ago by Zack's Market Edge Podcast

How AI Will Invade Every Corner of Wall Street

almost 7 years ago by Bloomberg

Machine learning, with its prowess in producing insights from data, is poised to have a hand in 99 percent of investing, CEO says.

Trading Psychology Challenges - 8: Complacency and Overconfidence

almost 7 years ago by Brett Steenbarger, Ph.D. @ TraderFeed

Unless you as a trader operate with a consistently high hit rate on your trades--far and away the exception in directional trading--then you're likely to experience sequences of winning and losing periods simply as a chance occurrence.  The noisiness of markets, which means the presence of flows from different participants at different times, ensures that ...

Learn to avoid price targets to explode your equity

almost 7 years ago by Michael Martin @ MartinKronicle

Subverting your ego is good for your trading. Price targets cut your profits at the exact moment you should be either adding to your winners or just letting them run. Let the market tell you when the move is over.  Price targets are about predicting the future and human beings are horrible at prediction at best. Read Expert Political Judgment by Phil Tetlock […]

Steam Drops Bitcoin, Citing Volatility And High Fees

almost 7 years ago by

PC gaming platform Steam no longer accepts Bitcoin as a payment method, Valve announced today. The company said it won't accept the cryptocurrency any longer due to "high fees and volatility" in its value. Regarding the fees, Valve pointed out that the transaction fee charged to the customer using Bitcoin rose from 20 cents when Valve started accepting it to almost $20 today. Valve doesn't control these fees, but the company is unpleased with the situation it puts its users in. Regarding the volatility (Bitcoin stands at around $13,000 USD today but it fluctuates significantly and often), Valve said this is problematic in part because Bitcoin's value is only guaranteed for a set period of time. "So if the transaction doesn't complete within that window of time, then the amount of Bitcoin needed to cover the transaction can change. The amount it can change has been increasing recently to a point where it can be significantly different," Valve said.

The truth your equity curve reveals about your trading process

almost 7 years ago by Michael Martin @ MartinKronicle

What is the trajectory of your trading performance? . Your Equity Curve shows you the efficacy of your process and trading rules. What does it tell you if you are afraid to create one? Not worth your time? My guess is that the truth might be hard to acknowledge and we can bullshit ourselves to eternity.

Three Key Ingredients of Trading Success

almost 7 years ago by Brett Steenbarger, Ph.D. @ TraderFeed

In a recent post, Mike Bellafiore explained why one of the traders at his firm has been experiencing career-best success lately.  What Mike modestly leaves out from his post is that quite a few of the traders on that floor have been experiencing their best ever returns.  That creates a wonderful database for studying the ingredients of trading s...

Tuesday links: obviously wrong

almost 7 years ago by abnormalreturns @ Abnormal Returns

Review: The Water Will Come: Rising Seas, Sinking Cities, and the Remaking of the Civilized World by Jeff Goodell is hard to...

How to Exit Winning Trades After They Go Parabolic

almost 7 years ago by Michael Martin @ MartinKronicle

The hardest trade is exiting winners. The hardest trade for many is exiting a winning trade. That's true under normal situations. But once a security has gone parabolic, all the backtested rules go out the window as I show in this video.

This trader is “killing it” as a scalper

almost 7 years ago by Bella @ SMB Capital

One scalper on our desk proudly wrote to Dr. Steenbarger and me about his progress recently: Had 3 personal best this week: 1) Best day: 167K net 2) Best month: 601K net 3) Best year: 1.5M net Cheers! $601,000 in net profits is a sensational trading month! A scalper is a trader who makes very short-term trades.  He is active.  ... Read More

Two Ways Buy Stop Orders Determine your Profitability

almost 7 years ago by Michael Martin @ MartinKronicle

There is great wisdom in Buy Stop Orders. Enter your Buy Stops above the market and let the market come to you. This way you won't chase any market or any trade.

Google Search Trends Confirm the Bitcoin Run-Up

almost 7 years ago by Dr. Duru @ Dr. Duru

I am a fan of using Google Trends for understanding the dynamics of financial markets. I have specifically used it in the past for analyzing extremes in sentiment and trading on gold. Given Bitcoin’s latest historical surge – this time through $11,000 – I wondered whether Google (GOOG) searches were increasing alongside the price of […]

Trading Psychology Challenges - 7: Overtrading

almost 7 years ago by Brett Steenbarger, Ph.D. @ TraderFeed

Sound trading lies at the intersection of rigorous thought and decisive action.  Without rigorous thought, we trade randomness and fall prey to impulse.  Without decisive action, we betray our best ideas.<span style="font-family: Georgia, Times New Roman, serif; font-size...