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Fear, Greed and Money – Short Test To See If You Sabotaging Yourself?

Today it’s time to talk (again) about investing and trading and how your emotions will damage your investing and trading returns unless you have an effective method for circumventing them. I keep going back to this topic because it pretty much determines if you make it as a trader or not. There are lots of [...]

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What will the tax cut extension do to the markets and how can it affect you?

As you know this is not a political newsletter (although I do have an opinion), but an investing/trading newsletter. Several students have asked me if I thought the tax cut extensions (if it does go through, even with the compromise) would prop the market up. My answer is 99% yes. I learned a long time [...]

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A Couple Investment Scams to Avoid

Good times and bad, the scammers are after your money. Run; don’t walk, when you find one of these in your email, your USPS mail or a friend, relative or financial advisor touting them. First up, we have the Ponzi Scheme. I’m trying to have this one renamed the Madoff Scheme – even the guy [...]

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Trading’s “Golden Rules” Revealed

Unfortunately the golden rules of trading are not the same as the golden rule; love your neighbor as yourself. That rule will help you have success in life, but won’t help much in trading. In trading the 2 golden rules are: 1. Cut your losses short and let your profits run. 2. Use the discipline [...]

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Trading in the Trenches

Anyone can look at an old chart and say, “You should have done this or that.” But real trading is in the trenches, that is the live market. I want you to have every possible advantage. So, I let my students follow my trades, as I buy and sell, real time. Since my system doesn’t [...]

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Definition of perfect Stops and What your financial advisor is hiding from you

Most traders have had the painful experience of setting their risk stops only to have the price retrace to their stop and take them out before continuing in the trend. Although some traders swear that other traders are “running the stops,” actually what happened is the trader placed the stop too tight. Note: At times [...]

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Why have risk controls?

Every trader/investor must guard himself against drawdowns, which refer to the percentage drop in his account size after one losing trade or consecutive losing trades. For example, imagine that after losing a few trades in a row, your $20,000 account is reduced to $12,000; that would be a drawdown of 8,000/20,000 = 40%. If I [...]

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MUST READ: Don’t fall for this way of calculating performance

Some of you might recognize what I’m talking about and some of you won’t. Either way you will learn something new in this email and my new video. A few “gurus” calculate their track record is a way that will deceive the average investor. Instead of me saying how it’s done, I’ll take it directly [...]

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Fundamental vs. Technical Trading

First let me share what these two types of analysis are. Fundamentals, or as I like to call them fuzzymentals, try to predict ETF future prices by supply, demand, interest rates, government policy, weather, underlying economic factors, etc. In part it does work if you are an economist and very, very good at it, but [...]

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Who is going to bail out your investment accounts?

I’ve wanted to write about the government bailouts for some time, but have been busy trading and teaching new students. This short note is not about me or my system being your bail out ticket. Yes my system can help you. Yes I want to help you. But, yes you must want to bail yourself [...]

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