Archive | May, 2011

Quantifying a Bottom in the Greenback

One way to quantify if a bottom is in for the U.S. Dollar is take a look at previous macro price patterns and see how the S&P 500 stock index – an asset class market and a proxy for the global economy — has called 4 out of the last 5 up-turns for the U.S. Dollar [...]

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Is Your Philosophy Aligned with the Markets?

Just as a structural iron worker will tell you walking on a 6 inch wide girder 50 stories above the street is simply putting one foot in front of the other, or a pilot will tell you landing a plane on a windy day is just a matter of staying focused and following step by [...]

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Trading in “The Wrong Stuff”

Over the many years of being around markets, trading markets, being around traders, and now working with traders, I know that more students than not have a real problem with admitting when they are wrong.  I also know that they very likely had this handicap before they took up trading – and that I absolutely [...]

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Commodity Reversal & the Currencies

While market reporters are searching for the reasons why commodity markets turned south all at once, the one event that stands out for us in today’s Keynesian influenced market place is the announcement just ahead of the Easter weekend of the U.S. President’s prodding of the Justice Department to look into the role speculators played [...]

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Trend Trading vs. Countertrend Trading

While I have studied counter-trending methods, and sat thru extensive workshops given by educators that teach counter-trending methods, the traders I consider my own mentors have all been trend traders.     After spending 12 hours per week over the past several years pointing out trade set-ups and signals to clients in live markets during the London [...]

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The Relationship Between Probability And Trading

Guest contribution provided by Forex Traders There is no such thing in financial markets as a “sure thing.”  In his best-selling book Fooled By Randomness, Nassim Taleb discuss the fascinating phenomena of the Black Swan.  A Black Swan is the thing you just never saw coming.  Taleb is something of an expert on this subject.  [...]

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