I will start a new feature today. I will review an investment book and give the highlights as well as how to apply their wisdom in today’s market. I will also include helpful tools like Internet resources, excel sheets, and programmed indicators and strategies.
Joel GreenBlatt How to be a stock Market Genius
We start with a […]
The Sell signal in the SP500 is flashing again. The market is $40 form our original entry but the Average True Range has not spiked and the Russell-SP500 spread has continued to rally. Both are hitting their bands. I will enter another piece of the Sep 1275-1545 risk reversal (long put -short calls) on the […]
A good article from WSJ about the last days of Bear Stearns.
Lost Opportunities Haunt Final Days of Bear Stearns
Ken Heebner of the CGM Fund has posted some unbelievable numbers. How about 80% return last year. Yes I said last year while everyone else was scrambling. He rode the housing wave up and down and jumped on the commodity boom. Check out this article
I put on a risk reversal in the Sep SP500 on May 20, 2008 with futures at 1421.00. I bought the Sep 1275 puts for 23.00 and sold the Sep 1545 calls for 13.00. My indicator for the short is a combination of two factors. I use a proxy for option volatility. It is […]
Today’s article roundup
A Tale of Two Housing States Real Clear Markets
Writedown Bug For Lehman Fortune
Trichet Says Shocks Aren’t Over for Europe’s Economy, WSJ Says […]
Maximum Adverse Excursion(MAE) is the maximum loss of a trade during its complete time period. It can be a valuable tool for stop placement. If your winners have low maximum adverse excursion then moving your contracting your stops can dramatically increase your results.
Example
I have an intraday daytrading breakout system in a Sector index. It is […]
Playing a breakout everyday can lead to nasty drawdowns. It would be nice to avoid the bad times. If you like playing blackjack then you are familiar with card counting. Card counters raise their bets when the count is unfavorable for the dealer. They are filtering the data and optimizing bet size. The same […]
The importance of risk management can not be overstated. But, what parameters aid the trader in his evaluation of his risk on each trade or as a portfolio? All trades should have a predetermined exit point at initiation. Rules governing the entry and exit will help alleviate the pressure of emotion and standardize trading results. […]
How can volatility expansion help the daytrader?
It sounds like a simple concept. I have a little homework for you. Click on this Amazon link . It is a book by Toby Crabel. I’m sure that you have never heard of him. But he is a legend in the managed futures industry and manages 5 Billion […]
