-
-
Exclusive Invitation
Get invited to the next How-To
Webinar! Type in your email to be
placed on our Updates List right now. Secrets From Successful Traders
Monthly Archives: January 2012
Ever notice when you start something new that people always say to you “make sure you have a backup plan!” It is usually said with a dismissive attitude and usually from those people that have never broken out of their own comfort zone. I don’t know about you but I’d rather listen to those that have been there…done that….and consider their input. Backup plans are fine but usually, if you have one, you will fall back into it. Odd how that happens isn’t it? However, this is about a different type of backup plan. This backup plan will help ensure you don’t lose money when the inevitable happens and the lifeline to your trading account, the internet, goes down. This week is my first week back at trading. I started off with a decent swing trade that was carrying over into Tuesday. I booted up the computer and could not …
We continue our 2012 Market Predictions with a presentation from Coach Shane Daly. Follow along in this video as he recaps his year trading in 2011, whether he stuck to his list, what he thinks personally will be happening in the markets in the year to come, and tried and true methods that will stand the test of time for 2012. Good trading.
NetPicks Educational Webinar The new year has begun and you know what that means… new market movement, opportunities and chances to profit! In this free educational webinar, you’re going to hear all about our market predictions for the coming year. What’s going to be white-hot in 2012, what trends are going to grow ice-cold and which 2011 trading techniques are going to stick around and make the long haul throughout 2012. Hear from myself, Mark, along with my co-pilot Brian as well as other members of the NetPicks Coaching Team (TJ, Ron, Will – we’re all going to be there in full force). If you’ve been wondering what’s going to change this new year, don’t hesitate to sign up for this FREE educational discussion and we’ll see you on Tuesday. Check out our individual posts for each Coach’s Market Predictions for 2012 Mark Soberman Market Predictions 2012 Troy “TJ” Noonan …
What Traders Need to Know to Assess their Trade Plans and Track Their Trading Progress I recently ran into a neighbor at the local grocery store who knows that I have been trading full time for a number of years now. He has a full time job at the Pentagon, but like a lot of people, also has a stock portfolio that he manages for himself. He often asks me what I think about particular stocks, or what direction I think the market is going, but this time the first question he asked me was “what is your win rate”? Now, I usually tell him that my opinion about particular stocks or the direction of the market is of little importance (even to me), and that no one should be taking stock trading advice or tips from anyone without first having their own solid back tested trading plan. But this …
Identifying Chop with the ADX The last few articles in this series have focused on identifying chop in the market. We started out with an overview, listing several technical analysis indicators that can help in the process, next we focused on the Bollinger Band Squeeze to identify consolidations, and finally we looked at a noise filter to highlight noise, or choppy price action, in the market. In this article we’ll take a look at the ADX (Average Directional Index). What Is It? The ADX was developed by Welles Wilder to identify periods of trending price action. The calculations for the indicator are based on changes in consecutive bar highs (+DI) and consecutive lows (-DI). DI stands for Directional Indicator. These values are combined and smoothed to yield the ADX. The exact calculations are too complex for this article, but you can find the details on line. As originally designed by …
Today is a new day right, so why should I bother looking at yesterday? Is there any use at all in looking at what the market did and where, during the previous day? YES! Markets constantly shift from balance to imbalance, consolidation ranges to directional exploration. The most relevant and new information we have about the possible acceptance of price is by comparing the open and the market’s reaction to yesterday’s range. So the question is what constitutes acceptance. Depending on which methods you use to analyze the markets, the answer to this may vary. Broadly speaking, it is persistent trading of a market at the same prices as were previously traded. So if the market spends a reasonable amount of time at these prices without encountering any major activity to move it to new prices, this can be considered acceptance to some degree. This doesn’t necessarily mean that price …
NetPicks Authors Series Download the interview here: Right click and “Save As” While trading is a difficult endeavor, it’s still possible to make money doing so in today’s markets. The real question is: how can you achieve this goal? What is required is adapting a successful existing business model to this speculative arena. The model that makes most sense is the “casino paradigm” and nobody understands it better than author Richard Weissman – a professional trader with over fifteen years of experience consulting and training traders and risk managers. In this NetPicks Author Series Webinar, we’re sitting down with Richard to discuss how successful traders tend to operate like a casino in that they develop a method that gives them “positive expectancy” and then unflappably implement their approach in the face of changing, and oftentimes volatile, market conditions. Specifically, we’ll also… Reveal the best-kept secret in trading, the cyclical nature …
Cover the Basics There are generally two types of traders and they are categorized as using a technical analysis type of swing trading system or a more fundamental analysis type. Those that use a fundamental trading system focus on the cause of price movements while technical traders focus on the charts and the price movement. Fundamentalists look at the macroeconomic indicators such as interest rates, employment rate and the general health of the economies. Trading systems that rely on technical analysis use historical price data from the charts and attempt to forecast the future behaviour or direction of price. These traders believe that all current information about the market is already factored in on the current price. Regardless of the trading system you look to use, remember that there is more than one way to take money from the market. There are many indicators that are used in technical trading …
Admittedly, sometimes we all misread the market from time to time and ‘look’ for entry signals at certain prices when we should not. But what about levels which are entirely valid and yet fail? You might suggest that if a level fails to hold then it’s probable that you won’t get a signal if your system is correctly designed and calibrated. Well sometimes this is true and sometimes it isn’t. Because the markets are made up of different all sorts of different players who trade for a variety of different reasons, levels are constantly failing on different timeframes all the time while also exhibiting favorable behavior. This is clearly a good reason for having a strong risk management plan in place. But if levels are constantly failing, why pay attention to them at all let alone use them to trade? All markets are pock-marked with literally thousands of minor and …
Here Come the Resolutioners As the new year begins, the usual begins to occur. Gyms across the country are going to see memberships increase as the “resolution” crowd starts to burrow into every corner of the halls of fitness. It is pretty admirable as these people have decided to better themselves. The fact is that it is short lived. Sure they will make a good run at it but within a month, their membership card finds its way into the bottom of the drawer. There are many reasons for this but one sticks out for me and that is the law of diminishing returns. They jump in with both feet expecting twice the amount of results. Sooner or later they burn out or are out due to an injury. What Does This Have to do with Trading? During the beginning of the year, many companies start their marketing process. They …
