trading

trading

Wednesday 9 October 2019

Stocks caught a bid with the S&P 500 rising nearly 1% to erase the bulk of yesterday’s losses.

Volatility has returned to the stage, as the broad index has now moved up or down more than 50 basis points in five of the past six trading sessions.

Tuesday 8 October 2019

Recap Oct. 8

Stocks were hammered with the S&P 500 falling more than 1.5%, as the broad index now sits more than 4% below its July 26 high-water mark. The VIX jumped above 20.

Tuesday 24 September 2019

Friday 20 September 2019

"Acceptance"

For many of us, acceptance is a hard thing to swallow. Especially when things go against us. Yet when it comes to trading, accepting the outcomes of all your trades, not just the good ones, is going to be key to your longevity.

There will always be situations out of our control that are going to see us giving back some profits. Or taking a loss. Yet just as we are happy to give ourselves a pat on the back for our wins, we also need to accept responsibility for our losses. After all it was us that pulled the trigger.

Here are a few tips and reality checks towards accepting everything that we do in our trading. Whether the outcomes end up being in our favour or not.

1. Failure can follow success / Success can follow failure

It’s easy to get over confident when you have a few winning trades in a row. It’s also easy to get down on yourself following a few losses. Yet this is the name of the game. Accept that there are ups and down in this business. So long as you have a solid methodology, don’t allow your psychology to second guess it.

2. Understand that there are risks in every trade

Everything in life is a risk. You can wrap yourself in cotton wool and never go outside the house to lower your risk of failure. Yet that is not what life is about. After you have taken a trade, if you are constantly looking at your phone and swearing at it when your trade goes against you, then you have not accepted the consequences of risk. When you do accept these consequences, sure you might swear about your loss. Yet you’ll get over it quickly and move onto the next trade.

3. Markets WILL move against you

Even your best trades will spend time back filling before moving forward again. It is the nature of the market. Accept the process and don’t panic yourself out of perfectly executed trades.

4. No one knows what the markets are going to do at any given moment

We say this a lot, yet as soon as we accept this fact as traders, life suddenly becomes a whole lot easier. Add this one to your affirmations and a weight will be lifted off your shoulders. Ego is about thinking that you know. Trading is about processes. And the discipline to follow those processes no matter what so called experts are yelling at you.

5. You are going to be wrong – A LOT

Accepting that trading is different to nearly every other profession is important. For one, you don’t have to be right most of the time to keep your job. Some of the most profitable and successful traders only win half the time.

Thursday 12 September 2019

The trend is now up, no hedges on. Risk on.

Stocks caught another bid, with the S&P 500 extending its gain for the week to 1.2% and pushing the broad index to within a few basis points of its July 26 high.

Tuesday 3 September 2019

"Recap Sept. 3"

A dip below 50 in the August ISM Manufacturing PMI (its lowest since August 2016) helped the bears get the upper hand as the S&P 500 lost a bit less than 1%, while Treasurys rallied again with the 10-year yield falling below 1.47%.  Gold rose above $1,550 intraday for the first time since April 2013, while WTI crude fell back below $54 a barrel and the VIX finished at 20. 

Monday 2 September 2019

"There always remains an opportunity to make a new start."

Though it may not seem so when you first encounter a serious blow, you can never lose two of the most important assets you have. These are the power of your mind and your freedom to use it. Once you have turned them to understanding what laid you low, you can begin forming new plans. You may not have the money you once had; you may lack the allies you had cultivated. But you still have the benefit of a universe that eventually rewards honest effort, as well as gaining the experience of mistakes you will never make again. Remember, no matter where you are now, whatever you can conceive and believe, you can achieve.

Friday 30 August 2019

"Recap Aug. 30"

Stocks drifted sideways to finish the week higher by a healthy 2.7% on the S&P 500, leaving the broad index near the upper end of its August range and within 3.5% of its high-water mark.  The highest close for the Dollar Index since May 2017 helped pressure commodities, as WTI crude and gold finished at $55 a barrel and $1,523 an ounce, respectively, and Treasurys ended little changed with the two- and 10-year yields both settling near 1.5%.  The VIX closed at 18.5.

Thursday 22 August 2019

"Recap Aug. 22"

Stocks shook off early losses to leave the S&P 500 little changed for the day, as the broad index sits near the upper end of its two-week range and green by 17% year-to-date. Treasury yields ticked higher across the board, with both the two- and 10-year yields settling near 1.62% (the three-month vs. 10-year spread remains inverted by more than 35 basis points).  WTI crude and gold settled at $55 a barrel and $1,499 an ounce, respectively, and the VIX rose 6% to 16.70.

Meanwhile, economic data continue to indicate trouble, as this morning’s reading of the Markit Manufacturing PMI for August fell below 50 (indicating contraction) for the first time since September 2009. 

Tuesday 6 August 2019

Market Intelligence Report Overview

The market is oversold and made a momentum low...........but possibly not the price low. 

Volatility... staying with us for a while.

Investors... full hedges on.

Traders... to each his own.

Monday 5 August 2019

Hedges did their work today. Moving down the stops on the short hedges and enjoying the ride.

"An overnight devaluation of the Chinese Renminbi pushed the exchange rate to more than seven per dollar for the first time since 2008 and spurred another sharp selloff, as the S&P 500 sank 3% for its worst one-day showing of the year.  The broad index saw its year-to-date gains whittled to 13.5%, and sits 6% below its July 26 highs

Treasurys ripped in near lockstep with yields declining 11 or 12 basis points across the curve and the 10-year falling to 1.72%, 35 basis points above its record close in July 2016. WTI crude fell back below $55 a barrel, while gold rose to $1,463 an ounce, its best close since May 2013.  The VIX finished above 24 and has nearly doubled in the last five sessions."