Blog

Below, you will see links to new pages that have been added to my website and updated information on existing pages. I also post interesting news items that I find around the web and trading ideas.

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Dec 06, 2016

Learn to Swing Trade With These Example Stock Trades

Here are 5 example trades for discretionary swing traders.

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May 01, 2016

The 5 Components to Any Trading System

When I’m asked by new traders for advice, I often tell them to think of trading like going on a trip to a place they’ve never been before. “What would

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Feb 10, 2016

How to Scan for Stocks - The Ultimate Guide

Writing stock scans is the only way to find the stocks with the exact criteria you need.

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Dec 03, 2015

Learn 4 Profitable Chart Patterns for Swing Traders

Here are 4 chart patterns used in technical analysis that you can use to trade stocks.

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Sep 25, 2013

Trader Education Week begins October 2nd

Elliott Wave International is having a free event that runs from October 2nd through the 9th. To attend this event you will need to register (free).

"When you register for this event you will have immediate access to 4 free trading resources from EWI analyst Jeffrey Kennedy. Then you will receive new lessons each day during Trader Education Week - each designed to help you learn to spot high-confidence trade setups in the charts you follow each day."

On the website it says that you will learn:

  • How to discover trading opportunities using the Elliott Wave Principle
  • Unique ways to time the market using Trendlines
  • How to employ Fibonacci ratios to calculate price targets
  • Candlestick and bar patterns that have proven reliability
  • How to apply Jeffrey's proprietary channeling technique
  • How to use Price Gaps to identify high-probability turning points

I'm not sure if this event is primarily for new or for more advanced traders but it might be worth checking out.

And you can't beat the price!

Register for free here.

Jun 28, 2013

CCI (5)

Looking for an edge? Want to capture profits on short-term swing-trading? Consider using the CCI(5) which is a leading indicator. I've been using this

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May 05, 2013

How Discretionary Traders Lose All Their Money

Imagine that you are about to go down a river.

In a raft.

With violent whitewater rapids.

You cannot predict what adjustments you will make to stay afloat. You only know that you have the skills to adapt to whatever actually happens.

The same is true with discretionary trading.

There are two parts:

  1. Your initial bias - which direction you think the stock will move.
  2. Adapting to the reality of which direction the stock actually moves.

The first is easy. The second is where traders lose money.

1. Your initial bias

Let's say you find a stock that has a bullish engulfing candle, at a support level, that is oversold. You think this stock will reverse so you buy the stock. You have just developed a bias as to which direction this stock will move next. In this case - up.

So good so far.

But now you have to forget this bias entirely and move on to the next step. This transition (or lack therof) is where traders lose money.

2. Adapting to the trade

Unfortunately, the next day this stock falls and closes under the low of the engulfing candle. It did not reverse so your bias is completely irrelevant.

You must adapt.

You must take the loss.

The biggest mistake

This is the biggest mistake that discretionary traders make. They don't transition from bias to adaptation. They hold on to their bias and try to force their hopes and wishes on a stock:

"This stock will go in my favor eventually."

"This stock has good earnings."

"I'll just adjust my stop loss order a little."

Etc...etc.

It doesn't work that way. What could have been a small loss is about to turn into a nightmare.

In a raft you adapt to protect your life.

In trading you adapt to protect your money.

Beginners: Learn the Basics

Intermediate: Trading Strategy

Advanced: Swing Trading Tactics