When To Protect Profits

Anyone who is familiar with my work using the Fibonacci ratios will hear me repeat some things over and over and over. One of those things is that many moves tend to terminate at extensions of prior swings if only temporarily. This is when I strongly suggest that traders ratchet up their stops if they … Read more

Trading A Small Account – Part 5

In this article, we are going to discuss five things that can cause new traders with small accounts to fail. We will also discuss ways to prevent them from happening to you. Five things that could make you fail as a trader: Lack of Methodology Lack of Discipline Unrealistic Expectations Lack of Patience No Money Management Plan … Read more

Is This Indicator Signaling A Near Term Top?

I’ve watched the Cumulative TICK indicator for the better part of six years now. Recall that the Cumulative TICK indicator creates a running total of the average TICK reading throughout the day. It gives us a broad sense of the underlying buying or selling going on behind the price action. One of my favorite uses of this indicator is … Read more

Risk On Or Risk Off?

U.S. equity indices have continued higher from February 11th lows and it seems all traders are speculating about when (or whether) the next downtrend will occur. Complicating this question is that many typical correlations seem to be breaking down. Take for example both Treasuries and the Japanese Yen. Both usually trade the opposite direction of … Read more

hurry-up-and-wait

Hurry Up And Wait

I spoke in the Options trade room on Monday morning about the possibility of very difficult, corrective type garbage trading this week. Bonds were falling and the indices were going down too. This was all happening between 7:20 am and 8:00 am Central Time. Wall Street had not officially opened, but with correlations breaking down already, I … Read more

Trades Gone Wild – Part 3

If you have been following this series on Trades Gone Wild, we have been talking about the Uh Oh trade.  This is the options trade that we all have at one time or another in which one day it is working well, and the next day it blows up on you. In parts 1 and 2, we talked about … Read more