Recent content by pennycapitalist

When I emoted on each trade independent of the trades before it, my emotion matched the trade. I learned to smooth my emotions over a whole series of trades. It helped for me to believe that over a whole series the end result would be profitable. Recently I had 14 losses in a row; my...

Taking a long position two bars above the cloud, 14 of my first 19 trades made money. I thought I had found my holy grail. Then my next 14 trades lost a little each on all of that 14, but I still had 1/2 the money I had won on the first 19 trades. I began to test new filters and am winning...

I'm using ichimoku with some success. I like to enter a trade two bars above or two below the cloud for a short. I need at least one other catalyst to confirm. It might be fundamental or some technical like a dip from a new high breaking out, cup and handle breakout, reaction to news, or...

Once I believed that the existence of traders who consistently made money proved that prices were not random. Then I learned that an edge can and does exist right along with random price movements of a constantly changing human psychology that decides prices. Now I see it as a little order in...

To stop losing, stop trading with real money. Trade with a demo account until you have a system that works on paper (working in real life depends on your execution but first things first). If you trade all over the place the only thing you'll learn is that you need discipline. Define precise...

Experiment in emotion I was trying to quantify the series of indicators I use to help me trade, and discovered something interesting about myself. The indicators are Price Action, 7,14 moving average, 7 day RSI, and MACD. I loaded five years of data for a stock and adjusted the screen so I...

After gambling there are three kinds of trades. 1. First is mechanical where the setup is defined exactly, and so is the entry and exit. 2. Next comes the subjective where the mechanical system is tweaked a bit by logic and rationality. 3. The last is intuitive from a state of pure knowing...

I need to read this paper again a couple of times and maybe get out a diagram of the brain to get a good feel. It covered the way the information we accept for use in updating is biased according to our emotions which is important to understand. It mentioned, I think, that those who are...

Euphoria (long) Most top traders have agreed that keeping the emotions under control, perhaps even sublimated, is important to good trading. Last Wed. I put in an order to short Sears. The order was rejected for lack of shares to borrow. Sears stock went down I believe $4, and I was...

Northeastern Univ. Professor Lisa Feldman Barret says she has found the specific location in the brain that is the "epicenter" of predictions. Her report asserts that limbic tissue which helps create emotion is the center of predictive ability. In recent years, scientists have discovered the...

It is the nature of man to die; he begins to die even as he is born. Perhaps it is natural for a finite being to trade an account to its demise. Somehow a few people learn how to trade contrary to the finite nature of their being in a more infinite way...so their account grows as they continue...

As a canslim trader with little skill in the negative side of the market, the head on my shoulders told me several weeks ago to cash in and learn how to trade an indecisive market. The record days had me second guessing myself...but plenty of down days to confirm my plan is working just fine...

I have no idea as to the character of Darvas. His book, true or not, confirmed to me that one could learn by their own observation. I understand he taught the little guy to start protecting their accounts with stops. I understand the court dropped the charges and that the prosecutor spread...

Hi David, If you are going to try Mr. Charts snipe setup, open up L2 and the time and sales. Paper trade a few and watch the Price Action, the bid/ask, and the time and sales. See if it helps. It's a bit like watching cars on the freeway. If the traffic is too fast, you might get hit by a...

One might need to hurry if they want to resurrect the exact Darvas casket from the grave. Wire services are hard to find these days :-)