So trade very small until profitable. 70% of the time when I’m testing a strategy, I actually trade with one contract and I will trade that one contract over and over and over again until I get at least a 70% win rate. Once I get the 70% win rate, then I bumped...
Good morning! The SPX closed at another all time high on Friday by a few points. Overnight, futures dropped and gave up most of the gains, then recovered and now flat. Also on Friday, volatility as measured by the VIX, dropped by a lot to just above 16. The VIX has...
You wait to take losses hoping that the losses will turn into gains. This is probably the most prevalent example of greed. You wait and you wait, hoping that the that the market is going to turn around for you. And guess what? It almost never does. Stick to your trade...
When you make the wrong decisions and you lose big in a trade, you feel like it’s the end of the world. As traders, we all make mistakes from time to time. When this happens to me, I take a step back, think about what is really important in life and put that bad...
Until you are good at your craft, you will be able to increase the size of your trades little by little. When trading larger positions, fear can disrupt the way that you trade. That’s what it does. Fear is a distressing emotion aroused by impending danger, evil...
Good morning and Happy Jobs Friday! Job numbers were 943,000 and unemployment rate dropped to 5.4%. Wages were up 5% which was all pretty strong. The estimates were all over the place but this reflects a continued strong recovery. Bond rates rose over 5% on the news...
