Some traders are reluctant to put on a position because they are torn between what they perceive as conflicting market factors. Here’s a typical quote from such a trader: “The moving averages are positive, the market is trending higher, but the RSI shows the market as being way overbought. What…
Kaufman: Multiple Trading Methods and Market "Noise"
Many traders attempt to find the single-most “robust” trading strategy possible by looking for one set of rules which works for all markets. Such systems don’t take into account the fact that markets can change quickly and dramatically due to a news event, according to Perry Kaufman.
Don’t Hold Your Breath Too Long While Under Water
The headline of this educational feature pertains not to swimming but to trading. Most professional traders do not hold onto their losing positions for very long. Once a trading position goes “under water” most professional traders will immediately begin looking for an exit strategyÂÂÂÂ-if they do not already have one…
"Follow-Through" — It’s Significance for Your Market Position
Patience is a virtue in most endeavors in life, and it’s certainly a valuable asset in futures and stock trading. You will many times hear me use the important term, “follow-through,” when I discuss significant market moves such as price breakouts or trend changes.
The Why Wall Street Doesn’t Know About Position Sizing
This week I’m going to be a little controversial because I’m going to put forth some rather bold statements. First, it is possible with small amounts of money and a reasonable trading system to make outstanding rates of return (50-100% or more) through position sizing. Second, if you have too…