?Cut your losses short and let your profits run.? So many traders chant that mantra while working in the markets. Anyone who has ever had money in the markets knows that this is an easy thing to say but much harder to actually do.
This morning I was flipping between some news networks and after listening for two minutes, you would think the world was coming to an end?or as TV tells us, ?falling off a cliff? (as in the impending fiscal cliff).
A listener question started the great collar debate of 2012. Listen for yourself here.
It is all too easy to get tunnel vision when it comes to trading. Often when a person trades, they will focus so much on the time frame on which they are identifying their trades that they fail to acknowledge the dangers that can affect their trade from a larger time frame.
In this issue, we update our market indicators along with a short strategy comment about closing hedge positions followed by some interesting new Apple Inc. (AAPL) suggestions from an experienced well-known contributing author.
For those of us attempting to understand market movements we propose yearend profit taking, before a likely capital gains tax rate increase next year, along with “fiscal cliff” uncertainty producing a wait and see attitude, are the two best explanations for the recent low volume up drift among others floating around.
Uncle Mike makes tentative steps towards getting back into AAPL.
Futures markets exist for the purposes of price discovery (facilitation of trade) and transferring risk to counterparties (hedgers trading with speculators).
One of the bullish strategies in the arsenal of an options trader is that of selling puts.
Professional traders make a living from trading what the charts tell us to trade ? not our beliefs of economic strength or weakness.
A common question I get from students is: ?How long should it take me to become successful in trading?? This has always been an extremely difficult, if not impossible question to answer. The reason is that everyone is different. We all have different abilities and also define success very differently.
One of the things I learned through my studies of the markets is how to judge the potential strength of a trend reversal.