Mar 312014
How High is Too High to Buy? Tulipmania

When Has an Investment Gone Too High to Buy? Is it Priced High or is the Price Reasonable? Financial Bubbles. If you do enough financial market reading sooner or later you will run across references to “Extraordinary Popular Delusions and the Madness of The Crowds” written by Charles Mackay in 1841. The primary sections of [...]

Feb 182014
Types Of Trading Systems and Finding Yours

How many types of trading systems are there? Google this question and you will get several answers. Amazingly – there is no agreement on this question. It appears the answer, as in beauty, is in the eye of the beholder. This is because different authors put different trading systems into different size buckets. One author [...]

Feb 042014
The Success Rate Of A Trading Setup - The Hammer

The Description Of A Trading Setup The description of a trading setup can be as simple as “When a stock hits a new 52 Wk high, then…” – Or – As complex as one that requires four or more conditions to occur.  A Trading Setup is a description of ALL conditions necessary for an Entry Signal [...]

Jan 282014
Your Trading System - Which is More Important - The Entry Signal Or Exit Signal?

Six Basic Elements of a Trading System To answer this question – let start with what the basic elements of a trading system are: The Financial Market it’s designed for the market volatility, financial instruments  (equities, commodities, forex) Time Frame for trading system day, short-term, intermediate-term, long-term Entry Signal complete description of the entry signal and [...]