CNBC published an article near closing on Friday. It’s titled, “The Violent Market Sell-Off Was Easy to Spot and a Long Time Coming.” In the article, they list a variety of reasons why they were able to predict the drop. When I read the article, I shook my head in disbelief. CNBC had been pumping out “market rally” and “market
After a tumultuous and emotional few weeks in the markets, I’ve finally had a bit of a breather from defending positions. It isn’t over yet but right now, I am moved to write on this particular topic over all the others. Recently, I’ve had the opportunity to engage in debates that involve probability. That is, what is the chance that
I was an insurance underwriter before I became a retail trader. Due to my experience and training, I look at the financial markets with a different perspective than the usual personal investor. Insurance underwriting is primarily risk management for financial investments and in the short time I’ve been trading full-time, I discovered that I applied much of that experience to
I think it is important to touch on this subject. Personally, I believe that 99% of trading is psychological and only 1% is actual trading itself. So it should come as no surprise that I think we should focus a great deal on our thoughts, habits, and beliefs when it comes to trading. It is through knowing ourselves (how we
My father and I have a running joke on trading the stock market. In Chinese, the word “shares” is called 股票 (pronounced as “goo-pew” in Cantonese or “goo-piao” in Mandarin). The literal translation for each character is simply “stock ticket”. Phonetically, we joke that it sounds like “guess security” – that is, you have to guess the value of the security.
Alcoa (AA) is an interesting case study. I’ve spent probably several months worth of analysis on this particular stock. But recently, I began to trade based purely on price analysis and I wanted to apply some of those principles to trading Alcoa. I would also like to figure out if my methodology is sound. In addition, I have short positions
As I’m writing this, CBOE Bitcoin futures contracts had just surpassed the $20,000 mark. In the last few months, Bitcoin has received unprecedented attention from the media and investors alike. Among all the topics to discuss, everyone is obsessively fixated on a single question: is Bitcoin in a bubble or not? Alas, I don’t posses a functional crystal ball. I do
There have now been enough occasions where people I’ve met have inquired on how I make money in the stock market. I honestly don’t have an answer. The reality is I’m still learning and developing my trading methodology. However, while I don’t have much experience to share, I do have some that should at least help beginners avoid a few of