Jun 22, 2015

How Live Trading Can Enhance Your Backtesting Results

On today`s Newsletter I wrote about how live trading can enhance your backtesting results. I also recommended an article about how uncertainty differs from risk.

The email based Newsletter is sent from Monday to Friday just before the opening of the U.S. Markets. If you haven`t subscribed yet, you are missing out!

Jun 19, 2015

Free Newsletter Sample: Trading Lesson #501

"If you can`t take a small loss, sooner or later you will take the mother of all losses." 

The ability to take small losses is a skill shared by all successful traders. And this is where most novice traders really struggle. The inability to pull the trigger and close out a trade that is not working and taking a small loss is a thing that looks so obvious in print but it is a habit that comes with discomfort for many traders.

One practical technique that I want to suggest to you today is to keep tracking your trades using the Profit Factor. You can grab a piece of paper and you start to register the winning trades on top and the losing trades on the bottom. What you must focus on, is not on the number of trades that are on the top (winning trades) or on the bottom (losing grades) but on the ratio between the aggregate winners and the aggregate losers. So you want to put big winners on top and small losses on the bottom.

**this is an excerpt from my daily email based Newsletter.

Free Newsletter Sample: Trading Lesson #503

Trading Lesson #503: "Just because you missed the first major portion of a new trend, do not let that keep you from trading with that trend." 

 This is a common mistake among swing traders and stock pickers. For some reason the trader misses the first part of a new, emerging trend and then he is unable to pull the trigger and get on board. Or worse still, the trader gets so angry about not being in the market that he starts to fade the trend by going against it.

I have seen this so many times, that I think this is one of the biggest mistakes that traders that are already in developed stages of their learning curves still make very often. Avoid that, do not be afraid to play a trend, even if you are not in from the very beginning. Most likely nobody is.

**this is an excerpt from my daily email based Newsletter.

Jun 18, 2015

Short Term Mean Reversion vs Trend Following

Today on the Newsletter I wrote about where to look for markets with strong trends, and where a short term mean reversion strategy will be best suited.


Jun 14, 2015

The Dangers Of Overconfidence

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Jun 9, 2015

Today`s Best Tweets: Nikkei, Wal-Mart, American Express, Yen

"Nikkei breakdown last night was a big one I'll be watching closely. When bullish patterns resolve down, something bigger is going on." - J.C. Parets, Market Technician

"Bank Of America (BAC) loves higher rates." - Mike Valletutti, CTA ‏

"Since January 15, Netflix has doubled. In the last two years, it's tripled." - Eddy Elfenbein

"I don't see yen on the list of concerns about the stock market.....if yen catches a bid, it's gonna be a problem." - J.C. Parets, Market Technician

"Wal-Mart (WMT) is now the worst performing stock in the Dow Jones this year, down 15.5%. Second worst is American Express (AXP). AmEx is down 14.9%.” - Paul R. La Monica, CNN Money

"If you haven't gotten up from your chair in the last 30 minutes now is a good time. Grab some water walk around.” - Sunrise Trader, West Coast

The Success Equation In Trading

In trading only one equation pays,

(Knowledge + Experience) = Wisdom

Jun 4, 2015

#397: Don`t Try To Predict The Market.


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#482: Daily Preparation


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Jun 3, 2015

Event Risks: What Should You Do?

- There are a few event risks for the rest of the trading week especially if you are trading forex (ECB meeting today, Greek deadline for IMF payment, U.S. Employment Report on Friday)

- You can just step aside and let the event risks play out or adjust your position size accordingly. - my experience tells me that is extremely hard to play the markets when there is such a cluster of event risks;

Let me help you become a more focused, organized and successful trader. Try out my daily trading newsletter for only 14.99 dollars per month.

Learn to trade like the very best, subscribe to the HMS Trading Newsletter.


My Trading Newsletter will help you if you want to shorten your learning curve, or improve some aspects of your overall trading performance. The topics range from:

1) The mental skills that are necessary for sustained trading success
2) The technical side of the markets
3) Tricks of the trade, the little things that traders with many years of experience discover by themselves and that are highly effective in trading

You can subscribe to the Newsletter on the right sidebar of the website. For only 14.99 USD per month, you will get a trading lesson, a trading podcast and useful trading notes every day from Monday to Friday on your email. "Invest in knowledge, it pays the best interest."