The comments herein are not applicable to all traders. But to those for whom they are applicable, you will know it.
Four part question:
1 Have you ever had a strong feeling that a market was about to do a certain thing? As an example, let’s say you had a strong feeling the S&Ps were about to rally 30 big points.
2 Next, have you ever then jumped into the market AFTER it started doing what you expected it to do? As an example, let’s say you bought the S&Ps after it rallied 20 points.
3 Next, have you ever then been spooked out of the trade you chased on the first adverse reaction against your position. Going back to our example, you chased a 20 point rally in the S&Ps, then got shaken out on a 10 point reaction.
https://www.peterlbrandt.com/wp-content/uploads/2016/03/Trading-commentary-A-Day-late-a-dollar-short.jpg674899Peter Brandthttps://www.peterlbrandt.com/wp-content/uploads/2020/04/TheFactorReport-small-logo.jpgPeter Brandt2016-03-30 09:17:272016-04-19 09:39:00Trading Commentary — A day late, a dollar short
Novice traders often begin their speculative endeavors with many false assumptions. Of course, the marketplace charges a heavy tuition fee (in the way of trading losses) to correct false assumptions. Once such false assumption is that profits can be made in any and all market environments – a trader just needs to constantly adapt to changing trading environments to figure out how to cash in on the price moves. As an example, a novice day trader or scalp trader may believe that each new day in the S&Ps is a blank slate – he or she just needs to find the formula that will work for that day. Such thinking is faulty and will result in long-term trading frustrations and capital losses.
A trader cannot be successful over an extended period of time without having an organized and systematic process of trade identification, overall risk management, trade sizing, trade management and emotional/psychological stability. The reality is that any given approach to trading will have good times and bad times, good weeks and
In more than 40 years of trading, I have never met consistently profitable traders who did not have a style unique to themselves
Over the years I have constantly harped that to be successful a trader must develop his or her own unique approach to trading. The Factor is not a trading or signaling service because I do not believe in signaling services.
I am privileged to have belonged for years to a private online forum that includes some of the best traders in the world – a number of whom have been featured in the Market Wizards series. Recently the subject of mirroring another trader’s style was a topic of lively discussion within the group. There were some remarkably insightful comments made that I want to share with you. These comments were made by traders whose names you would recognize.
Read More
https://www.peterlbrandt.com/wp-content/uploads/2016/03/Modeling-Yourself-After-Another-Trader.jpg597899Peter Brandthttps://www.peterlbrandt.com/wp-content/uploads/2020/04/TheFactorReport-small-logo.jpgPeter Brandt2016-03-24 10:07:182016-03-24 10:17:00Is it possible to copy another trader’s exact style?
I get many questions on what a typical day looks like for me. This is an important question because the PROCESS of trading is extremely important.
Friday afternoon late
• Print out a list of my positions and open orders
Saturday
• Scroll through weekly charts of the “long list” of markets I monitor on a weekly basis. This typically includes about 50 futures markets, 25 forex pairs and 25 equities.
• Create a “short list” of markets of interest, including all the markets in which I am entering a new week with a position. The “short list” usually included about 20 to 30 markets.
• Scroll through the daily charts of the “short list” to determine those markets that could generate a buy or sell signal the following week. From this review I create my “active list” which includes the markets in which I hold a position and markets in which I will develop a trading strategy.
• The “active list” typically includes 10 or so markets. I monitor this list carefully. I may even monitor this list inter- day for an asymmetrical trading opportunity.
• For open trades, I review my target and stops orders to determine if any modifications are needed
• For possible new trades, I determine an entry strategy, risk management guidelines and trade sizing
Read More
https://www.peterlbrandt.com/wp-content/uploads/2016/03/the-process-of-trading.jpg598899Peter Brandthttps://www.peterlbrandt.com/wp-content/uploads/2020/04/TheFactorReport-small-logo.jpgPeter Brandt2016-03-23 11:29:152016-03-23 11:53:50My Trading Day
Not all market environments are equal. Similarly, the same market environment can treat different trading styles in very different ways – some favorably, others miserably. The current markets, in my opinion, are neutral/hostile to classical charting principles. Current markets are volatile; false and premature breakouts have increased in 2016 to date; and, there is a lack of substantial patterns under construction. I have experienced this type of trading environment before – many times. There are profits to be had in some markets, but there are also an oversupply of land mines. For me, this type of trading environment has not correlated well with a robust three-month forward ROR. Of course I will continue to take signals that are promising knowing that sooner or later markets favorable to classical charting will return.
Warning: I generally ignore one-day price action, preferring area patterns. Yet, nearly every market discussed in this Update experienced a narrow real-range bar on Friday that occurred at or just below the close of Thursday’s wide range day. This development suggests the possibility of a shake out next week. According, I enter next week in a very defensive frame of mind.
The last Factor Update commented on a possible bottom in Soybeans based on a H&S bottom on the continuation graph (most active contract roll).
A close above 900 would, in my opinion, complete this bottom. It is unfortunate that the charts of the individual contract months do now show the precision of the continuation graph. This chart illustrates the reasons I far prefer a flat or horizontal neckline. Even though the neckline as drawn may be violates, the left and right should highs remain as serious resistance points. Thus, even though the H&S pattern might be completed with a neckline breakout, the market remains in a trading range.
Trading Commentary — A day late, a dollar short
/by Peter BrandtThe comments herein are not applicable to all traders. But to those for whom they are applicable, you will know it.
Four part question:
1 Have you ever had a strong feeling that a market was about to do a certain thing? As an example, let’s say you had a strong feeling the S&Ps were about to rally 30 big points.
2 Next, have you ever then jumped into the market AFTER it started doing what you expected it to do? As an example, let’s say you bought the S&Ps after it rallied 20 points.
3 Next, have you ever then been spooked out of the trade you chased on the first adverse reaction against your position. Going back to our example, you chased a 20 point rally in the S&Ps, then got shaken out on a 10 point reaction.
4 Next, have you ever then watched the market
Factor Report – March 27th
/by Peter BrandtGeneral trading commentary
Novice traders often begin their speculative endeavors with many false assumptions. Of course, the marketplace charges a heavy tuition fee (in the way of trading losses) to correct false assumptions. Once such false assumption is that profits can be made in any and all market environments – a trader just needs to constantly adapt to changing trading environments to figure out how to cash in on the price moves. As an example, a novice day trader or scalp trader may believe that each new day in the S&Ps is a blank slate – he or she just needs to find the formula that will work for that day. Such thinking is faulty and will result in long-term trading frustrations and capital losses.
A trader cannot be successful over an extended period of time without having an organized and systematic process of trade identification, overall risk management, trade sizing, trade management and emotional/psychological stability. The reality is that any given approach to trading will have good times and bad times, good weeks and
Is it possible to copy another trader’s exact style?
/by Peter BrandtIn more than 40 years of trading, I have never met consistently profitable traders who did not have a style unique to themselves
Over the years I have constantly harped that to be successful a trader must develop his or her own unique approach to trading. The Factor is not a trading or signaling service because I do not believe in signaling services. I am privileged to have belonged for years to a private online forum that includes some of the best traders in the world – a number of whom have been featured in the Market Wizards series. Recently the subject of mirroring another trader’s style was a topic of lively discussion within the group. There were some remarkably insightful comments made that I want to share with you. These comments were made by traders whose names you would recognize. Read MoreMy Trading Day
/by Peter BrandtFactor Update, March 20, 2016
/by Peter BrandtGeneral Market Commentary
Not all market environments are equal. Similarly, the same market environment can treat different trading styles in very different ways – some favorably, others miserably. The current markets, in my opinion, are neutral/hostile to classical charting principles. Current markets are volatile; false and premature breakouts have increased in 2016 to date; and, there is a lack of substantial patterns under construction. I have experienced this type of trading environment before – many times. There are profits to be had in some markets, but there are also an oversupply of land mines. For me, this type of trading environment has not correlated well with a robust three-month forward ROR. Of course I will continue to take signals that are promising knowing that sooner or later markets favorable to classical charting will return. Warning: I generally ignore one-day price action, preferring area patterns. Yet, nearly every market discussed in this Update experienced a narrow real-range bar on Friday that occurred at or just below the close of Thursday’s wide range day. This development suggests the possibility of a shake out next week. According, I enter next week in a very defensive frame of mind.Market Review
Hodge-Podge
/by Peter Brandt