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Book Review of The Guts & Glory of Day Trading by Mark Ingebretsen

The full title of this book is The Guts & Glory of Day Trading: True Stories of Day Traders Who Made (or Lost) $1,000,000 by Mark Ingebretsen (2001). The book features the stories of a number of traders who took a small account and traded it to above a million bucks. As the book was published … Continue reading

Your First Mistake is the One That (Indirectly) Kills You (a.k.a. How to Blow Up)

Recently I have been hearing a lot of stories about traders who blew up their accounts. Many of these traders have been successful full-time traders trading for many years and even decades. Most of the stories go like this: A first mistake was made with a rule violation Holding a position overnight (for an intraday … Continue reading

Book Review of The Zurich Axioms by Max Gunther

The full title of this book is The Zurich Axioms by Max Gunther (1985). Gunther wrote that the Swiss are among the most affluent people in the world even though their country is small and does not have many natural resources. The reason being the Swiss are good at taking on risk and winning. The ‘Zurich Axioms’ … Continue reading

Book Review of The War of Art by Steven Pressfield

The full title of this book is The War of Art: Break Through the Blocks and Win Your Inner Creative Battles by Steven Pressfield. I got to know about Steven Pressfield from a webinar by John Carter (author of Mastering the Trade). He credited Pressfield’s book Do Your Work as his source of inspiration which propelled him … Continue reading

Book Review of The Game in Wall Street by William Hoyle

The full title is The Game in Wall Street And How to Play It Successfully by William E. Forrest Hoyle (1898). I am a sucker for old books on the markets. I tend to find them having better content compared to many of the books published nowadays on the markets. And it is always interesting that … Continue reading

Book Review of Deemer on Technical Analysis by Walter Deemer

The full title of this book is Deemer on Technical Analysis: Expert Insights on Timing the Market and Profiting in the Long Run by Walter Deemer and Susan Cragin (2012). Deemer had an entire career in Technical Analysis and worked with the who’s who of the industry. He started work at Merrill Lynch and worked under … Continue reading

What High Frequency Trading (HFT) Is

I came across this superb 5-minute YouTube video that explains what is high frequency trading. I summarized the points made below. The presenter headed quantitative research at Tudor and UBS, and was a portfolio manager at Citadel, so he knows what he’s talking about. More information can be found on the presenter’s website here. Objective … Continue reading

Book Review of Sniper Trading by George Angell

The full title of this book is “Sniper Trading: Essential Short-Term Money-Making Secrets for Trading Stocks, Options, and Futures” by George Angell. George Angell was a floor trader at the CME day trading S&P futures. Despite the book being published in 2002, it seems like the book is written at a time when traders still … Continue reading

Trading Mathematics and Trend Following

Came across this blog post which showed the mathematics of trading statistics, and had some interesting conclusions for trend following. Some quick points, to be making money, Profit Factor must be greater than 1. Profit Factor (PF) = Gross Gains / Gross Losses = (Average win * number of wins) / (Average loss * number … Continue reading

Book Review of High Performance Trading by Steve Ward

The full title of the book is High Performance Trading: 35 Practical Strategies and Techniques to Enhance Your Trading Psychology and Performance by Steve Ward. This is a pretty good book on trading psychology with lots of practical advice as well as quotes from various traders. Most trading psychology books are full of the ‘whys’, explaining … Continue reading

High-Frequency Trading Firms’ Shrinking Profits

There is an interesting article at BusinessWeek on HFT’s shrinking profits (link here). There was so much angst over HFTs driving the traditional trading models out of business. Now the success of HFTs have brought in so much competition that they are cutting the shrinking pie into small slices and forcing the less capable HFT … Continue reading

Trailing a Tight Stop vs. a Swing Stop: Which is Better?

I was just thinking about the pros of cons of trailing a tight stop vs. a swing stop in the context of intraday trend following for stock index futures. Let’s say that the market has just made a significant up move and it starts retracing. HIGH-LEVEL SCENARIO ANALYSIS Scenario #1: Market Retraces and Trend Continues … Continue reading

The Nature of Willpower and Its Application to Trading

I recently read this superb article on willpower by Eric Barker, with points from his interview with Dr. Roy Baumeister. I find it very relevant to trading, especially intraday trading. Much of successful trading has to do with having the discipline, the willpower, to follow the trading plan. And much of a good trading plan … Continue reading

ETFs for Intraday and Swing Trading

Came across a webinar which highlighted a number of ETFs which are good (consistent volume, trends, main moves happen during RTH rather than overnight, etc.)  for intraday and swing trading. Listing them down for future reference. ETFs for Intraday Trading TNA / TZA – 3x Russell 2000 EDC / EDZ – 3x Emerging Markets (avoid … Continue reading

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