So let’s have some fun folks! “You take the blue pill, the story ends. You wake up in your bed and believe whatever you want to believe. You take the red pill, you stay in Wonderland, and I show you how deep the rabbit hole goes.” I’m sure most people are either familiar with the movie The Matrix or have heard the above quote. It’s an interesting premise I think. Let’s have a discussion and see how we can relate this to trading! To start with, I will just be open about my own personal frame of reference for all
I have found some really great free podcasts. I have included the RSS feed links. You can copy the link into many media players and you will get a list of tracks and can play them. (Works well in the free VLC) Free ones: Michael Covel Michael wrote the book ‘Trend Following’ as well as many others has a great free podcast Trend Following. Click the cover below for Amazon Click link below for The Book Depository Book Depository Link Michael can be abrasive and blunt at times but I do enjoy his podcast which 50% of the
My first introduction into trading was by way of covered calls. Covered calls are an income strategy and typically promise a 2% or so return per month. This strategy involves buying a share (or even a CFD) and selling a call against it. Variations of this strategy include buying an option ITM and selling an option OTM at a higher strike both with the same expiry. Covered calls CAN work quite well in a market that is rising or going sideways but can present problems if a market is declining. In addition to buying stock and selling a call, some
One of the things that is most indicative of whether or not you will be a successful trader is having a trading plan or not. Having a plan will enable you not trade emotionally but systematically like a machine. A trading plan will answer these questions: How much time do you wish to devote to trading? What returns are you expecting? How much capital do you have to invest? What markets will you trade? How will you deal with a string of (20+) losses? How much will you risk per trade? How will you set your stop-loss orders? What will
Nassim Nicholas Taleb has written a series of books about risk, randomness, chance. I found it quite hard to start reading his books but then something would happen and it all just seemed to ‘click’. He is one of the most insightful authors I have read. Highly recommended. Click cover for the 4 book pack at Amazon Click below for The Book Depository Book Depository Link The individual titles, Fooled by Randomness, The Black Swan, Antifragile and The Bed of Procrustes are also available. Note sometimes these books are unavailable or come in different editions etc.