Archive | May, 2011

Market Psychology Tests

31 May

Here are a few simple market psychology tests you can take to get a better understanding of your strengths and weaknesses in trading.

I recommend the Success Psychology Test and Financial Values Questionnaire first as these two surveys will help you discover where you are at on the path to financial success.

Trading in the Zone is a great book that will improve your trading psychology.

Here is some more insight to the psychology of trading.

How to Become a Successful Trader

24 May

Hubert Senters talks about how to become a successful trader.

The Disciplined Trader is a great book that addresses in great detail the aspects of psychology in trading.

Live Trading Videos

15 May

For more live trading videos you can subscribe to our YouTube channel.

TJMacTrading Youtube Channel

 

Fight of the Century: Keynes vs. Hayek Roud Two

13 May

All Signs Lead Higher

11 May

As talked about in the April 28th post we are targeting 1390s on the S&P500. You can see that we’ve pulled back once again halfway back and the old resistance has acted as new support.

ES 1390 Target

Option max pain for the SPY is 134 as of May 10 (prior highs) so we have a clear line in the sand if we should fail out of our move higher.

Option Max Pain 134

 

Day Trading with Pivot Points

5 May

The pivot point for the day is calculated by taking the prior day’s (High + Low + Close) / 3. These are commonly used by floor traders in the trading pits to identify key support and resistance levels.

If the market opens above the daily pivot, look for short entries for a move down to test the pivot and vice versa. If the pivot isn’t tested in the morning session, then look for it to test in the afternoon.

  • Daily pivot levels R3/S3 will contain the market 90 percent of the time.
  • Take note of Weekly and Monthly pivots

Identifying The Types of Market Conditions

Trending Day – Market moves to pivot, consolidates and continues

  • Wait for move thru pivot level, buy first pullback to pivot level (for longs)

Choppy Day – Also known as a range bound day. Market moves to pivot, consolidates and reverses