Market Curiosity: Exploring Markets And Systems

January 5, 2011

How I trade (updated Sep 2013)

Filed under: Editorials — Jeff Fitzmyers @ 2:07 pm

(See updates to posts via Twitter.)

Trading is awesome! … The benefits that trading brings to anyone who sticks with it are vast. They spill over into and enrich all aspects of our lives, in a myriad of ways extending far beyond the obvious financial rewards. And it’s never too late or too early to start learning this fascinating and empowering art. — Adam Hamilton: Trading for Everyone

However, the vast majority lose money because they don’t use enough of these keys:
+ Psychology — The alpha and omega.
+ Chart Key — Elements of the charts shown here defined. KISS.
+ Position sizing “90% of the performance variation of professional traders is due to position sizing strategies.” — Van Tharp
+ Exits — Focusing here pays off much more than studying entries.
+ Timing and trade set ups
+ Momentum stocks, aka: momo’s, aka: IBD Top 50 Stocks — Most long swing trades come from this list.
+ Profit with Dividend Dominator and value stocks by selling options.
+ Response to those who suggest people can’t make money trading. Lots of examples.
+ Timber — The ideal crisis-proof investment.
+ IBD Bounty — Ride monetary inflation by constantly being long the best stocks.
+ SYLD and FYLD – Should rise about 16% per year.
+ USCI – Steve Sjuggerud, “…over the last 20 years, this fund has increased about 1,400 percent, which is about 15 percent a year, and the CRB is up around five percent a year, I think 150 percent in total. So it dramatically outperforms with less volatility, and you don’t have all of these problems that the average commodity fund has…”

I like:
+ Dan Zanger’s trading style.
+ Trader Vic II: Principles of Professional Speculation. I like how he draws trend lines best.
+ Raymond Merriman financial astrology. Publishes accurate market turns in a yearly book and offers a free weekly blurb.
+ Richard Maybury’s newsletter is excellent for understanding what is going on in the political and economic world.
+ Interactive Brokers (IBKR) is very flexible (Mac, PC) with low costs (review). The base currency can easily be changed.
+ Investor/RT charting software is excellent (Mac, PC). They have fantastic customer service. My favorite program. Secrets of Success for New Investor/RT Users

… because the best participants are not motivated by money, they’re motivated by the drive to be the best, or by the joy of trading, or by the desire to work on themselves. — Van Tharp

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