Wait for an "optimum" time, not just an "OK" time to place a trade
By Richard L. Muehlberg*
Posted: Nov 21, 2008
History. Money. Cold blood. Ethics. This article touches on all four.
Fed Chairman Ben Bernanke has one main job: Support the U.S. economy. If a weaker U.S. dollar is good, or at least acceptable, for the economy, his job is to force or allow the dollar to weaken. If a stronger dollar is good, or at least acceptable, his job is to force or allow the dollar to strengthen. On Tuesday, June 3, 2008, Bernanke gave a policy speech in support of a stronger dollar as a way to slow U.S. inflation. One way to protect a currency is to raise domestic interest rates. This raises the rate of return on the currency: A measure of a currency’s desirability. The moment Bernanke spoke in support of the dollar, market participants aggressively bought the dollar and sold the euro (the currency of the European Union). They also sold crude oil. Crude oil is priced in dollars.
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Hunter Instinct: Day Trading in Cold (Not Hot) Blood
Trade Psychology: The Act of Self Recognition (Chapter Eight: The River Kwai)
By M. William Scheier, a futures trader and analyst in the E-mini Index contracts*
Posted: November 21, 2008
No matter how clever your trade entries are, successful trading is mostly a mental game. This treatise on trade psychology is appearing in a series of installments (and modified for use on this site) and has been excerpted from chapters of the book Pivots, Patterns and Self Recognition. The excerpts appear here by permission of the publisher, valhallafutures.com.
This is the ninth installment in this series, whose purpose is to examine the internal decision environment the trader faces within his mind. On the assumption that a better understanding of the mental conflicts we face will improve our trading results, the three modes of conflict are personified in separate "voices" inside of us. These are the Trader, the Accountant and the Analyst.
Posted: November 21, 2008
No matter how clever your trade entries are, successful trading is mostly a mental game. This treatise on trade psychology is appearing in a series of installments (and modified for use on this site) and has been excerpted from chapters of the book Pivots, Patterns and Self Recognition. The excerpts appear here by permission of the publisher, valhallafutures.com.
This is the ninth installment in this series, whose purpose is to examine the internal decision environment the trader faces within his mind. On the assumption that a better understanding of the mental conflicts we face will improve our trading results, the three modes of conflict are personified in separate "voices" inside of us. These are the Trader, the Accountant and the Analyst.
