Greed and Fear - Daily trading signals based on mathematics and software, no opinion, no emotion, no ego. Now with verified trading results!
  • economyFrustration among traders is very common when they go short on anticipation of bad economic data (or long on good economic data). This is due to the fact that in many cases the market does not always come down on bad economic data, or vice versa does not always rise on good economic data. Bad is good sometimes, and good is bad. Traders are frustrated because the market is not doing what they think it is 'supposed to do'.

  • traffic lanesEvery now and then, you run into a situation in real life that triggers the trading mind and makes you look at the situation from a traders viewpoint.

  • destructionAs some of the regular visitors probably know, I am a great fan of Dr. Brett N. Steenbarger. I remember reading one of his articles where he discussed the problem of being addicted to trading. To illustrate this, he showed a list of questions that was normally used to determine whether someone was addicted to alcohol.

  • egoWe have discussed this issue multiple times before. When you are trading, you have to let go of your ego. This also applies to the kind of news a trader reads or the kind of chat rooms and forums the trader is taking part in. There are websites that always bring bullish news and opinions. There are others which are always bearish. Most often this is not high-quality journalism, but more like someone with a loud voice claiming all sorts of things.

  • complain"Never complain, never explain" - it's a well known quote. Famous people have used it, management gurus have used it, too many to accurately determine who initially came up with it. Let's apply this to trading, because trading is probably the ultimate activity where this quote fits extremely well.

  • diceIt has been mentioned in many posts here and elsewhere: to be successful in trading, you need a completely different mindset than the average person.

  • stock chartIf you use any search engine and type in the phrase "How to become a successful short term trader" or anything similar, you will find roughly 70 million(!) websites that will help you in achieving that goal, or so it seems. While in reality, there's only one right and honest answer which is more like this: "There is an extremely low probability you will ever be successful in short term trading, and you will most likely lose all funds in your account".

  • electronic quote boardOften times, traders feel that the market is full of opponents called 'they'. Traders have the feeling that 'they' (these opponents) are out there to get them. 'They' are pushing the market higher after which 'they' will let it drop. 'They' will hit your stop loss and then 'they' will steal your money. Usually 'they' are the banks, the big funds that can really move the markets. In other words: The Evil. And what 'they' are trying to do is always so obvious, it's almost a crime.

  • neighbor thinking.... that you are thinking that he is thinking? This is the funny paradox that is a big factor in the financial markets. In 'A mathematician plays the stock market' by John Allen Paulos (it's in my bookstore), the author analyzes where this is going and what it means.