Greed and Fear - Daily trading signals based on mathematics and software, no opinion, no emotion, no ego. Now with verified trading results!
  • losing moneyBefore taking a trade, you should have done your analysis. If the analysis shows that the trade has a high probability of being successful, you enter it and see what happens. Now suppose the market moves away and your position is getting worse. No real problem, there is never any guarantee the analysis will work.

  • conditioningWe have all heard of the famous experiment by the Russian physiologist Ivan Pavlov where dogs have been conditioned to expect food following a particular event. The Pavlov dogs have experienced the same sequence of events so often, at some point they know what's coming next without really thinking about it. They start to show emotions 'in advance', and salivate even before their food is served. This is one form of conditioning.

  • 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.

  • 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.

  • electronic quote boardSometimes, the most simple and basic ideas can lead to better performance in trading. As we know, trading is a lot about having rules and obeying them. Maybe, when those rules are complex or can be bent, it's more likely that they will be broken. A simple rule has, therefore a good chance of being applied in a very rigid and disciplined way. In this article, I will share a very basic and easy rule that I use and have used for quite some time now. I call it the One-Trade-Per-Day rule. As you can guess from the name, that doesn't sound like a very ingenious idea. And it isn't, but it works.

  • confidenceIn this article, I would like to discuss the subject of overconfidence. Maybe in some way overconfidence can be looked at as the exact opposite of perfectionism. Neither emotions serve a trader well as they do not take the market (movement) for what it really is.

  • perfectionismSome say in trading the true character of a person comes forward with all its strengths and weaknesses. Suppose a trader has a tendency to be perfect, to perform each and every little task in perfection. For people with perfectionism, it may not be that hard to function in everyday life, maybe with a little struggle here and there. But it's very hard to combine perfectionism with trading.

  • memory laneBeing a short term trader, it's sometimes easy to forget about the larger picture. One could argue that short term traders couldn't care less about the larger picture or the long term view, but that's actually not the case. Trading is a game of chances, and as a trader, you make the trades that are likely to be successful. But it is also obvious that even trades that seem very likely to be successful can fail multiple times in a row.

  • resultsStarting in 2017, it was time to take performance measurement to the next level. Instead of measuring index points that were 'predicted correctly', from now on it will be about actual and verified trading results. These results were achieved by autotrading using one or more autotrading platforms. If you want the same trading result, jump right into becoming an investor to the Greed and Fear portfolio.

  • resultsLast year, a start was made with verified actual trading results and I will continue doing this moving forward. The result is based on trading only 1 E-mini S&P future with a (minimum) $10.000,- base amount. This is the Greed and Fear model portfolio.

  • resultsIn 2017, a start was made with verified actual trading results, all through a difficult but still profitable 2018. Now we continue doing so for the year 2019. The result is based on trading only 1 E-mini S&P future with a (minimum) $10.000,- base amount. This is the Greed and Fear model portfolio.With the accumulated profits, the value of this portfolio stands at $17185,50 at the start of 2019.

  • 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".

  • no losing tradesIf you have a losing trade that was stopped out, and maybe a string of losing trades, this might upset and frustrate you as a trader. You start to wonder how you ended up on the wrong side of the market each and every time.