Larry Levin's Blog (68)

Secret Trading Tip #27

Coming Back from a Loss

A friend of mine in the pit had been having a rough time lately when he asked me a typical question among us traders - How do I come back from a loss? Since he had been having a "rough patch" and not just one bad trade, I gave him the following advice that is to be used over a period of time.

First I asked him, "What does your trading journal look like - or maybe you don’t have one?"

He didn’t think it…

Secret Trading Tip #27

Coming Back from a Loss

A friend of mine in the pit had been having a rough time lately when he asked me a typical question among us traders - How do I come back from a loss? Since he had been having a "rough patch" and not just one bad trade, I gave him the following advice that is to be used over a period of time.

First I asked him, "What does your trading journal look like - or maybe you don’t have one?"

He didn’t think it…

Trillion Dollar Pay Day Loan

payday_loans

Referring to the constant rumors of a Portuguese bailout last year in Europe, Jean-Claude Juncker, the prime minister of Luxembourg, said “When it becomes serious, you have to lie.” 

For weeks the Eurozone ministers lied to the public about the behind-the-scenes bailout that they were working on.  But here in the US the politicians aren’t lying about the next “crisis” and what to do about it, which is the debt…

Secret Trading Tip #18

Using the Doji

On a candlestick chart, there is a pattern that technicians refer to as a doji. A doji has top and bottom shadows like a regular candlestick, but has practically no real body. This happens when the opening and closing price are the same, or so close that they just leave a sliver of a real body. A doji looks like a plus sign or cross.

Finding a Doji can tell a technical analyst key things about a market trend

Doji…

Slam

smashed-car

At the end of my last newsletter I said, “In the end, the markets recouped all of their losses thereby giving the microcephalic clown-posse in D.C. another reason to argue like children rather than working on their sickening spending problem.”

At the close of Friday’s market a friend of mine asked “Why would the market fall so hard and so quickly?”  This question reminded me of the Thursday rally into the close and the aforementioned quote,…

Secret Trading Tip #7

Five Ways to Stay Focused In Scary Markets

In the fallout from the 2008 global financial crisis, there have been moments that have been driven by pure fear. These are the moments when it can be hard to maintain your composure and trade your plan. Unfortunately, these big days are the times when you need that composure the most. Here is a quick lesson in why it is important to keep focused in a scary market and how to achieve that…

Merry Cliffmas

boy-disappointed-with-gift

 With Friday’s down market, the reality has sunk it that it may very well be left to Santa to find a few trillion in spending cuts. Volume was high with triple witching expiration, but the markets headed south after Boehner’s failed plan B Thursday night and then Congress’ departure for the holiday.

They will return on December 27th but this means that they have four days after the Christmas…

Secret Trading Tip #30

Advanced Technical Indicators - Bollinger Bands

Let's take another look at a more advanced technical tool - Bollinger Bands. These were developed by John Bollinger in the 1980s. In simple terms, they use a simple moving average and standard deviations to give a different perspective on potential highs and lows.

Bollinger Bands have a middle band and two outer bands.

The middle band shown on this indicator is a moving average,…

No Deal

argument-cartoon



After the markets had closed last Friday, reports surfaced that House Speaker John Boehner went to the White House for a special meeting with president Obama.  Would a “fiscal cliff” deal be reached as Congress left for its Christmas break?



Over the weekend Congressional aides told reporters of the weekend meetings and what was said.  Mr. Boehner once again inched closer to what…

Secret Trading Tip #22

What is day trading?



Day trading is probably one of the most misunderstood labels in the industry. Some people might picture a random trader acting like a cowboy just buying and selling with pure abandon. Others might imagine a seasoned vet pouring over charts and analysis, looking for a chance to try to scoop up a few points here or there. Let’s set the record straight on what day trading does…

Worm in the Apple

apple worm

The financial wheel of misfortune landed on the Apple stock space Friday, even though the broad market ended up okay. Has the once sacred AAPL suddenly become the forbidden fruit?

After flirting with a closely watched area on the charts that analysts refer to as the "death cross," APPL has fallen from the tree as the stock's 50 day moving average is now below its 200 day moving average, and is off more than 23…

Secret Trading Tip #17

Good News and Bad News



One of the biggest moments for the markets can come when there is a key news release or fresh fundamental data. Buyers and sellers seem to wrestle with the potential outcome, and in the case of larger announcements, volatility goes through the roof. The problem that I see some traders struggle with is knowing what news to look for, and how to trade it.…

We're Nowhere

boehner

Over the weekend talk continued on the fiscal cliff negotiations. The Sunday political programs, like “This Week” led with it.

The best part of the prior video is the end when we’re reminded that Tax-Cheatin-Timmy will no longer be Treasury Secretary in 2013.

Last Friday, Speaker Boehner held another press conference in which he said about the…

Enforcer Tuesday

tuesday

From black Friday to cyber Monday to enforcer Tuesday, today’s news moves from the shopping mall to the regulatory milieu.

First, SAC Capital Advisors LP fund manager Mathew Martoma was released on $5 million bail on Monday after making his first appearance in a New York court on charges of making illegal trades that hedge fund titan Steven A. Cohen personally signed off on. Martoma was…

Cliff Rally

sales_negotiation

The market had quite a rally last week – didn’t it?  It actually started the prior Friday on the 16th of November, near 1340.00 in the ES. 

What happened?  John Boehner held a press conference about the “fiscal cliff” negotiations in which he suggested that said negotiations were going well.  Naturally, Fraud Street took this to mean that the massive deficit-can would be kicked into next…

Two Martini Lunch

There’s nothing like a lunchtime speech from Ben Bernanke to make you want to head straight to the bar.

Speaking in front of the Economic Club of New York, Ben seemed downright depressed about the economic morass he has of course helped to create. His hopium seemed all but gone, claiming that he can no longer fix the problem that is the U.S. economy. Like the kid on a playground shouting, “NOT IT”, Ben took…

Sandy?

sandy

 Other than last Thursday’s mini-deluge of economic data, the week’s news was sparse.  Friday was no exception with just one report: Industrial Production.

Economists had expected the report to read 78.4% but it was only 77.8%.  Did economists, analysts, and reporters blame the miss on a weaker Europe (which is in recession), a weaker global economy, or even a weaker US?  No, they immediately blamed it on hurricane Sandy.  Or was it Sandy from…

Secret Trading Tip #29

Advanced Technicals – Moving Averages

In Tip #14, I talked about some of the basics for technical analysis. Trends and simple chart patterns are just the tip of the iceberg for technical analysis tools. There are many advanced tools that technicians use to try to find signals in the market price. One of the terms you might hear quite often is moving…

Blah, Blah, Blah

blah

 The market temporarily stabilized on Friday after a little bit of decent economic data as consumer sentiment rose to its highest level in more than five years. The Thompson Reuters/University of Michigan on consumer sentiment came in at 84.9, up from 82.

 Why said consumer is suddenly optimistic, I have absolutely no idea. Generally, most economic data remains mixed at best, but even data…

Secret Trading Tip #28

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Know Your Limits

One thing that I see that catches traders up all the time is knowing their limits. There are times when it is probably wiser to step away from a trade or not trade at all.

Sometimes the best favor you can do for yourself is to take a break.

It doesn't matter who you are or what kind of…