Tag: Guest Bloggers

Me Centered or Stock Centered?

Posted on by The INO.com Team

By: Chris Irvin, Veteran Instructor & Trader at The Wizard

My last blog (May 9, 2012) spent some time dealing with the logical and emotional sides of the brain and how the flow of information from side to side differs between men and women.  Among other things I suggested that in order for a male trader to be successful they have to have an exit strategy before entering a position because our egos can often get in the way of solid decision making while in the middle of the trade.  I am a firm believer that traders need to define exits prior to entering a position because this is the only time when ego is not an issue in the process.  This idea brought up a valid comment from one reader.  “Wouldn’t it be easier to just put a trailing stop on your position rather than defining a solid stop loss level?”  It probably would be easier, but is it the best?  In this blog I would like to explain why I believe repositioning stop losses manually is a better idea than using trailing stops, if you have the option of course.  If you are a trader that does not have the ability to adjust stop losses manually due to schedule, or circumstance, the trailing stop is a great tool.  If you do have the ability to babysit your trades then I believe it is better to reposition the stops on your own.

Before debating whether manually repositioning stop losses is better than setting an automated trailing stop, I need to point out that even a manual stop loss is really automating your trading process.    The question is “can you be more successful if you use a little of your own elbow grease rather than setting an automated trailing stop?” Continue reading "Me Centered or Stock Centered?" →

Reviewing the Macro 'Play'

Posted on by The INO.com Team

There are signs in the recent jobs and ISM reports that the previously inflated economy is decelerating. Late last week, the clown running JP Morgan said stupid things about the smart [read: talented] people he has running his high risk trading operations. Europe is of course front and center as it continues to fall apart, with Gilts and Bunds rising on ‘safe haven’ buying and the bonds (debt) of Greece and other Euro basket cases declining toward their value, which is less than zero.

The precious metals appear to be watching for signs of outwardly promoted QE policy. But NFTRH has remained cautious on the timing of this pending a crack in the US stock market, so let’s review the big index. Continue reading "Reviewing the Macro 'Play'" →

The Dollar and Manipulation Control the Market

Posted on by The INO.com Team

Over the weekend I had an interesting conversation with a local trader. We typically meet a few times a year to share our market outlooks, new trading tools and techniques, and usually finish our session off in a debate about the US market manipulation and how to trade around it.

Talking about market manipulation always opens up a can of worms and sparks some interesting theories… And while everyone has their own views and opinion on this subject I thought I would briefly share the main points I pulled from our conversation.

I did talk about the dollar index last week, but the recent price action unfolding today is important so I’m going to recap on it again. Continue reading "The Dollar and Manipulation Control the Market" →

Are Women Better Traders than Men?

Posted on by The INO.com Team

By: Chris Irvin, Veteran Instructor & Trader at The Wizard

The answer may be yes.  How do I know? My wife told me… that’s how.  Actually there is some scientific evidence that may back up this idea.  Now keep in mind that I am about to explain something that is way above my pay grade, but I will do my best.  The brain, in both men and women, is divided up in hemispheres typically known as the left brain and the right brain.  The left brain is the side responsible for logical, sequential and rational thought.  The right brain deals with random, intuitive and creative processes.  There is no difference between the sexes in this regard.  The difference between men and women comes in the link between the two sides.  It is called the Corpus Collosum.   The Corpus Collosum is a thick band of nerves that connects the left and right brain. According to a number of studies, including one by L.S. Allen, MF Richey, YM Chai and RA Gorski, which was published in the December 14th 2011 issue of the Journal of Neurosciences, there are differences in this connection between the sexes.  The study was called “Sex differences in the corpus callosum of the living human being.”  The researchers concluded this: Continue reading "Are Women Better Traders than Men?" →

So Long, US Dollar

Posted on by The INO.com Team

By Marin Katusa, Casey Research

There's a major shift under way, one the US mainstream media has left largely untouched even though it will send the United States into an economic maelstrom and dramatically reduce the country's importance in the world: the demise of the US dollar as the world's reserve currency.

For decades the US dollar has been absolutely dominant in international trade, especially in the oil markets. This role has created immense demand for US dollars, and that international demand constitutes a huge part of the dollar's valuation. Not only did the global-currency role add massive value to the dollar, it also created an almost endless pool of demand for US Treasuries as countries around the world sought to maintain stores of petrodollars. The availability of all this credit, denominated in a dollar supported by nothing less than the entirety of global trade, enabled the American federal government to borrow without limit and spend with abandon. Continue reading "So Long, US Dollar" →