Archive
Category: Trading 101
- September 12, 2010Managed Futures Describes an Instrument, Not the Strategy. It’s Trend Following
Wall Street types love to call trend following trading ‘managed futures’. That makes no sense. Futures are an instrument, NOT a strategy. The largest so-called managed futures firms are trend followers. If…
- March 23, 2010Silly Rabbit, Trix Are for Kids
A question posted recently here on my blog: “What value do individual traders provide society with? I can understand that fund managers earn fees by helping clients earn profits. But what about…
- May 18, 2009Paul Tudor Jones II on the “Tape”
Paul Tudor Jones thinks smartly. An example: When trading macro, you never have a complete information set or information edge the way analysts can have when trading individual securities. It’s a hell…
- April 24, 2008Peter Borish: Prenuptial Agreement with the Market
At the panel I moderated today in Paris Peter Borish put the concept of a stop loss into terms everyone can grasp. He called it a “prenuptial” with the market. You have…
- April 19, 2008Jesse Livermore: Trend Following Legend and Reminiscences of a Stock Operator
Jesse Livermore Books: • How to Trade in Stocks (PDF) • Reminiscences of a Stock Operator (PDF)
- April 6, 2008Wisdom from 1974: Donchian Student
Barbara Dixon, a student of master trend follower Richard Donchian, writes in 1974: Technical Analysis is based on market action, or price. The theory derives from basic economics. The price of a…
- March 14, 2008Bear Stearns: The Price Didn’t Lie About Direction
The Bear Stearns chart shows that the “price” was indicating a problem long before the death spiral: More on big events.