Slope of Hope Blog Posts

Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.

Beaten

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Cough CLICK! Cough. Thanks.

Well, this is a market that has gone from free-falling (August, September) to unbreakable (October 2nd to the present). If there is good news, the market vaults skyward. If there is bad news, the market might be soft for a few hours, but then it will either dismiss the news or assess it through a more positive lens. The market wants to go up, and it is doing so.

The title of this post is "Beaten" not because I am in such a state – – hope springs eternal in the bearish breast! – – but because this market has made a lot of progress beating the bear out of me. That is a dangerous thing, because the market likewise did a sensational job torturing the bear out of me for the entire year through July, which resulted in capturing only a fraction of the long-awaited drop we enjoyed all-too-briefly this summer.

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Which Type Trader Are You? (by Market Sniper)

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This post may offend many and that is not its intention. This is a think piece I have been formulating in my mind for quite some time now.  Its purpose is to get you to think about your trading methodology(s) and setups in a critical light.

To my way of thinking, traders who utilize technical analysis all fall into three broad groups (traders who use purely fundamental analysis are excluded from this type of grouping).

The Prognosticator

In this group I include Elliot Wave traders, Gann traders and astrological traders. These traders trade in the future. Based on what they say may happen and some go as far as to say what WILL happen. When a trade is a failure, they use misinterpretation of past price action as the excuse for the failed trade. It seems that Elliot wave traders (mostly sellers of the system) are in a constant civil war as to "correct" interpretation. Gann followers can spend their entire trading life searching for his "missing" piece. A lot of legend has been created around WD Gann, promulgated by promoters of his methodology. WD Gann was prolific in his writings and covered a multitude of areas. Regardless of what happens next, some part of his work can be given credit for "calling" the "move." Too bad we lack foresight to know which one! He is also been credited to have died with a tidy fortune due to his trading. Interviews with his son (who happened to have been in the banking business) revealed that he died in modest means and made the bulk of his money promoting his ideas over his life time. The foremost (and longest being tracked) in the astrological trading group is Arch Crawford. In over 25 years of his trading service, he has had flashes of brilliance. However, according to Hulbert, his record, overall, has well under performed the market during the long period tracked. Prognosticators rely on interpretation of price. So much for the prognosticators.

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Your Trading Journal (Market Sniper)

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In the past few days there has been a lot of discussion on The Slope about keeping a trading journal. Here is a very brief examination of the subject. I hope it helps!

I cannot over stress how important it is that the trader maintain a constantly up to date trading journal. Yet most traders do not even have one! A trading journal is NOT just a compilation of entry, exit and net profit or loss for each trade. That is what is in your brokerage statements . Of course, you should also include that information. There are many things that can go into your trading journal and each trader will do it differently. Here are just some ideas of what can be included and they are by no means exhaustive, far from it. Nobody but you will ever see your entries in your journal. Be brutally frank.  Use your journal as a vehicle for improving your trading. Here are just a few ideas to get you started.

  • – Did I follow my trading plan for the trade? If not, why not.
  • - At what point in the trade did I doubt the trade.  If so, why
  • - What  did I do right in the trade
  • - Where did I stumble in the trade?

 When  you make an error, make a statement of correction. An example: I did not honor my stop in the trade according to my trading plan. I moved it NOT according to plan…therefore, in my next trade,  I will adhere to my trading plan as to stops. I will place stops and manage my stops according to my trading plan. This will demonstrate that I am a patient and disciplined professional trader.

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Trade Like a Patriot (by phantomcapital)

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Trading is financial war.  Losses are casualties, profits are territory conquered.  An innumerable amount of trading lessons can be drawn from the study of military victories; however one specific war applies best to the individual trader:  The Revolutionary War.

On April 18th, 1775 a disjoined group of local militia fired the first shots at Lexington against the greatest military force the world had ever seen and changed history forever.  However, it is how the Colonials won the war that provides a cardinal lesson for the individual trader.  Very simply we, the individual trader, are the Colonials waging war against the financial superpowers of our time consisting of the Fed, the ECB, and corrupt investment banks.  It is an honorable fight, but a battle that must be waged correctly.

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Developing Moneyball Trading Goals (by Ryan Mallory)

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When you are in a trade, regardless if it is going in your favor or not, ask yourself this question: Are you in it for this trade only or are you in it for what your portfolio will be worth at the end of the year?

In my previous post, entitled, "Finding the Stock Market's Moneyball", I talked about how Oakland A's manager Billy Beane started from the top goal that he had for the season and worked his way down.

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