Author Archives: Harvey

Brain Hacks For Traders

Hijack Your Mind

Cognitive biases, negative emotions, and other destructive trading behaviours take cover! Brain Hacks For Traders is published.

My new book is available worldwide today, from Amazon, Kobo, Apple’s iBookstore, Google’s Play Store and more. The paperback edition is also available right now from Amazon, and is making its way to bookstores everywhere.

To see the introductory video, and for links to bookstores, check out this page

I’ve always said that trading profitably is 20% about knowing what to do, and 80% about having the self control to do it. Entering trades without hesitation is hard when there’s real money on the line. Exiting at a loss is hard when the demons in your head are urging you to hold on. Sticking with it through periods of drawdown is tough. I’ve always found that traditional trading books don’t discuss these issues, not really. They all concentrate on the easy 20% — the strategy.

That’s why I knew I had to write Brain Hacks For Traders. It’s the trading book I always wished I could read.

I really hope you enjoy the new book.

Brain Hacking

I’m remarkably privileged to have access to a huge number of traders of all levels of experience and profitability through contact with readers of my books, plus students of my previous trading course and mentoring program. Working with such a large cross-section of the trading community was invaluable when it came to developing techniques to subvert the emotions, cognitive biases, and learned behaviours that prevent traders from reaching their true profit potential.

The result of all of this research, testing, and refinement, is a set of tools that I call brain hacks.

Just like a computer hacker gains access to a system and uses it to do his bidding, so my hacks allow us to gain access to our powerful built-in brain functions — deep rooted stuff like fear and greed — and subvert them so that they work for us rather than against us when we trade.

My original plan was to write up these brain hacks as blog posts. I even started to do so, but it got out of hand quickly. There were a lot of hacks, and choosing a handful to write up was impossible. The techniques I developed and refined with my small army of guinea pig volunteers cover the whole spectrum of trading ‘head stuff’. There are methods for combatting the cognitive biases like illusory correlation, apophenia, and social proof (among many more). There are techniques for hijacking the power of learned behaviours such as gambler’s fallacy and the knowledge gap. And there are the big guns, major methods that tap into the fear engine and turn it from being our biggest problem into a major motor for profit. In short, a series of blog posts could never do justice to the fruits of all this research.

Another solution was called for. And as you’ve probably guessed by now, the answer was to put it all into a new book.

It’s called, simply, Brain Hacks For Traders, and I honestly think it’s the most important book I’ve written.

Before I tell you any more, let me just get one thing out of the way. The book, which will be published on Friday, is going to cost money. It’s going to be priced at $4.99. If you think that’s too expensive for years of research that will help you be a more relaxed and more profitable trader, then feel free to stop reading now.

Still with me? Great. Here’s what you need to know about Brain Hacks For Traders. The book will be out this Friday, 30th October. It will be available as an ebook and, for a few dollars more, as a paperback.

If you’ve ever stayed in a losing trade too long, if you’ve ever hesitated over taking an entry, if you’ve ever walked away from the market in frustration because your stops were being hit, or you didn’t find anything to trade, or for just about any other reason, then you need to read this book.

If you are not making the kind of profit you think you should, or that you know your strategy should be capable of, then you need to read this book.

If you’ve ever over-traded, if you’ve ever taken trades that you’ve looked back on and wondered what you were thinking, then you need to read this book.

Brain Hacks For Traders delves deep into why we think and behave the way we do when faced with trading decisions. It explains in detail the cognitive biases that are so deeply embedded in your brain you probably don’t even know they’re there. It exposes the behavioural patterns that are holding you back from your true potential. And more importantly, it shows you deceptively simple and powerful hacks that will let you subvert all of these behaviours and biases and use them to make you a better, more profitable trader.

Naturally, like my earlier works, Brain Hacks For Traders is written in plain English, steering clear of jargon and meaningless buzzwords. It’s an easy — and I hope — fun read. The techniques you’ll learn are things you can start implementing right away.

If you’re impatient, you can pre-order the electronic edition of the book right now at Amazon, Apple iBookstore, and the Google Play store. To see a video introducing the book, take a look here.

Time To Get Smart

Yesterday I talked about cognitive bias and learned behaviour and how they are fighting us when we trade. Our natural aversion to loss can make it hard to run winners and cut losses early. Greed has advantages for the survival of the species, but can be catastrophic when trying to execute a trading strategy profitably. Frustration at having our stops continually hit can make us give up and walk away, and thus miss out on the big winner that more than makes up for the many small losers. In short, our brains are screwing us over.

It’s time to take control.

Have you ever seen those judo experts who take on a challenger about three times their size and somehow manage to throw them through the air as if they were made of cardboard? It’s amazing to watch. I have a friend who is tiny, but who regularly throws around blokes twice her weight. She’s not stronger than them, not even close. Her advantage is her technique and her experience. She studies how her opponents approach, she anticipates their next move, and then she wrong-foots them and uses their own strength and momentum to hurl them over her head.

Using your adversary’s strength is smart. The stronger the enemy, the harder they fall when you wrong-foot them.

This is how we overcome millennia of evolution. We’re no more able to erase our mental programming and carve out new neural pathways than my friend is able to become twice her height. Instead, we let that programming do exactly what it’s trying to do, and then step in and wrong-foot it at the crucial moment.

Here’s an example. One of our built-in cognitive biases is called optimism bias. Very briefly, optimism bias works a bit like an email spam filter for our brain. It sieves information and removes anything it thinks we don’t want to know. Bad stuff. Stuff like “this trade isn’t working out the way it should.” This bias can be so strong it can cause us to physically not see exit signals on a chart. Sounds crazy, but it really happens.

How do you overpower something that you can’t even see? You don’t. You wrong-foot it and use its strength against it. Overcoming optimism bias is ridiculously simple when you know how: you flip your chart upside-down.

Again, sounds crazy, yes? Perhaps, but it works. If your upside-down chart says that your trade is working and you should be staying in, then you’ve just used your optimism bias to highlight the true direction of the price rather than hide it.

This trick sounds like it shouldn’t work, after all, you know the chart is upside-down because you turned it yourself. But your cognitive biases work at a lower level than your conscious mind. They’re easy to trick when you know how.

Of course, optimism bias is just one of a whole host of cognitive biases, learned behaviours, and emotions that we have to deal with. But for every bias or emotion that’s standing in the way of profit, there is a way to subvert it.

In my last book, How To Day Trade Forex For Profit, I talked a bit about cognitive biases and some of the tricks to overcome them. Since that book was published in 2012 I’ve gone way deeper into the trading mind. Over the past three and a half years I’ve worked with a vast pool of traders to develop new techniques that don’t just bypass fear, greed, and other destructive emotions, they actively recruit them, brainwash them, and have them do our bidding like a powerful army.

More about that, tomorrow.

Enemy Number One – Yourself

Have you ever tried to give up smoking? It’s easy, right? You just stop putting cigarettes in your mouth. Same goes for losing weight. You eat less junk food and exercise more. Nothing could be simpler.

Yeah, right. If only that were the case. The truth is, knowing what to do and actually doing it are not the same thing. Self control is hard.

Last week I talked about why that is. Evolution has programmed much of our behaviour. It has physically shaped the neural pathways in our brains so that we find certain actions easier than others. Going against this programming is really difficult. Taking a loss, for example, is a hard thing to do. For our ancestors, losing out in the hunt might mean not eating, which could ultimately mean starving to death. Is it any wonder that when we’re caught in a losing trade and we try and exit, a little voice in our head says, “Hang on just a little bit longer, it might come good!” Evolution doesn’t want us to lose.

As I’ve mentioned on more than one occasion, I’m pretty lazy. If there’s a shortcut, I’ll take it. Which is why, when faced with the dilemma of how to overcome the mental hurdles involved in trading profitably, I looked for an easier solution than ‘toughen up’. Like I said, self-control is hard. Little did I know when I started that search more than a decade ago, it would lead me to years of research into human cognition. So much for taking the easy option!

One of the first things I realised when I delved into the inner workings of the mind was that my initial hunch was right. Trying to overcome hundreds of thousands of years of evolution is a losing battle. It’s not even worth trying. It’s safe to assume that for the next few thousand generations at least, taking a loss, or accepting risk, is going to be hard.

The next thing I discovered was that taking a loss is the least of our problems. Evolution has made our trading lives far tougher than I had ever imagined. In fact, buried within our brains is a ton of programming which, while very efficient at keeping us alive, is actively working against us when we trade. Our heads are filled with cognitive biases and heuristics that actually alter our perception of the market.

I’m not kidding. Take one chart and show it to two traders, and they will see different signals on that chart, depending on their current position. Their brains will filter what their eyes see and present it accordingly. We quite literally cannot trust our own eyes!

Sounds bad, doesn’t it? Guess what? It’s worse than that. On top of these cognitive biases, we have a whole bunch of learned behaviours that are messing with our minds. It’s not just evolution we’re battling, it’s everything we’ve ever learnt, every experience we’ve had since the day we were born. They have all shaped the way we think and the way we perceive the world around us…including the markets.

In a strange way, the more I researched how our brains make trading more difficult than it should be, the more comforted I was. That didn’t change the underlying problem though. So my research progressed, and I began to turn problems into solutions.

Today’s post has turned out even longer than last week’s, so I’m going to break here and will write more tomorrow.

Trading Is Easy, Right?

Trading’s easy, right? All you do is get a strategy that wins more often than it loses, or wins bigger than it loses (or preferably both), then you buy when it says buy, and you sell when it says sell. What could be simpler?

Well, quite a lot of things. Because it turns out that following a strategy isn’t as easy as it sounds. Risking money by clicking the buy button means overcoming uncertainty about the outcome. It means burying any fear of loss. The same goes when it comes to exiting. Who hasn’t hung on to a losing position longer than they should in the hope that the trade will turn around and become profitable? And who hasn’t jumped ship early, eager to take profit rather than risk hanging on for a bit more?

Sometimes it seems as though we’d be better off if we could become robotic, devoid of fear and other emotional triggers like greed or self-doubt. Taking necessary losses would be a breeze if we didn’t care. But our humanity and our insight are what allow us to read the nuances of the market. They give us our edge because they make us infinitely adaptable.

So emotion for a trader is a double-edged sword. It helps as much as it hinders. Take away the emotion and we lose our edge. Live with our fear and greed, and we can become paralysed at crucial moments, unable to take a loss or accept a risk.

I firmly believe that this conundrum is the single biggest barrier to success for unprofitable traders. Learning a trading strategy is easy. Overcoming the hurdles inside our heads is hard. It’s a question of self-control, like giving up smoking or dieting.

This ‘head stuff’ is something I’ve spent more than a decade studying. What I’ve discovered is that human beings are hard-wired to fail in the markets.

You see, our brains have been shaped and moulded by hundreds of thousands of years of evolution. Successful trading requires taking actions that directly contradict our mental programming. It’s not our fault, stock and futures markets are a new phenomenon. Evolution hasn’t had time to catch up with modern finance. No doubt in another fifty thousand years or so, our descendants will be highly adept at running winners and cutting losers short without a second thought. That doesn’t help us much today though.

Are we all doomed then? Will those traders who possess a mental fortitude of olympian proportions be the ones to enjoy all the profits, leaving us mere mortals to fight over the scraps as we battle our inner demons of fear and greed?

Actually, no.

It turns out those inner demons can be put to good use. We don’t have to fight a fear of loss when it comes time to buy or sell. We don’t have to be a slave to frustration when would-be good trades go wrong for no apparent reason. We can and we will overcome these challenges.

This post has gone on for long enough though, so I’ll talk more about how next week.

State of The Market

It’s that time again. I’ve been quiet on the blogging and videoing front. When that happens, as predictably as the sun rises in the east, I get emails asking how the market is. The last few weeks have seen a rash of these for some reason, and they all say more or less the same thing: how are you trading now the market is so constrained and stocks aren’t moving like they used to?

Here’s the thing: suggesting that stocks aren’t moving like they used to is, to put it politely, nonsense. Sure, markets as a whole go through periods where there is less activity. You can look at an index like the NASDAQ 100 or the S&P 500 and say that it did nothing all day. But that’s a macro view. Zoom in, look at the individual stocks, and you will absolutely find some that have put in stellar moves during the day, no matter how “flat” the index says the market was.

In all the years I’ve been trading, I’ve yet to see a day when there weren’t at least a handful of stocks that offered up easy trades. Yes, there have been days when I didn’t find them in time, but they have always been there.

So here, in an attempt to make a point, I’ll show you five stocks I traded last Friday (29th May). There’s nothing special about Friday. On the contrary, I have chosen it for its very ordinaryness and the fact that because I’m writing this on Monday morning, it’s the last day I traded, so I don’t have to go further back in my trading log!

Let’s have a look at some charts (clicking on them opens larger versions).

HRTX

HRTX 290515Look at that chart and tell me there aren’t active, trending stocks out there. There’s over four dollars of movement in this chart, and on a stock priced at around just $20, which means it doesn’t require a huge account balance to trade a decent size.

I got in this one at around 17.60, and out again at 18.50 when it started going sideways, taking 90 cents profit per share traded. That’s $900 when trading 1000 shares.

Then, because I was still around, I had another go at lunchtime, getting in again at 19.05. I took half off at 20.00 for 95 cents, and let the other half run on, eventually getting out at 20.50, for 145 cents per share.

Profit on that second trade then, was $475, and $725 for the second half, for a total of $1200.

Remember, that was the second trade. Add in the first, and that means $2,100 profit on just this one stock.

But of course, there wasn’t just one stock to trade…

GILD

GILD 290515At first glance this chart looks less smooth than the previous one, but as anyone who’s read my book will be able to see, there was a classic entry signalled early on in the morning. I got in around $112.70 (I’m rounding up and down a cent or two here to keep things simple), and then was out by $112.40. I’ll be honest, I let this one run too long, I let it come back too far.

Result: 30 cents, or $300 profit on 1000 shares traded.

Guess what? This one gave another entry, too. A lovely double bottom, or reverse head and shoulders. Whatever you want to call it, the change in trend was clearly signalled. So I got in again at $112.60 when it took out its previous high after the double bottom was formed, and I rode that sucker up to $113. Again, book readers will know why. That was a straightforward 40 cents, or $400 on 1000 shares.

If I wasn’t as lazy as I am, and traded the afternoon session as well, I could have ridden it back in the afternoon with the clear signals it gave (break of support anyone?), but I am that lazy guy, and I like spending time with my family.

WFM

WFM 290515The range on this chart isn’t as impressive as HRTX, but they can’t all be mega-winners. The chart itself is a lovely long down trend. You could pretty much short anywhere, hang on, and cover for a profit. Me? I was in at $41.95, then out again at $41.65 for a stress-free 30 cents, or $300 on 1000.

There was another easy trade to be had after lunch at around 41.50 based on support and volume. Using the EMA as an exit signal, I could have ridden that down to 41.10 for an extra 40 cents a share, but I wasn’t in front of the screen then. The point is though, that the trade was there for the taking. Another opportunity in this so-called “constrained” market.

QCOM

QCOM 290515I keep this sucker on my core stocks watchlist, and have done for years. It comes and goes, but when its working nicely, it’s a reliable little performer. Bit of a tip for you there. It doesn’t give me a trade every day, but when the signs are good, it’s a banker.

Friday I was in at 70.20 on a classic entry setup, and out at 70.00 for a quick and simple 20 cents per share, or $200 profit on a 1000 shares, in around 15 minutes or so. You’re never going to get rich on trades like that, but they help plump up the coffers.

AAPL

AAPL 290515I’ve left this until last because Apple is a bit of a beast. It was out of range for most people for a long time, then they did a stock split and the price came back within reach. Now it’s on the upper-end of reasonable again, but if you size your position to take account of that, there’s no reason to miss out. The smaller size you trade is usually offset by the higher profit the trade can generate.

Because Apple is a volatile little so and so, it needs more wiggle room than lesser stocks. However, the patterns still work, and frankly if you’ve got the nerve, you could almost make a full time living trading just Apple (not that I would ever recommend sticking to one stock. Nothing is a dish for every day…)

So, Apple. I was in at 130.95 (classic entry pattern again) and back out of my short at 130.20. 75 cents a share, or $750 on 1000 shares traded.

And what’s this I see? A nice double bottom and a new up trend. That was heading into lunch, and I was busy with other trades, so I left it alone.

Anyone coming back and watching after lunch would surely have spotted the even nicer double top and break of support that happened early afternoon. That led to a nice trade opportunity with a good 40 cents per share profit to be had.

Summary

I’ve waffled on longer than I intended, but there are a few things I want to summarise here.

  • As you hopefully noticed, these charts all offered more than one trade. If you miss a trade, if a trades turns up a loss, or even if you make a brilliantly profitable trade, don’t then write the stock off as being done for the day. Nothing says you can’t have two bites of the cherry.
  • None of these stocks were difficult to find. Two of them were on my core stocks watchlist. The others presented themselves through my pre-market homework.
  • There are always stocks that move like this, every day the market is open. Find these easy setups, and the trades themselves become simple. I’m not going to resort to a cliché like “shooting fish in a barrel”, but you know, it’s heading in that direction.
  • There were undoubtedly plenty more nice trades that passed me by. These are just the ones I caught.
  • Yes, I’ve cherry-picked the winners for this blog post, because the point I’m making isn’t that I’m some wonder-trader (I’m not), it is purely that there are always nice trades to be had. I made two losing trades on Friday, too. And guess what? The total losses from both of them came to less than $100. If you’ve added up the winners in the charts above, you’ll see the profits were $4,150 for the morning (that’s just the trades I took, not counting the later trades that I wasn’t around for). So even taking those couple of losses, I still made more than four grand in a morning. You could cut the size of each trade by four, trading just 250 shares a go, and that’s still more than a thousand dollars profit.

That’s it, I think I’ve rattled on long enough and made my point. In answer to those asking how have you adjusted your trading in this market? the answer is I haven’t. I traded exactly the same way on Friday as the Friday before, as any Friday (or any other day of the week) a year ago, or ten years ago. And when I’ve finished typing this post, and after I’ve done my pre-market homework for the morning, I’ll be trading just the same way today, as well.

Good trading!

learning

The Knowledge Gap

My youngest daughter is nearly two now. She’s at that amazing stage of life where her head is like a Dyson for information, sucking up incredible amounts of knowledge during every waking moment. She constantly surprises and delights us with new words and phrases, and half the time we have no idea where she heard them. (I suspect she has a secret nocturnal life, sneaking out of her bedroom in the wee hours, and meeting up with other toddlers to compare notes. Mrs Walsh does not share this theory).

Almost from the day we are born, we’re taught — or perhaps genetically programmed — to seek out knowledge. In the first hours of life, it’s all about learning where the milk is. Later, it’s about mobility; learning to shuffle around, crawl, and ultimately, to walk. Then comes communication. Listening, understanding, talking, reading, and writing.

It doesn’t stop there. We’re sent to school for years, and then college, and if we so desire, onwards to university. Up to two decades of life in full time education, learning every single day. When we begin working, we continue to learn more and more. Specialised knowledge, perhaps unique to our field of employment.

It is therefore, entirely unsurprising that when we try and accomplish something in life, and find we don’t get the result we desire, that we immediately assume a lack of knowledge is the problem. More often than not, we’re right.

Yesterday, Mrs Walsh decided to bake some cookies. Now Mrs W is an excellent cook, and I aspire to one day be able to rustle up meals of the same quality that she manages apparently effortlessly. Cookies though, are not her strong point. Spotting a gap in her knowledge, she prised the iPad out of our daughter’s hands and looked up a bunch of recipes, filling in the information she was missing. I am pleased to report that this endeavour was a success, and that the resulting cookies were excellent.

There is a point to this illustration of domestic bliss, and that is that the desire to plug the knowledge gap is so deeply embedded into our programming, that we don’t even notice it. And this can be a problem, because sometimes, our lack of results is not due to a gap in our knowledge at all.

Trading is one example of such a situation.  Here’s how most people go about learning to trade (myself included):

1) The decision is made. “I want to be a trader!” we cry with glee.

2) Information is sought (we have a huge knowledge gap, so of course we want to fill it). “I shall read some books! Take courses!” Motivation is high, and our thirst for information is strong. We devour everything we can find on the subject.

3) We try and apply the knowledge we have learnt. “I’m going to make some trades!” We’ve read a ton, and it sounds simple enough. What could go wrong?

4) We lose money.

Okay, step four doesn’t always involve loss from the outset, but in the vast majority of cases, new traders don’t immediately see the kinds of profits they were hoping for when they started out.

It’s at this point that our life long programming kicks in. “I must be missing something,” we think to ourselves, and we try and plug the knowledge gap. We assume some vital piece of information has slipped us by. Did we skip a chapter? We go back and read more, learn more, study different books. Then we try again.

If we still don’t get the results we want, we repeat the process. Perhaps, we ask ourselves, there’s some secret that isn’t shared in the textbooks. Perhaps we can only get this secret from other traders. We delve into forums and websites and chatrooms and seminars. We learn indicators and systems and strategies of ever increasing complexity.

Here’s the thing: by step four, we almost certainly know enough already. A gap in knowledge is rarely the cause of failure to profit. Most people who have studied trading to the point of taking live trades, but who aren’t making the kind of money they want, already have enough facts to turn things around. There’s a critical mass of information required to succeed, and the majority of people who are trying have already reached that mass. Learning more than is necessary only serves to confuse them even more.

Here’s a completely different analogy that I hope will illustrate the problem. Imagine that you needed to build a house. You learn that you must dig a foundation and fill it with concrete; that you’ll then build some walls out of bricks, add a roof structure, and cover it in tiles. That’s one way to build a house, although not the only way. If you’ve never actually built a house before, the chances are your first effort might not be great. The foundations may not be level on the initial attempt. The brickwork might not be very straight or true, and the roof could end up a bit wonky. But your basic knowledge is sufficient to overcome these problems; more practice is what’s missing. Every layer of bricks you lay will give you experience, and each one should get a bit better.What you don’t need, is to learn how to build timber-framed houses, or steel-and-glass construction methods, or how to build with straw bales, or how to put together a skyscraper. There’s nothing wrong with any of these techniques, and knowing them isn’t a problem in itself. But if you’re starting out, and you’re trying to get a roof over your head, adding those different construction methods will only serve to confuse your own build. The added knowledge is superfluous. You may conceivably start mixing techniques, creating a building that’s unsafe for habitation.

So what does this all mean for you? It means that if you’re trading, and you’re not getting the results you want, take a step back and look at the knowledge you already have. Don’t assume there’s a gap in that knowledge. Remember, all you need to know to make good consistent profits are three things: what to trade, when to enter, and when to exit. If you have a basic strategy that covers those three things, you already have all the knowledge that’s required. Anything over and above that is unnecessary added complication. Stick to a simple proven strategy, and keep at it until you make it work.

As a final word on this (because I know I’m going to get emails!), I just want to reiterate that knowledge is a Good Thing. I’m not saying don’t keep learning. We’re always learning, all the time. What I am saying is that a gap in knowledge isn’t always the reason for not getting results. In trading, it’s rarely the reason. A gap in *experience* is usually the culprit. My message is always the same: trading is simple. Keep it that way, and you’ll make good money.

Paperback Edition

Harvey Walsh, Slayer of Trees

I’ve been a lover of ebooks for well over ten years. It seemed perfectly natural to me when I released my Day Trading Freedom course back in 2004, to do so as an electronic product. Later, when the course become the book, again it seemed natural to go with electronic editions – particularly as the Kindle had taken off, iPads were everywhere, and everyone seemed to be reading on mobile phones. Ebooks were definitely in.

However, even a die-hard ebook fan like myself must recognise that some folk simply prefer paper. My wife is one, she won’t read from any kind of screen. And so, due to popular demand, How To Day Trade Stocks For Profit is now out in in a dead-tree paperback edition.

It’s available right now from Amazon.com and most international Amazon stores. It’s also wending its way into bricks and mortar bookstores (although between you and me, Amazon is cheaper).

Of course, all the electronic editions continue to be available and can be read on almost any computer, tablet, phone or ereader out there.

A paperback edition of the forex book will be out soon.

One Morning’s Trades

I kind of stopped making videos for a while. After you’ve seen a few trading videos you’ve seen them all. But I still get emails almost every day asking for more, asking how the markets are, asking if the strategy ‘still works’.

Of course, the ‘strategy’ is based on reading price action through the charts and the tape. It’s based on understanding what the price is telling you about where it wants to go next. Understand price and you can profit in any kind of market – bull or bear, good times or bad.

So anyway, I took a moment to grab some screenshots of the stocks I traded yesterday, and have put them into a video. It’s not a special day, nothing out of the ordinary. Just a regular morning trading high probability trades on stocks that are likely to move on the day. (Apologies for the sound quality, I was a bit rushed and didn’t have time to find a proper microphone).

A Few Simple Trades

I know, it’s been ages since I posted a video. Whenever that happens, like clockwork, I start to get emails asking stuff like “Does your strategy still work?”, “Can you still make money given the recession?”, you get the idea…

The answer is always “Yes”, it still works. It works, because my strategy is not to jump onto some fad or some temporary arbitrage opportunity. No, my strategy is to understand what the price is telling you, to read it, and to trade it. Price is a constant, the one true signal. When you can understand its message, you can make money in any market conditions.

Here’s a video with a few simple trades which I hope will illustrate that even in these difficult economic times, the market continues to offer plenty of profit potential.