Author Archives: Harvey

evilmachine

Evil Machines Are Taking Over The Markets

…or not. Lot’s of questions coming my way about the discussions in the media surrounding machine trading. Most are asking if I think that machine trading is the monster that it’s being made out to be, and if it’s killing the markets for regular day traders like us.

My own feeling that as long as real people account for the majority of the volume being traded each day, even if only a very tiny majority, then nothing has changed for us.

News outlets and people who have space to fill in magazines, newspapers, and television shows, like to try and find a new bogeyman to blame for the financial woes in the world. The “computers are taking over the markets” argument often comes up when markets start falling dramatically. But computers aren’t driving the direction, the micro trades they make are simply following the price, they’re not making it. They might exaggerate price swings to some minor degree, but they aren’t the determining factor. (Incidentally, exaggerated price swings are great news for day traders like us, they make for bigger and easier profits!)

In the meantime, those of us who understand how to read price can continue to profit as we always have done – or even more so while prices are swinging even more than usual.

On a similar theme, shorting has been temporarily banned in some European countries I note. This is of course, a completely ridiculous measure that serves no purpose other than giving the impression that politicians are “doing something”. When you consider than on the other side of any short sale there has to be a buyer, it’s clear why shorting in itself is not responsible for falling markets!

penny-stocks

Penny Stocks Redux

I talked about penny stocks a year or so ago, but it’s a subject I still get emails about every week, all asking basically the same thing: “Do you trade penny stocks, and if not, why not?”
The answer is unequivocally no! I don’t trade penny stocks, and I don’t recommend trading them either.

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Action

Action!

Here are two problems I see faced by many traders and would-be traders: not taking action (procrastination) and taking too much action (over trading). This video delves into the causes of both, as well as discussing solutions.
Plus, a few recent trades…
 

A River of Money

A River of Money

So it’s about that time of year where people start asking me the same questions over and over….“Does your strategy still work?”“Are there any trades to be had in these markets?”… and so on. So here’s a video response, with a few recent trades to show the kind of huge opportunity there is in the market every day.

BTW: I’m trying out a new way of embedding these videos. They’re HTML5 with Flash fallback (so my techie guy says!), which apparently means they should work on iPads as well as regular browsers. I love my iPad, so this is a Good Thing!

Fix Your Trading

Fix Your Trading

Are you consistently profitable? If not, do you know why not? Understanding where you are going wrong is the first step to putting it right.

Fortunately, there are only three things that could be wrong with your trading if you’re not making the kind of profits you want.

In this video, I look at what those three things are, how to find which apply to you, and then how to fix them.

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Time Frames-1

Time Frames

I often talk about day trading almost assuming that everyone else thinks like me – that it’s the safest and most profitable time frame. Of course, there are other time frames to trade in, so in this video I take a look at them, and explain why I usually ignore them!

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Head Stuff

When talking about day trading, it’s very easy to get carried away with details of strategy, technique, and button pressing. But all that stuff is only half the story.

The other half is actually having the discipline to do all the above. It’s what I call “head stuff”, and it’s the subject of this video:

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