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This is sticky stuff especially with hundreds of trades a year. The letter from the IRS, a year and a half later from the tax year in question, can strike fear in the hearts of traders ...

If you are talking about choppiness in "short term" pricing, it is all part of the randomness and chaotic nature that exists. By the time the "trend" has switched ( and you won't know it ), you may have engaged in 2 - 3 losing trades that wipe out those hard fought gains that you previously...

Jim Cramer has a colorful history. We can figure that he's made millions from "The Street", "Mad Money", and as an author. Prior to that, as a hedge fund manager, if he "kept his head above water" ( made enough profit above the 2/20 fee structure for a few years ) or made some leveraged bets...

Those systems are "black box" affairs. As the systems on C2 operate in opacity, you will never know what the logic is behind them. Even if they have a decent growth curve, it's difficult and abstract to invest under that uncertainty. If they entail a lot of transactions and a high monthly or...

You can see the various displays of technical indicators within a timeline from 2004 - 2009 from one of the most popular financial blogs https://docs.google.com/document/d/1w63xKeR9ADE52a7PPwSjRILsxLVkanJsYL_Bz7BPb0k/edit?usp=sharing . One can put up a myriad of information without any...

Good to clear that up .. the combination of: 1) fear of loss ( loss of capital that you "care" about ) and 2) uncertainty ( the strategy needs to produce strong enough & consistent enough statistical outcomes in order to instill enough confidence to override uncertainty ( or overconfidence /...

Examine your use of the words and phrases "feel" and "seems to have" and "not sure". As one of my financial planner mentors asks " Do you have a strategy" ? Is the strategy empirically derived and based on a probabilistic framework ( have the outcomes repeated over a long test sample / what...

I used to trade many markets in the late 80's + 90's. I occasionally used leverage. Didn't have instant real time charts and hand plotted information. I guessed a lot. I eventually discovered that: 1) the U.S. equity markets have an advantage or edge in that the underlying long term trend...

Taxes ... Yet another, rarely mentioned, time consuming and expense bite ( using a tax preparer for a yearly $400 bucks and up ) that trading requires. Not to mention the occassional letter that you can receive from the IRS a year later, if you prepare them yourself and make a mistake ... One...

Which markets are you trading? Are you trading off of chart patterns? Are you day trading / short term trading ? Are you using leverage? Are you using money that is living expense money or "house" money ? Do you get enough exercise ? Do you meditate ? Do you have a day job ?

It's interesting that a whole cottage industry has spawned quant outfits * and products that are generating programs to disseminate an edge from "randomness" ( of short term price movements in the "markets" ). It's a catch 22. If the signals are based on random information and are keying off of...

The shorter the trading / analysis period, the closer towards 50/50 ( random ) that you get. Keying ( equity ) investment positions and analysis off of the U.S. credit / economic cycle ( long term ) shifts the odds towards more "favorable".

It's because basing decisions on the short term doesn't pan out. Short term price action is "random" in nature; with large funds scaling in and out, HFT trading price discrepancies, "headline" gyrations, etc. People "burn out" as trading requires such intense focus and, in and majority of...

How can you backtest something that is based on subjectivity ? http://www.psyfitec.com/2010/12/technical-analysis-on-display.html

Old trading adage ... don't quit your day job ...

The S&P500 is the standard benchmark in the financial industry. Small cap value * has been academically proven to produce highest decile alpha premium of all stock universes over 90 years https://docs.google.com/document/d/1kToqLWLISRk4n4YnSzv1hT5kBN54l5CvhwGgDwJKPJI/edit?usp=sharing...

Good revelation NXT7. There is a perception that a backtesting package can provide an "answer", when it basically is a database machine that can produce correlative results through "trading rules" performed on data that has occurred in the past. Kensho is famous for this. An informative podcast...

Just don't quit your day job ( because you think that you can be a trader )

Invest in markets that have provided a statistical "edge". The U.S. equities markets are supported by good policy, monetary stability, consistent economic growth and incentives to reward shareholders. Ir has risen 60+% of the time and 30+% of the time.

Who is "everyone else" ?