Ideas from books, articles & podcasts.
Vanity is excessive pride in or admiration of one’s own abilities, appearance, or achievements. There is a fine line between vanity and ego. Ego is a person’s sense of self-esteem or self-importance.
Vanity may be the devil’s favorite sin, but ego can be a trader's (or investor’s) worst nightmare.
Ego gets in the way of rational, logical, and reasonable conclusions because fear and greed can tug on our egos and cause us to make mistakes.
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Eliminating ego from all investment and trading decisions starts with ignoring the news, experts, and any inputs other than the herd behavior in markets.
Prices rise & fall to levels that many believe are not sustainable, following trends allows you to take advantage of the...
Following trends requires a special skill, which is no skill at all. Ignore expert advice, the news, and any other exogenous forces. The only tool necessary is a simple chart that displays the path of least resistance of the price.
The process is entirely objective, ...
Shorting an asset has the same ego dynamics. The market can take prices to levels on the up and downside that defy logic, reason, and rational analysis. There are many instances where prices rise to levels that make no sense.
Selling short and ignoring the power of the trend is dangerous an...
On April 20, 2020, in the crude oil futures, came to 0$. Who wouldn’t want to buy crude oil at zero? After all, what is the risk?
As the history shows, a purchase of the expiring futures contract at zero looked more than ugly at negative $40 per barrel, the April 20, 2020 low.
Human nature is a powerful force, but it deludes us to believe our gut instincts. When the price of an asset falls to a level where an investor or trader believes is a logical, reasonable, and rational low, they perceive the price as a bargain.
After an initial purchase, if the price contin...
The annual chart of wood price has never traded over $493.50 per 1,000 board (1993 ATH) before 2017.
After falling to a low of $251.50 in early 2020 as the global pandemic gripped markets across all asset classes, the price took off on the u...
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HEIKIN - Average, ASHI - Pace
Heikin Ashi pattern represents the average pace of the prices. These patterns are useful for getting an idea of the price trend.
OMV is the price an asset would get in the marketplace, or the value the investment community gives to particular equity or business.
Market value is also used to refer to the market capitalization of a publicly-traded company. It is calculated by multiplying the number of...
Many companies use the insights of financial managers and external consultants to manage their risk. A one-size-fits-all solution is not yet in existence when it comes to risk management.
These companies usually use derivatives like forwards, options, swaps and futures
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