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.

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.


The Devil’s Way (by Heavenskrow Investments)

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Sorry for being away most of last week…. but I was content with the 60% move in TVIX and there wasn't much of a good trade set up after taking profits on Tuesday….But next week should be very interesting for swing traders like myself….

I have come to notice that the markets turn when most of the traders I know online, capitulate. When everyone in the trading sphere think a huge crash is coming, markets spike. When markets take off and leave all the bears capitulating, the markets again come back with a vengeance. What has helped me overcome this charade is to consistently think to myself, "what if I am wrong?" "I don't know anything" "Could the bulls be right?" "Could the bears be right?" "What is the market going to do to make the most people lost the most amount of money possible?"

And that is why I always present the bullish and bearish cases…and possible trades to act upon once the markets choose to go whichever direction it wants.  Also over this year, I have switched to trading strictly ETFs to avoid unsystematic risk from individual stocks.