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.

Is That ALL?

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Well, THAT was weak.

This has got to be the only morning in history where I’m disappointed to see the ES down 80 points. I mean, don’t get me wrong; 27 out of 28 positions are bearish. But still, what would have made this easiest would have been a strong bounce up to 4460 and then I would Get The Hell Out of my one long position and enjoy the ride down. As it is now, I actually have to think. The hearty bounce below is already half gone, and there’s still an hour to go even before the opening bell as I’m typing this. Sheesh.

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Chopped Liver

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In recent days, I have been thinking deeply about what I can do to improve my trading. I’m a simple soul, so I like rules or mnemonics that are easy to remember and understand. Thus, I present to you what I hope to be my watchword when it comes to trading: PATE

It is pronounced as two syllables (as in the spreadable comestible) and it stands for Patience, Always Trade Extremes.

The “patience” is obvious. That is, be patient enough to wait for true opportunities. And what opportunities, pray tell, do I mean? Well, EXTREME opportunities. When something is stretched so high (as in my “sure-fire” XLE trade last week) or so low (as with XRT and TSLA this morning) that the risk/reward ratio is terribly appealing. And it’s not just price extremes. It also applies to slam-dunk, killer price patterns (like EFA and EMB).

I’m going to try to burn this into my head and actually live it. Let’s see if it helps! Maybe it’ll help you, too.