trading

Ways To Avoid Losing Money On Trading

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use trading appsTrading is a risky activity that involves gains and losses. And when you want to play in the big leagues of trading, you must develop a tough skin. Winning indeed gives you joy and happiness, and losing will, for sure, put you down. No one likes to lose, so using these six ways, you may just be able to avoid losing altogether.

Know you way around your trading niche

Trading is an ocean of opportunities just waiting for you to seize what fits you best. There are so many types of trading, some examples being copy-trading, CFD, and forex, to mention a few. And of all the classes, which one appealed to you most? Continue reading →

JP Morgan Launches New High Frequency Trading Algorithm

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tradingJoseph P Farrell – The disconnect between genuine human market activity and that created by machines proceeds apace, for JP Morgan has just launched a new algorithmic high frequency trading algorithm, as this article from Zero Hedge, spotted and shared by Mr. B.H., states:

JPM Develops A.I. Robot To Execute High Speed Trades, Put Humans Out Of Work

The motivation, as usual, is the “bottom line,” and maximizing profits while minimizing costly (human) labor overhead:

In the latest victory for robot kind over humans, LOXM’s job will be to execute client orders with maximum speed at the best price, “using lessons it has learnt from billions of past trades — both real and simulated — to tackle problems such as how best to offload big equity stakes without moving market prices.“

In other words, one giant “big data” aggregator, using historical precedent to guide future decisions, which coming in a time when “this time it’s certainly different” for the broader stock market, could be a big mistake.

“Such customisation was previously implemented by humans, but now the AI machine is able to do it on a much larger and more efficient scale,” said David Fellah, of JPMorgan’s European Equity Quant Research team. Mr Ciment said that, so far, the European trials showed that the pricing achieved by LOXM was “significantly better” than its benchmark. Continue reading →

No Change In Trends – Quarterly & Monthly Charts

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“Nothing ever changes on Wall Street.  Speculation is as old as the hills.  What has happened before in the markets will happen again.” – Jesse Livermore

Michael Noonan – Despite taking his life at the Sherry Netherland Hotel in 1940, at the age of 63, [he considered himself a failure], Livermore is  revered by many as the consummate trader.
We often comment on the importance of rules, and our adherence to rules does not come from Livermore, but he always attributed his losses to the times when he failed to follow his rules.

Our point is that markets never change, and as it turns our, neither do people, and certainly not when it comes to trading/investing in the markets, stock, commodities, etc.  Most people do not have a set of written rules that they follow at all times.  A lack  of discipline would have to be next in rank.  It can be hard to be successful in the markets with rules and discipline.  It is impossible to succeed without them.

The greatest credibility for market analysts is given to those who talk a great deal about fundamentals.  On the opposite end of the spectrum, those to whom the least amount of credibility is given, are technical analysts and chart readers.  We fall in the latter, reading
the markets through developing activity in the form of price and volume.

The one constant we have delivered in our commentaries is the importance of knowing the trend, first and foremost.  Since the 2011 market highs in PMs, the trend has been down, and the trend for both gold and silver remains down to this day.  We also have made the distinction between buying and holding physical gold and silver and not being long in the futures market. seemingly related, [only now tenuously by price], but very different in purpose.

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