The more I trade and interact with other traders (both old and new), the more convinced I become that the markets can best be approached not as a problem to be solved but as a game of understanding group psychology.  Since all of my formal training (chemical engineer, MBA, yada, yada, yada…) is in problem-solving,…

I believe the most significant work that anyone can do to increase market returns is self- work. Really understanding yourself and how you think can give you an edge that others in the market don’t have. As part of my training, I give a long questionnaire to each trader to do an evaluation of themselves….

What Is a Block Trade? A block trade is a large, privately negotiated securities transaction. Block trades are arranged away from public markets to lessen the effect on the security’s price. They are usually carried out by hedge funds and institutional investors via investment banks and other intermediaries, though high-net-worth accredited investors may also be eligible to participate.1 The New York…

What Is a False Market? A false market occurs when prices are manipulated and impacted by erroneous information, preventing the efficient negotiation of prices. These types of markets will often be marred by volatile swings because the true value of the market is clouded by misinformation. Understanding a False Market The health and success of financial markets rely on…

This article provides an overview of Wyckoff’s theoretical and practical approaches to the markets, including guidelines for identifying trade candidates and entering long and short positions, analysis of accumulation and distribution trading ranges, and an explanation of using Point and Figure charts to identify price targets. Although this article focuses exclusively on stocks, Wyckoff’s methods…

Pre-market preparation impacts your performance throughout the trading day. It is an urgent task because financial markets are highly competitive and require constant realignment of strategies to short-term conditions. This is especially true in our modern environment wherein securities trade through a 24-hour cycle. Many traders still flip on their screens just before the opening bell hoping to…