Latest Blog Posts

Trading Psychology

How to Think Like a Trader by Changing your Frame

If we look at the collective participation in the markets, we find many different kinds of people, different kinds of beliefs, and different kinds of theories. These differences create price movements and patterns. To understand and exploit…
A00dd7bff08ca10f518ebdfe93f54f5b1b91b4b9

The Psychology of the Stoploss – Why is it so Hard to cut Losses?

Many new to trading have the tendency to liquidate positions that show a small profit, yet they keep those positions that show a loss as are unwilling to take a loss, in hope that prices will rebound. Such a counter-intuitive strategy will…
What Moves Prices In The Financial Markets

What Moves Prices in the Financial Markets?

Despite what people may otherwise tell you or any preconceived ideas you may have, there are only two things that move stock prices. They are supply and demand - nothing more and nothing less. This is the foundation of basic economics as…
Academic1

The Random Walk Myth: Theory vs. Practice

The random walk theory, which started off from academic offshoots, put forth the idea that one should give up trying to predict or beat the markets because it was impossible to do so. In theory, this theory sounds plausible, but in practice,…
3

Guest Speaker for STATS Market Outlook & AGM 2010

Today, I was invited as a guest speaker to give a talk at 2009 AGM of STATS (Singapore Technical Analysts & Traders Society) on the "Strategic Outlook for 2010". Before the talk, there was a poll, and it seemed that the general consensus…
20091030 Dow Jones Industrial

Volume Spread Analysis – Spotting the Hidden Clues in Volume

Price action and volume lies at the core of technical analysis, since that is all the data a market technician works with. Almost all technical methods, such as chart patterns, candlestick patterns or even Elliot wave are studies of price action.…
Aibc

Asia Investment Banking Conference 2009

This event was held in SMU, and saw professionals and student flying in from all over the world to attend talks and networking sessions with a variety of renowed industry speakers. After 3 days of talks and workshops, the event…
What Is Technical Analysis

What is Technical Analysis (TA)?

Technical Analysis is the study of price patterns and trends in the financial markets so as to exploit those patterns. It is in effect applied mass psychology, for it studies the collective action of all market participants. There are 2 main…