The American dream – an amazing fact

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“In 1923, seven men who had made it to the top of the financial success pyramid met together at the Edgewater Hotel in Chicago. Collectively, they controlled more wealth than the entire United States Treasury, and for years the media had held them up as examples of success.

Who were they? Charles M. Schwab, president of the world’s largest steel company; Arthur Cutten, the greatest wheat speculator of his day; Richard Whitney, president of the New York Stock Exchange; Albert Fall, a member of the President’s Cabinet; Jesse Livermore, the greatest bear on Wall Street; Leon Fraser, president of the International Bank of Settlement; and Ivar Kreuger, the head of the world’s largest monopoly.

What happened to them? Schwab and Cutten both died broke; Whitney spent years of his life in Sing Sing penitentiary; Fall also spent years in prison, but was released so he could die at home; and the others? Livermore, Fraser, and Kreuger, committed suicide.”

—Donald McCullogh, Walking From The American Dream

Copper prices. Where to from here?

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Support and Resistance are lines that illustrate the ongoing battle between the buyers (the bulls) and the sellers (the bears).

  • Support levels indicate the price where the majority of investors believe that prices will move higher. As the price declines towards support and the price become cheaper, buyers become more inclined to buy and sellers become less inclined to sell.
  • Resistance levels indicate the price at which a majority of investors believe that prices will move lower. As the price moves towards resistance and the price becomes higher, sellers become more inclined to buy and buyers become less inclined to sell.

See below a graph representing the support and resistance of the Copper price.

Copper Full0316 Future

As long as the price of a security moves between the support and resistance level, the trend is likely to continue. A break beyond a level of support or resistance can be the sign of:

  • An acceleration of a trend
  • A reversal of a trend

When a resistance level is broken, its role is reversed and it becomes a support level. Similarly, when a support level is broken, that level becomes a resistance level.

Support and resistance analysis is used by technical traders to make trading decisions and identify when a trend is accelerating or reversing. Being aware of these important levels should affect the way you trade and help you significantly improve your performance.

Excess is in the eye of the beholder – F.A.N.G. vs. C.I.M.Q.

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fang

Excess in financial markets:

The degree to which our expectations of excess are actually exceeded. We all have an expectation of excess in the financial markets. That is reality. It’s when the reality of what we think is excess is actually exceeded – usually be a long shot. Now that’s excess.
Why are we surprised by that?
It happens all the time.

What is the simple premise that drives this equity curve?

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s1

MY PREMISE:

A trading strategy will generate a random distribution of profits and losses.
1. Big profits. 2. Small profits. 3. Small losses. 4. Big Losses.

 Any reasonably disciplined trader can probably sway the bias towards 1 and 2.
The Stockradar simply cuts out 4. Big losses, and sways it heavily towards 1 and 2