The three big reasons for trading drawdowns


The three big reasons for trading drawdowns according to renown trading Psychologist Brett Steenbarger:

1)  They’re trading a strategy that doesn’t fit the present market;
2)  They’re trading the right strategy, but their head isn’t in the game and they’re not following their strategy;
3)  They’re trading the right strategy with a good mindset, but they’re employing the wrong tactics and thus not implementing their strategy the right way.

The may be so but I find the  STOP the simplest most effective and reliable way to stop drawdowns.

Five distinguishing characteristics of winning traders

1. Successful traders trade uniquely

2. Successful traders are multidimensional 

3.Successful traders work at their trading

4. Successful traders know when to not trade

5. Successful traders are self-aware

Olivia Engel flies the flag for the quant managers

Oliva Engel of State Street helps fly the flag for us quant managers being the first to win the Blue Ribbon Award for best large-cap fund. She returned 14.5 % against the accumulation index gain of only 2.8%. Well done Olivia. The full article is on the front page of the AFR today 19/8/16.

2016-08-19 14.36.40

Artificial intelligence has some way to go yet



A computer armed with artificial intelligence has beaten the worlds best player at the Chinese game of Go. Go is complicated, but its nothing compared with a world that has more than 7 billion traders making their own moves every day. Yes we all need  a plan of engagement.

Legendary fund manager Howard Marks comes to town……

“Emotions and psychology are the enemies of being a good investor”

“its tough but you have to stick to your creed (trade plan) – if you fall on hard times you don’t change your religion”, he says as investors grapple with an unattractive choice of accepting low returns on taking more risk.

Notwithstanding his wisdom our price analysis approach of disassociating ourselves from fundamental and emotional ‘noise’ and using market psychology to our advantage allows us to generate solid returns even in todays environment. Breakouts and trends still occur.

You just have to make the ‘giant leap’ of accepting and doing what the trading plan tells you.


Have a great day.

Why bad news is really good news for bull markets.

For those who missed it this weeks article on page 23 of the weekend AFR 30/31 July 2016 by Patrick Commins provides a great insight into why bad news really is good news for stock markets. If its true can stay high only as long as people stay worried.

And where is the major strength for our market: