August 24, 2016

How to Find Stocks to Trade


  We all want to make money trading stocks. But there are thousands and thousands of stocks and ETFs you can trade. How do you find the ones to trade? You create a stock scan.

  I've listed and organized my stock scans below. These scans cover every important aspect of the American economy as well as some foreign economies.

  Reviewing scans enable me to find opportunities and to better understand what the market is thinking about various aspects of the global economy.

  And if you're motivated, check out these posts that explain how I view the markets and how to trade them with the best risk/reward: The Laws of Trading, How to Trade, and Technical Analysis.

  Stock scans:

August 18, 2016

The Performance Enhancing Drug (PED) of Trading


  So many of the top athletes in the world are testing positive for Performance Enhancing Drugs (PED). Pittsburgh Steelers’ linebacker James Harrison, Green Bay's Clay Matthews and Julius Peppers are under investigation for alleged use of performance enhancing drugs. Several athletes at the Rio Olympics were banned due to testing positive for PEDs. The entire Russian track and field and weight lifting teams were banned from competing in the Rio Olympics because of a state sponsored system of cheating was uncovered (including the involvement of the Russian version of the US CIA).  But why do these people feel the need to use PEDs despite the chances of being caught and punished?

  These highly talented athletes cheat because the competition is fierce beyond any layman’s comprehension. Milliseconds mean the difference between getting a gold medal or getting a medal at all. Only the top performers succeed and are rewarded with medals, bonuses, and sponsorships. That means the vast majority of participants fail, about 90% or more. That sounds strikingly similar to the probability of failure in trading.