Archives: trading

Market Minute x 4

February 3, 2010 | By jackieannpatterson | No Comments | Filed in: Classes, Outside Products Reviewed.

Catching up on guidance from a master trader in four quick minutes.  Click the links to watch the one-minute videos and get grounded with a solid approach to trading.     Lesson 5 encourages focus. Lesson 6 is my favorite. Click here to follow up with more information on how to get this step done right! Lesson 7 is a • Read More »

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Jack Schwager Market Wizards Lecture

December 8, 2009 | By JackieAnnPatterson | No Comments | Filed in: Classes, Outside Products Reviewed.

 I just watched a video lecture by Jack Swager, author of trading classics Market Wizards and The New Market Wizards.   If you haven’t heard of them, in each book Schwager interviews top traders and picks their brains about trading, the markets, and what made them successful. The reasons these works are revered as classics is not because he gets • Read More »

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Free Email Trading Course by Adam Hewison

October 19, 2009 | By jackieannpatterson | No Comments | Filed in: Classes, Outside Products Reviewed, Strategy Development.

 I get Google alerts on every MACD blog posting which is quite a lot. Most are not noteworthy and some are downright off base, but every once and awhile, a really good post on MACD comes along. That happened most recently when I came across a well-done video by Adam Hewison using MACD and MACD divergence. • Read More »

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MACD Divergences on SPY Since 2001

September 17, 2009 | By JackieAnnPatterson | 5 Comments | Filed in: MACD, Technical Strategies.

People at the MoneyShow and elsewhere ask me, “why MACD?” The short answer is that seeing how MACD Divergences pointed out some very good times to buy stocks and ETFs motivated me to want to use MACD.  So I learned the basics, made some good trades and a little money.   It wasn’t all roses however and taking • Read More »

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Trader’s Coach Dr. Brett Steenbarger at LA Trader’s Expo

June 9, 2009 | By jackieannpatterson | No Comments | Filed in: Classes.

 Engaging the audience at an early-morning session of the Trader’s Expo is not an easy thing but Dr. Brett Steenbarger showed up with the energy, good advice, and R-rated language to wake us up to the mportance of psychology in trading.  Dr. Steenbarger is an expert in “brief therapy” which is getting things done in a few • Read More »

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My BackTesting Engine Evaluation in 2007

April 9, 2009 | By JackieAnnPatterson | No Comments | Filed in: Backtesting Set Up.

Before starting the current round of major backtesting, I evaluated several tools to decide which to use.    This article shares the highlights of that endeavor and the main reasons for the outcome. TradeStation was my incumbent.  By 2007 when I made my last evaluation, I’d had a couple years of experience with it as a charting tool and a backtesting • Read More »

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BackTesting Moving Averages

March 9, 2009 | By jackieannpatterson | 7 Comments | Filed in: Backtesting Set Up, Moving Average, Reports, Technical Strategies.

Why Moving Averages As a trader or investor, the only reason to investigate moving averages is to gain knowledge to increase profits. Like many other technical indicators, moving averages are meant to help us objectively tell the market status at any given time. This helps us see through the emotions of the day and make • Read More »

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How To Clean Price Data for Backtesting

December 16, 2008 | By jackieannpatterson | 2 Comments | Filed in: Backtesting Set Up.

Cleaning data for backtesting is not easy but its very necessary to get meaningful results.    Mis-adjusted price splits can skew the price data and mislead the unwary backtester into thinking they’re found the holy grail when the strategy merely happens to catch the good side of a bad gap. Here’s the steps to screen out dirty data and produce a clean dataset: 1. • Read More »

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Adverse Excursion Definition

November 10, 2008 | By jackieannpatterson | No Comments | Filed in: Glossary.

An Adverse Excursion is the amount that a trade goes in the wrong direction after entry and before exit.   The Maximum Adverse Excursion (MAE) is the worst over the life of the trade. For example, say a stock is bought at $30, then drops to $28 before rising to $38 then settling back to an exit at $35.   The • Read More »

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ATR Trailing Stop Definition

November 10, 2008 | By jackieannpatterson | No Comments | Filed in: Glossary.

The ATR Trailing Stop is one way to limit losses and protect profits. A stop loss order is set a multiple of the Average True Range (ATR) away from the current stock price. As the price moves in the trade’s favor, the stop rachets along with, always calculated from a better closing prices and never from worse • Read More »

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