Category: Food for Thought

Stock Market Outlook and 3 Questions to Ask of Your Trading Plan

Stock and Commodities Outlook In a recent Oil and Gas Investments Bulletin I looked at the relationship between commodities and stocks. Moving in virtual lockstep over the last few years the two asset classes have recently decoupled. In this article I explain what I believe the decoupling implies and ultimately where I think it will take the…

Are These 4 Emotional Pitfalls Sabotaging Your Trading?

Are These 4 Emotional Pitfalls Sabotaging Your Trading? [Originally Published] August 13, 2009 By Jeffrey Kennedy The following is an excerpt from Jeffrey Kennedy’s Trader’s Classroom Collection. For a limited time, Elliott Wave International is offering Jeffrey Kennedy’s report, How to Use Bar Patterns to Spot Trade Setups, free. [Emotional Pitfalls:1] To be a consistently successful…

Kweku Adoboli: The Rogue Trader Who Needed A Miracle

Kweku Adoboli: The Rogue Trader Who Needed A Miracle By Jenny Short In September 2011 things were not much different from how they are now. Large parts of the world were still trying to reckon with the financial crisis which has brought about huge amounts of unemployment, the death of countless businesses and just general…

Why Most Traders Lose Money and Why the Market Requires It

Today, I take a more abstract and deeper look at the issue of “why most traders lose money.” As you are reading, and as I point out in the article, individuals can escape from herding behavior and create above average (or below average) returns. That said, in order to break from the herd there are are a…

How Nick Leeson Brought Down Britain’s Oldest Bank

How Nick Leeson Brought Down Britain’s Oldest Bank By Jenny Short When it comes to banking scandals, no name is more infamous than that of Nick Leeson. While the likes of French Trader Jerome Kerviel and former Allfirst banker John Rusnak were responsible for bigger losses, Leeson’s illicit trading in the early 1990s brought down…

Why Economic Forecasts Often Fail – Linear Thinking

Why Economic Forecasts Often Fail [Linear Thinking] Linear thinking often utterly misses the mark in making an economic forecast. [Originally published] April 13, 2010 By Elliott Wave International Let’s begin with a paradox: The one constant in our society is dramatic change. This is the main reason why projecting present conditions into the future often fails. “If…

Bear Market Stress is Weakening Society

The following article was published in December of 2011. In the months since we have seen the stock market rally. It should be noted that those affiliated with this article believe we are in a bear market rally, as opposed to a major trend higher. The distinction is relevant as much of the information presented…

Q&A with Terry Burnham, Ph.D Author of Mean Markets and Lizard Brains: How to Profit from the New Science of Irrationality

Q&A with Author Terry Burnham, Ph.D. ABy Jill Noble | [Originally published] January 22, 2012 If you want to understand market psychology and the origins of human economic behavior, Terry Burnham is a name you need to know. He’s the author of Mean Markets and Lizard Brains: How to Profit from the New Science of Irrationality,…

Dr. Johan Bollen on Twitter, Mood and Socionomics

Dr. Johan Bollen on Twitter, Mood and Socionomics by Jill Noble | [Originally published] February 16, 2012 In the world of algorithm-based investing, you can hardly throw a stick these days without hitting someone who’s incorporating social media data in their trading method. Traders seem convinced that social chatter from a specific group or about a specific event (like a…

What All Major Depressions Have in Common (let’s talk deflation)

Agree or disagree? This is more of a fundamental topic than I typically venture into, but none the less is an interesting debate. What All Major Depressions Have in Common Signs of deflation are visible but the public will be fooled  March 23, 2012 By Elliott Wave International Deflation requires a precondition: a major societal…

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