Dear Trader:

TradingMarkets' mission is "Making Great Traders." Each week we publish trading strategies and research from many of the best professional traders and educators in the world.

Here are the best of the articles we published this week. We hope you enjoy them and prosper from them!

This Week's Top Lessons

Trading and Hedging Risk with Steve Temes of Lincoln Capital, Part 1

Steve Temes has been trading stocks and options successfully for more than 20
years.
In part 1 of this interview,
Steve talks about his background as a trader, and how he looks for "event-driven
catalysts" to reveal opportunities in the market. You'll learn from his insights
on trading and hedging with stocks, options and ETFs, and the factors that he
uses to determine when one vehicle is preferable to another.

How to Keep the Profits You Make

As every trader knows generating profits on a consistent basis is not easy to
do. But for many, it's an even greater challenge to maintain a disciplined money
management system that enables those profits to be preserved. In this article,
S&P trader Larry Levin teaches you his own time-tested tactics for keeping his
account growing (and not going backwards).

How to Day Trade With Confidence

In this article, Austin Passamonte reveals the flaws of many popular trading
approaches ranging from scalping to Martingale-based systems. He then leads you
to a solid foundation for long-success and confidence as you start each trading
day.  

Using Trend Channels to Find Trade Entries

Can you base your trading decisions on lines draw on a chart? According to
trader Joseph Hopkins, you can. In this article, he shows you how he does it.

Trading the Post-crash Implied Volatility Skew, Part 1

Few traders have performed the level of deep analysis that Jeff Augen has on
quantitative edges for options trading when precise conditions arise. In this
article, Jeff makes the remarkable observation of how a rare opportunity for
options traders has arisen due to the steep decline in the markets in 2008

Popular Past Articles

Big Saturday Interview: Andrew Lo of MIT's Laboratory for
Financial Engineering

Andrew Lo is the director of the Laboratory for Financial Engineering at
Massachusetts Institute of Technology. This weekend, he provides TradingMarkets
with his insights on trading and technical analysis. Perhaps most fascinating is
Andrew Lo's discussion of what he calls the Adaptive Market Hypothesis (AMH). Lo
calls his AMH "a new view of financial markets from a biological
perspective...within an evolutionary framework," and shows how this way of
thinking about market behavior may help to "reconcile many of the apparent
contradictions between efficient markets and behavioral expectations."

Living the Dream: Trading Stocks with Charles Kirk of The Kirk Report


For years the average Joe or Jane Trader has had an advocate and an inspiration
in Charles Kirk, trader, author and publisher of The Kirk Report. How was
Charles Kirk able to become one of the fortunate few who make their daily bread
solely from the sweat of their stock trading acumen? You'll find out in this
week's Big Saturday Interview.

Good luck and successful trading!

Eddie Kwong

Executive Vice President

TradingMarkets