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 2
Steve Temes has been trading stocks and options successfully for more than 20
years.
In part 2 of this interview,
Steve talks about what traders need to do in terms of risk management to deal
with the unprecedented levels volatility that has recently hit the markets.
Click to read part 1.
Exiting a Position: Strategies for Traders
Traders can use a variety of techniques to let them know when profit-taking time
has come. But one of Larry Connors' favorites has been and remains the 5-day
moving average exit.
Trading the Post-crash Implied Volatility Skew, Part 2
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 expands upon his remarkable observation of how a rare opportunity for
options traders has arisen due to the steep decline in the markets in 2008
For Trading Success Be Open to Every Possibility
If are a discretionary trader, you know that you can have a great strategy with
high probability setups. But they can all fail when the market does something
that nobody expects. In this article Kurt Eckhardt shows you how to trade with
the flow of the markets even under the most extreme circumstances.
When to Exit an Options Trade: Don't Gamble Away Your Profits
Knowing when to exit an options trade is one of the most difficult asects of
trading options. Here are rules that Michael Shulman has develop during his 25
years of options trading.
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
