Oil N' Gold - Resources for Serious Traders
A Favorite Trading Pattern Print E-mail
Tutorials | Articles | Written by Brett N. Steenbarger |
Some of my favorite morning trades are based on a reading of strength or weakness in early trading--using such tools as the NYSE TICK and Market Delta--and then handicapping the odds of taking out the previous day's high or low.
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When the Coaching of Traders Doesn't Work: Part One Print E-mail
Tutorials | Articles | Written by Brett N. Steenbarger |
We're accustomed to thinking about relapse in the context of counseling/therapy for substance use disorders and other addictive problems. Research tells us, however, that relapse rates are just as high for many other problems, from marital discord to depression. After all, how many of us have made efforts to change our patterns of eating or exercise, only to relapse into old ways?
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Stages of Change in the Coaching of Traders Print E-mail
Tutorials | Articles | Written by Brett N. Steenbarger |
In my last post, I mentioned the relapse problem as a major challenge for any coaching efforts. As several readers astutely pointed out, skill development and the acquisition of expertise are a function of practice. That same practice effect pertains to personal change as well. Repetition cements all learning.
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Becoming Your Own Trading Coach Print E-mail
Tutorials | Articles | Written by Brett N. Steenbarger |

In a recent blog post, I suggested that coaching for traders could be valuable if properly structured. But is it possible for traders to coach themselves for success? Can the process of expertise development be self-generated?

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Becoming the Person You Know You Can Be Print E-mail
Tutorials | Articles | Written by Brett N. Steenbarger |
In bodybuilding, there is a principle known as "train-to-failure" (TTF). The idea is that you lift that amount of weight that permits you at least ten repetitions, but continue the lifting to the point of failure: the point at which you can no longer sustain the repetitions. Such a heavy-duty program, as outlined by the late Michael Mentzer, is low force (to minimize injuries) and high intensity (drawing upon the body's full reserves). This program also contradicts usual practice, which has athletes lifting every day.
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Hybrid Trading: How Discretionary Traders Can Become More Systematic Print E-mail
Tutorials | Articles | Written by Brett N. Steenbarger |

I recently finished an article for SFO Magazine with Henry Carstens, the system developer who contributed a worthy best practice for the series a while back. I continue to feel that Henry's introduction to testing trading ideas is the best article on the topic I've ever read.

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Assessing Trader Personality: The Role of Trader Psychometrics Print E-mail
Tutorials | Articles | Written by Brett N. Steenbarger |

Are there personality patterns common to successful traders? This is a question that interests aspiring traders and trading firms alike. The usual way of addressing the issue is to offer traders a set of pencil-and-paper questionnaires that evaluate personality traits and then see if the results correlate with trading outcomes.

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The Most Important Step in Becoming Your Own Trading Coach Print E-mail
Tutorials | Articles | Written by Brett N. Steenbarger |

Before you read this post, I'm going to ask that you review my previous post on "The Devon Principle". It is very, very relevant to a question recently asked of me by a trader: "I know I can't afford to hire a private trading coach. What do I need to do to coach myself for success?"

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The Heroic Dimensions of Trading Print E-mail
Tutorials | Articles | Written by Brett N. Steenbarger |

For me, there's no better time than a long holiday weekend to step back and ask the big questions: those that deal with the meaning and significance of being a trader. These segments from my two books capture much of my sentiment on the topic.

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Attribution and Bias Among Traders Print E-mail
Tutorials | Articles | Written by Brett N. Steenbarger |

Perhaps the cardinal contribution of behavioral finance research is the elaboration of the ways in which people depart from strict rationality under conditions of risk and uncertainty. How we process information affects our behavior, creating situations in which we can risk our capital more for psychological reasons than for logical ones.

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Protracted Buying in the NYSE TICK: What Comes Next? Print E-mail
Tutorials | Articles | Written by Brett N. Steenbarger |

A very sharp upward spike in the NYSE TICK is often a sign of buying panic; my general leaning is to sell those moves, as they're often overdone. That led to a nice short trade on Tuesday.

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