As part of an occasional series of great approaches to trading, written by fellow traders/bloggers, here is a series we call "Truer Words".
The articles discuss topics of trading which include: emotional intelligence, trading journals (especially, but not limited to, the ones that document benefits of using Trade-Ideas), size management, P/L performance, and many other dimensions of the trading process - not just pre-trade analytics and idea generation.
Declan Sets the Table
Fallon D: This is the second time we mention Declan for using Trade-Ideas within his stock selection service. His blog offers daily proof of the opportunities Trade-Ideas provides according to his set-ups. Every few months he summarizes the calls and compares them to the broader market indices as well as Mad Money's Jim Cramer. It's all summed up in a great table and in the post below - we could not be happier for his results. http://blog.fallondpicks.com/2006/02/trade-ideas-vs-fallond-vs-jim-cramer.html
We just invited Declan to come and speak about his methods using Trade-Ideas at our upcoming Learning Curve Seminar, June 16-17th in San Diego, CA. We hope he can make it. Click on the link for more information and updates.
Note: Here is the first time we mentioned FallonD. The results are summarized in an informative graphical comparison: http://blog.fallondpicks.com/2006/01/trade-ideas-story-so-far.html#comments
Watch the First Hour by Dr. Brett Steenbarger
This is not the first time Brett investigated the timing of daily highs and lows. Back in October, 2005 he wrote an article called "All Times of Day Are Not Created Equal" (available on the articles page of his website) in which he reviewed the prior 36 days of trading. (Note: we designed a strategy around Brett's findings on this topic here, "Strategy Session: Predicting Strong Closes"). In this update Brett reaffirms the conclusion that about two-thirds of the time a stock reaches its daily high or low within the first hour of the day. If a stock hits the high or low after the first hour, there is a strong chance that it is a 'candidate' high or low and has not seen the end of its movement until the final hour. This update also contains a mention of Trade-Ideas as an ideal service to spot this pattern and to best profit from its existence. Thank you Brett!
The full article is at Trading Markets.com.