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The Blog of Adam H Grimes

musings on markets, risk, and life.

How to draw trend lines

One of the complaints leveled against technical analysis is that tools are primarily visual and subjective, rather than being true analytical tools. There certainly is some truth to these complaints (and I have often been a critic of traditional technical analysis),... read more

The power of the channel

Trendlines are useful. For the uninitiated, it may seem odd to draw lines on charts and to expect them to work, but what we are actually doing here is to create a shortcut (a heuristic, if you prefer.) A properly drawn trendline will reflect both the trend and the... read more

What to do when your stop is hit?

This could, perhaps, be the shortest blog post ever. I could simply answer the question with: follow your rules. Get out. But let’s dig a little deeper. Before we really begin, it’s important to remind ourselves that there are many ways to trade and invest... read more

The most important thing you need to know about commodities

The marketplace is constantly evolving. One of the biggest changes over the past decade is the proliferation of Exchange Traded Products (ETPs) that allow stock traders to trade commodities (and other financial instruments) in a stock account. Much of the traded... read more

5 ways to improve your trading today

Markets are complicated. Market analysis is complicated. Developing a trading system certainly can be complicated. But trading cannot be complicated. The act of placing trades and evaluating results must be as streamlined and simplified as possible. Here are a few... read more

The Trader’s Journey: The Hero’s Journey

This post was originally published on See It Market as part of the Market Masters series. The original post can be found here.] I am a quantitative-discretionary trader. I have made it one of my life’s goals to understand how financial markets move, to understand how... read more

Discretionary and consistent? How?

I’ve been asked a few variations of the same interesting question recently. Here are a few examples: The one thing I keep struggling with is finding an edge I can use in a disciplined and consistent way. How do you define an edge? To me an edge can’t be... read more

Managing your luck

I left you, at the end of yesterday’s post, with some strong evidence that luck plays a big part in your trading results. Now for the good news: you are not powerless against luck. People say many different things about luck, like “luck is what happens... read more

What’s luck got to do with it?

Let’s cut straight to the punchline: the answer is, “it turns out, quite a lot.” Continuing on this week’s series that attempts to break down important technical trading ideas into easily digestible pieces for everyone, let’s take a look... read more

Technicals for everyone: overbought / oversold

Continuing from yesterday’s post, I wanted to dig a little bit deeper into the idea of what happens when markets go too far, too fast and snap back. This concept is called overbought/oversold in the traditional technical literature, and it is one of the most... read more

Technical tools for everyone

If you read much of my work, you will begin to see that applying technical tools takes work; it takes a lot of time and experience to know how to apply them correctly, even if we are using relatively simple tools with a statistical edge. (Beware: most technical tools... read more

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