Spooky Stuff. Bitcoin rising from the dead

Welcome to my weekly snapshot of information that I hope will help in your journey as a systematic, rules based, trader!

In todays issue:

  • Trading Quote
  • Trading Strategy Tips
  • Recommended Trading Books
  • Whats on our Watchlist
  • Trading Humour

Trading Quote 

"The whole secret to winning big in the stock market is not to be right all the time but to lose the least amount possible when you're wrong." - William J. O'Neil

William O'Neil founded the Investor's Business Daily in 1984. This paper provided traders with news and stock charts before the internet made this information universally available. Mr. O'Neil also published the book How to Make Money in Stocks which introduced the CAMSLIM  investment strategy.  This is an excellent book that I recommend all traders should read.

This quote summaries the key to trading success.  Don't believe the high winning % touted by the gurus on social media.  Most successful traders are profitable on less than 40% of their trades.  Your trading strategy needs to include a rule on how much you lose on the 60% of trades that aren't winners.

Trading Strategy Quick Tips

  • Embrace Continuous Learning- Knowledge is power. Invest in your education to make better-informed trading decisions.
  • Risk Management is Key- Protect your capital. Implement effective risk management strategies to safeguard your investments.
  • Learn to be Patient - Trading is a marathon, not a sprint. Practice patience for better long-term results. Stalk your trades and don't make impulsive decisions.

Recommended Trading Books

Trend Following One of the common traits of the world's top traders is that a significant percentage of them are trend following traders.  In this book Michael Covel goes into great detail explaining the trend following philosophy and that the key to trading success is executing straightforward and repeatable rules.

What's on our Watchlist

Your Trading Strategy should include a daily scan to find the strongest trending markets.  Every day after the market closes as part of my trading strategy I scan my trading portfolio of approximately 50 markets to identify the ones that are showing strength and should be added to my watchlist. The strongest trending markets are highlighted in the table below.  How does this compare to the markets on your watchlist?

trending markets

It is appropriate that the week before Halloween Bitcoin is rising from the dead and is showing incredible strength over the past month, up almost 33%.  In this table we are showing the Canadian Bitcoin ETF.  The recent strength in Bitcoin is a result of rumours that the by the U.S. Securities and Exchange Commission (SEC) is close to approving a US Bitcoin exchange-traded fund (ETF).  I would never recommend trading based on news but the recent strength in Bitcoin has resulted in a new uptrend with the Canadian Bitcoin ETF breaking out above the 100 day price channel which is an entry signal for many trend following traders.

Trading Humour

Please let me know what you think.  What did you find most useful? What would you want more or less of? If you find this information useful please share with fellow traders.
Trade Smarter....Trader Better!
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