Have you ever noticed the high number of acronyms for ailments, disorders and afflictions? It's as if someone spilled a bowl of Campbell's alphabet soup over our collective medical records. You might have GERD (gastroesophageal reflux disease) or ADHD (attention deficit hyperactivity disorder). The list goes on and on. There is one little known disorder that afflicts many traders: EHTD.
Emotional hyperactive trading disorder is a silent killer that is known only to the trader and his broker. The symptoms are as follows:
Extremely short holding periods for virtually all positions.
An almost simultaneous opening of new positions with the closing of existing ones.
Unusually high trading commissions relative to the size of the trading account.
Rapid fluctuations between bullish and bearish bias resulting from minor oscillations in price and the prevailing mood of the trader.
Frequent bouts of memory loss when trying to recall the rationale for buying a particular stock.
Technical Analysis Crude Heads for a Crucial Level 10/26/2006 9:10 AM EDT Look for its pattern to change. Plus, gold is looking good.
Technical Analysis The Higher We Go, the Harder We'll Fall 10/26/2006 8:53 AM EDT Without a meaningful consolidation, it'll spell trouble when selling finally kicks in.
Technical Analysis Don't Sell on Dow Theory -- Yet 10/26/2006 7:06 AM EDT Nonconfirmation is one thing, but the action of the next few weeks could generate a sell signal.
At the time of publication, Fitzpatrick held none of the stocks mentioned, though positions may change at any time.
Fitzpatrick is a freelance writer and trading consultant who trades for his own account in Encinitas, Calif., and contributes to TheStreet.com Short Advisor. He is a former co-manager of a hedge fund and teaches seminars on technical analysis, options trading and asset-protection strategies for traders and business owners.
Fitzpatrick graduated from the McGeorge School of Law and was a fellow at the Pacific Legal Foundation, a nonprofit public interest firm specializing in constitutional law. He also practiced law in the private sector before pursuing trading as a full-time career. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. While Fitzpatrick cannot provide investment advice or recommendations, he appreciates your feedback; click here to send him an email.
RSS FEEDS
PODCASTS
