Timothy Morge has been a professional trader, author, educator and mentor for more than 35 years.Besides trading his own capital, Tim is President of Blackthorne Capital, a private money management firm that works with several of the largest non-U.S. Institutional portfolios. In the 1980’s and 1990’s, he managed and taught other traders for institutions like JP Morgan and Goldman Sachs. He remains one of the world’s largest currency traders, routinely carrying positions of several billion U.S. Dollars. Read More
Archive for the ‘Glossary’ Category
Line Babies
April 1st, 2010 | 
Author: Describes people who trade off lines without really understanding what the line represents.
You know you're a Line Baby if you say things like -
"That was a perfect line. How could price punch through!"
"They knew I had a stop under that line. That's why I got stopped out. If I didn't place a stop that never would have happened!"
"Price is moving outside my median lines. This trade will be a loser!"
(Also see The Market is Always Right)… Continue reading
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Chicken Market
A market that stands in one place and jumps up and down and goes nowhere and can run off in any direction at any time and if you get caught you might get your head chopped off and end up as fried, roasted or sliced to pieces.
(thanks to Steve Gorski and Jerry)… Continue reading
Confirmation bias
A behavior that causes a person to interpret information in such a way as to reinforce a preconceived notion, opinion, theory, or idea.
Remember what Tim tells us, “…master yourself.”
Have you ever formed an opinion about the market and found yourself ‘seeing’ evidence everywhere that your opinion is correct and therefore concluding your trading decisions based on that opinion must also be correct? Has this behavior gone further and you find yourself discounting evidence that would prove your opinion is wrong?
Be aware of confirmation bias behavior.
Constantly challenge your beliefs: look for indicators (or… Continue reading
The Market is Always Right
You hear this quote quite frequently. When you’re learning to trade, as I am, you pay attention to everything anyone says who you think knows more than you. You take it to heart and try to absorb it into the sponge that is your developing trader’s brain.
This was one quote, I confess, I didn’t quite get. Until now.
At the end of 2009, I read an article written by a group of forex traders/analysts discussing their lessons learned from 2009. Each of the eight who participated wrote a couple of paragraphs and as I am reading something… Continue reading
Hit the Bid
Slang term describing an action by a dealer who agrees to buy at another dealer’s bid price. In essence the dealer is taking a lower price for something they are selling. Normally, the dealer’s ask, or offer, is the price at which they want to sell.
Also see Take the Offer
