Common Misconceptions in Trading

We can't begin to list every possible error that traders might make, but certain misconceptions continue to resurface again and again. This article describes money management errors, misapplication of statistical measures such as correlation and covariance, problems with pyramiding positions, and commonly overlooked opportunities for diversification. Click here to view article.

How and Why the System Works

This information packed article explains the reasons behind the effectiveness of certain classes of trading systems, as well as establishing the mathematical basis for our own techniques. A must read for all subscribers. Click here to view article.

Why Fractals?

With all of the tools available, why is a fractal approach ideal? If a fractal model of the markets is clearly superior, what sort of trading techniques will best take advantage of the fractal geometry of price changes? We answer these questions and more. Click here to view article.

Which Fractal System?

Visitors to this site may have noticed that there are many other systems around which call themselves fractal trading systems. We don't deny that these systems might have some feature which justifies calling them fractal systems, as opposed to just being another set of techniques for technical analysis. But is any of this stuff any good? Click here to view article.

Skeptical?

From time to time, people make comments expressing doubt about our approach to markets, technical analysis or active trading in general. Just to keep things in perspective, we'll take a closer look at some of these skeptics' own claims. Click here to view article.

Is There A Perfect System?

Countless vendors advertise "holy grail" systems with nearly perfect records of identifying market turning points. What would happen if there were such a perfect trading method and why don't the same kinds of things happen to profitable but imperfect methods such as ours? Click here to view article.

Measuring Robustness

What is robustness in a trading system? We all want to know how robust our trading system is, but how can robustness be quantified? This article will explain how. Click here to view article.

Expectancy Versus Accuracy

How often does a trader need to be on the correct side of the trade in order to be profitable? Is this question even meaningful? This article gives a brief explanation as to the importance of expectancy in a trading system and shows how accuracy alone is not enough to describe the efficacy of a trading approach. Click here to view article.

Avoid the Scams

It's an unfortunate fact of life that there are scam artists in every industry. While the actual products of the scam artist are never very good, scam artist marketing pitches are always of the highest quality. This article explains several common scams and how to spot them. Click here to view article.

Are Markets Efficient?

By far, the most popular theory in the study of capital markets is the Efficient Market Hypothesis. For almost half a century, the EMH has been used as a starting point for studies on investment management, diversification, and risk control. Is the widespread acceptance of the EMH justified? Click here to view article.

Implications of a Random Walk

While we most certainly don't agree with the notion that markets are random, we can't help but notice that proponents of the random walk model believe that a random walk implies that there is no systematic way to extract a profit from a truly random market. We disagree. Click here to view article.

Volatilty and Profits

Any time you hear someone talking about the markets the subject of volatility is never far behind. While we're glad the topic is getting some attention, we're a bit puzzled by the negative view of volatility that some people hold. We beg to differ. Click here to view article.

Putting the News to Use

In this article, we discuss some common approaches to news, potential hazards of using news items to make portfolio management decisions, and the proper role of news stories within the trading methodology we employ here at iSigma. Click here to view article.

Technical Analysis Misconceptions

Which type of technical analysis is better, trendlines, stochastics or point and figure charting? None of the above. In this article, we provide a basic rundown on several types of technical analysis and address the wholesale skepticism toward technical analysis. Click here to view article.

Staying on the Sidelines

In order to make money in the market, you have to be in the market, right? This article discusses the importance of staying on the sidelines from time to time as well as different techniques for determining whether to be in or out. The key to success in trading is to work from models that keep you out of the market whenever appropriate but get you in when the time is right. Click here to view article.

Money Management Traps

Sound money management strategy is a vital component to a successful trading endeavor. This article discusses several common misconceptions surrounding the issue of money management, as well as reasons such practices must inevitably fail. Click here to view article.

Selecting a Broker

In order to place your trades, you'll need to have an account with a broker. This article will provide you with some basic guidelines for selecting a broker, as well as special considerations for both the stock and forex markets. Click here to view article.

What to Expect

Thinking about subscribing but not sure if this is for you? This should give you a good idea of what you can expect as a subscriber trading with the alerts in our newsletters. Click here to view article.

Understanding the Forex Markets

For most people, trading is all about stocks and bonds. The forex market may initially seem difficult or intimidating due to the unique nature of the interbank currency market, the terminology used in forex trading and the types of instruments traded. In this article, we provide a thorough primer to assist traders who may be unfamiliar with forex trading. Click here to view article.

Using the iSigma FOREX newsletter

Getting started with the iSigma system requires minimal prior trading experience. Here the novice trader is walked through the procedure for starting his or her own portfolio in the currency FOREX market. Click here to view article.

Special Considerations

One of the biggest risks a trader may face is the lack of an action plan for certain unforseen events, such as the need to withdraw funds from a trading account in an emergency, or the sudden opportunity to commit more money to one's trading. This article covers these issues, as well as issues a new trader will face in getting on board trades which are already established in the iSigma portfolio. Click here to read article.

Glossary of Terms

The language of trading may seem like an obscure dialect to an outsider. We don't believe anyone should be kept from participating in market opportunities due to unfamiliarity with the related jargon. In this glossary, we define a few dozen of the more technical terms used on this site. Click here to view article.