The Traders Journal

Gatis Roze
About the authors: , CMT, holds an MBA from the Stanford Graduate School of Business and is a past president of the Technical Securities Analysts Association (TSAA). He is also the co-author of Tensile Trading: The 10 Essential Stages of Stock Market Mastery (Wiley, 2016). A full-time investor for over 25 years, Gatis has taught sold-out investment courses throughout the Pacific Northwest and beyond since 2000. Learn More

Grayson Roze
is the author of Trading for Dummies (Wiley, 2017) and Tensile Trading: The 10 Essential Stages of Stock Market Mastery (Wiley, 2016). He has worked in the financial services industry for StockCharts.com since 2012, and now serves as the Business Manager for the company. He holds a Bachelor's degree from Swarthmore College. Learn More

Latest Posts

The Traders Journal

100% of Investors from Lake Wobegon Are Above Average

by Gatis Roze

Ninety percent (90%) of Americans believe that they are above average drivers.  Multiple studies have corroborated this impossibility over the years.  I’m certain that the equivalent surveys of American investors would yield a similar fanciful number. It reminds me of Garrison Keillor’s radio show featuring Lake Wobegon — the fictitious midwestern town where all of the children are above average.  My point being that most drivers and investors — like those Lake Wobegon kids — believe they are exceptional.  When you have a Ferrari for a brain but brakes made for a Read More 

The Traders Journal

Charts I'm Stalking: Action Practice #18

by Gatis Roze

So, how did you stack up the equities of the Dow 30 based on Money Flow in Action Practice #17? The first question you should have asked yourself is “what is my personal investing timeframe?”  Clearly, a day trader would not analyze money flow the same as a position trader or as an intermediate-to-long term investor.  The second suggestion I would make is to revisit your own knowledge set about Money Flow.  An ideal place to start is the StockCharts glossary. Read More 

The Traders Journal

How Not to Lose Sight of the Forest (the Market) by Focusing on the Trees (Individual Equities)

by Gatis Roze

Have any of you ever found yourselves so overly focused on your individual positions that you are missing the market’s essential big picture?  For profitable investing, maintaining a birds-eye view is imperative. This is what asset allocation is all about, and from the academics, we know that this provides the “biggest bang for your buck” in the investing arena. Many investors’ backgrounds are such that they have been trained in their professional lives to focus on the individual details  The downside of this is that by devoting a disproportionate amount of their time and Read More 

The Traders Journal

Charts I'm Stalking: Action Practice #17

by Gatis Roze

This is all about your fiscal fitness and future financial fate.  Pay attention! I’ve written before about the indisputable number of academic studies proving asset allocation is the highest leverage activity that individual investors can focus on.  Although this blog will touch upon this, it will be focused instead on the principles of CORE & EXPLORE investing.  Though popularized and championed by Vanguard’s founder John Bogle, its origins actually date back to published research done by Schwab in 2000. John Bogle has been famous for Read More 

The Traders Journal

The Albert Einstein Approach to Stock Market Investing

by Gatis Roze

Albert Einstein famously said, “If I had one hour to save the world, I would spend 55 minutes defining the problem and five minutes implementing the solution.”   If you were in a life threatening situation and had only one hour before it proved fatal, what would you do?   Einstein said he’d spend his time wisely asking probing questions to understand the problem in depth.  Having done that, he’d only need 5 minutes to address the issue.  Many new investors I meet in my classes totally flip around Dr. Einstein’s approach.  They have Read More 

The Traders Journal

Paul Merriman's Essential Investor Challenge Questions: The Answers by Gatis Roze

by Gatis Roze

At a May 20th presentation to the Seattle chapter of the AAII, Paul Merriman confirmed to me his standing as a respected elder of investment management.  Since selling his multi-billion dollar advisory firm in 2012, he has been running a financial education foundation.  His motto  “knowledge is power” is an accurate portrayal of his mission, and parallels my own efforts to educate and empower individual investors these past 20 years. What makes Merriman’s motto so unique is that it’s backed up by a depth of experience few have attained and delivered honestly in a Read More 

The Traders Journal

Essential Rules to Share with Your Friends: The Financial Simpletons

by Gatis Roze

I had a shock recently.  I met a couple who was in the midst of what I considered to be a personal financial coronary, yet they were totally oblivious to the perils facing them. Both husband and wife were professionals with advanced graduate degrees. Despite their intelligence and educations, neither of them had ever taken the slightest interest in any kind of financial education or investing. They’d led successful careers, yet they were absolute simpletons when it came to anything financial. For the sake of this analogy, I’ll call them Fred and Wilma — a nod to the Flintstones Read More 

The Traders Journal

Charts I'm Stalking: Action Practice #16

by Gatis Roze

So you’ve heard about Exchange Traded Funds (ETFs).  You’ve heard that they are cheap. You’ve heard that mutual fund managers cannot outperform ETFs. You’ve decided that a chunk of your nest egg should be in Healthcare. A friend suggested XPH because it holds stocks like Eli Lilly, Merck and Johnson & Johnson — companies  you’ve heard of. Buy, Buy, Buy!!  Whoa — slow down, partner. Action Practice #15 was about exactly this scenario. I presented you with six options from which to choose. Yes, these six are all Healthcare ETFs, but a closer examination will point Read More 

The Traders Journal

My 3-Prong Recipe for the Safe Growth & Outperformance of Your Portfolio

by Gatis Roze

There is a seismic generational displacement happening in the investment landscape. Many investors are shifting their assets into indexes and ETFs as they move away from stocks and mutual funds. Due to this shift, a number of investment firms are having to make enormous changes themselves in order to remain relevant and profitable. I maintain that these investors’ misplaced beliefs that individual investors cannot outperform indexes and that active managers are incapable of outperforming passive managers (after fees) will cost these investors dearly in the long run. Let me label it for Read More 

The Traders Journal

This Investor's 5 Personal Passages

by Gatis Roze

I’d like to paraphrase a fishing analogy.  Show someone how to invest by following a winning trading methodology and he/she will be happy for awhile.  Teach someone how to think effectively about trading and he/she will be profitable for a lifetime.  All too often as investors, our focus is on indicators, price action and our interpretation of fundamentals.  We enter our trades based on data, but if we see our position move against us and we lose money, what then?  We go back and review our system.  The missing link here is that we must figure out ourselves Read More 

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