One of the greatest problems most traders face can be summarized as “Not following their trading plan or strategy.” As humans beings we have several tendencies which cause this. One of the main culprits is that once we have a plan that works (or at least was shown to work in the past), we try […]
Reminiscences of a Stock Operator, one of the most popular trading books of all time, is based on the life of Jesse Livermore who was born in 1877. He made $100 million in the great crash of 1929, which depending on the gauge you use, is about $1.5 to $2.3 billion in today’s dollars. Jesse […]
The opening range breakout has long been a daily event many stock traders monitor. It is a way to let volatility subside a bit by waiting on the sidelines when the market opens (or trading another strategy), and then taking advantage of the trend that follows. The Right Stocks Before getting into what the opening […]
January 6 was an interesting day, as it directly related to several articles written recently. As the US session began today the EURUSD was moving within a triangle pattern, following a trending move down. The expectation based on the trend was that the price would break lower out of the triangle. Therefore, using the strategy […]
It was a few hours into the London session before a strong trend began. That is way I prefer not to range trade in the EURUSD. There is a high likelihood that the range won’t last very long, and what many traders view as ranges are just consolidations in a longer-term term trend (not always, […]
By creating your own strategies you will have a much better idea about how your strategies work, compared to if you just use someone else’s. You’ll know when your strategy works and when it doesn’t, which means you’re better able to filter trades and capitalize on good opportunities. Most of all, creating your own strategies […]
Triangles are one of my favorite patterns; they are easy to spot, and even using a very basic approach (as outlined in Trend Continuation Patterns) can provide excellent trades. The basic strategy is to draw the outline of the triangle around the price (when the pattern occurs), and then wait for a breakout. There are […]
A common trading problem is that if you wait too long to enter a trade–until everything looks perfect–the trend is likely almost over. Yet, if you try to anticipate changes in direction you’ll likely be too early and thus sustain losses before the market turns in your favor. If Goldilocks were a trader, she wouldn’t […]
Expected a quiet day today amidst holiday trading, but it ended up being anything but. An early rally triggered multiple stop loss order above former highs on the longer-term term charts, creating a strong rip higher followed by a slower but equally spectacular drop. Throughout the London and early-US session there were a number of […]
One of the most high probability trades occurs when a strong reversal is in effect. Few people are even aware the trend has changed direction, but as they realize it, it often creates another strong surge in price. If you know what to look for, you can get in before the crowd and ride the […]