We typically view risk as how much capital we stand to lose if we lose on a trade. This is our trade risk. I don’t risk more than 1.5% on a trade, typically less than 1%. If you are trading with a $5000 account, and risk 1% that means you can lose $50 on that […]
A little more activity in the forex market lately as a number of pairs have broken out of consolidations and provided trend trading opportunities. First let’s look at a recent trade, since it is the same set-up I am watching for in a couple upcoming trades. GBPAUD Last night I took a short in the […]
Becoming a successful trader will require both patience and persistence. In unsuccessful traders these traits are exhibited, but are focused in the wrong direction. When these traits, which can be learned, are applied in the right way, your odds of becoming a better trader dramatically improve. How Unsuccessful Traders Use Patience and Persistence If struggling, […]
If your desire is to become a consistently profitable trader, trades can’t be made on random impulse, guesses or hunches. Trading is methodical and calculated; part of a process which is repeated again and again. Not a single trade takes place outside this of this process. Below is my process for taking swing trades, which […]
I began my review of this website as I always do, hoping for something good, on the hunt for something scammy and as impartial as I can be. I have to admit that I am beginning to get a little biased though, I more often than not find a binary options scam than I do […]
Many binary options traders got started trading in the forex markets. They shifted to binary because the mechanics of trading were simpler, not because the analysis was any different. For that reason, the analysis is the same, it makes sense that a solid forex strategy would work just as well for binary options. This is […]
Williams %R is an indicator similar to the Stochastic Oscillator, but calculated a bit differently. Developed by Larry Williams the indicator reflects the difference between the high, low and the current price over a look back period. Generally that look back period is 14, which could based on any time frame, such as 1-minute, 5-minute, […]
The last few days have produced some bigger movements, and whether swing trading or day trading I always prefer to trade in an environment where the price is moving strongly. When price can sustain its direction, it is much easier to make money than when the price is barely moving and grinding back and forth. […]
For most traders Andrews Pitchfork is a technical analysis tool you may have applied to your chart once or twice, fooled around with it, but couldn’t really understand what it was supposed to do. Well, basically it provides support and resistance levels, and can therefore be used to confirm trends and spot reversals. Andrews’ Pitchfork […]
One of the first things many traders learn when they begin studying technical analysis is that the market moves before the economy. So why is it then, even when traders know this, that when good economic comes out traders assume the market will go up. This is the “action-reaction” model: if good economic news come […]