While there are many mistakes that can hurt a trader, these are three big ones. Get a handle on these and many other aspects of your trading will fall into place. Risking Too Much on Each Trade I address risking too much a lot in my articles because it is so important. I recommend not […]
Friday May 16 has been a pretty quiet day (so far), but that may set up some good trades next week. Here are some trades I have on, as well as a few set-ups I am waiting for. These are swing trades in the forex market, so I am using stops and targets. Trades are […]
Many traders think that if they can predict where the market is going next they will be a profitable trader. This is a fallacy. Trading and analysis are different. I should know, I am a Chartered Market Technician–a supposed analyst, and I do some analyst work–but when I trade I shut that aspect of myself […]
I was going through a forum the other day and reading the questions from new traders. One topic which came up fairly regularly was how the new traders had lost one, or a few, small deposits. Traders had typically deposited between $100 and $1000, and through trading it was now gone. This type of start […]
Based on discussions and from seeing the strategies many novice traders are operating off of, there is one thing that stands out. Successful traders are getting out of their trades just as novice traders are getting in. Successful trades look for open spaces where the price can run, and when the price looks like it […]
The Vortex Indicator helps isolate trends, which can aid new traders in determining when a new trend is likely underway. The Indictors is based on a two lines–an uptrend line and a downtrend line. When one crosses above the other it indicates that trend (up or down) has taken over. It is also used to […]
Any of you who know me and my writing will know that one of my favorite things to do is surf the web looking for interesting binary options products, services, signals and strategies. More often than not what I find isn’t worth the electricity needed to power the servers much less your time or mine […]
Which has a greater chance of happening? A stock going up? A stock going up because hedge funds are buying it in the belief that earnings are going to be much higher than expected? In trading we deal with probabilities, yet humans, even many statisticians who (are supposed to) know this stuff inside and out, […]
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 […]