The internet provides a massive resource for gathering information on brokers, markets, strategies and financial education. This is a positive thing, as it allows almost anyone with patience, discipline a strong work ethic to compile a trading system that works for them. With so much information though–and misinformation–it is important to remember that no one […]
While I do watch for price breakouts, I am always on the lookout for false breakouts…because I want to trade those more. Most traders view false breakouts as a bad thing, a market phenomenon that cuts into their profits or increases their losses. I propose you look at false breakouts as an opportunity. In my […]
Forex pairs are often the perfect assets for trading shorter time frames. This is because they tend to trade in ranges as the competing central banks jockey back and forth for dominance over the global economy. These ranges tend to last for extended periods and can be quite narrow, especially when compared to other assets […]
Most day traders know about limiting the risk of their trades, but capping daily losses is a practice traders could also benefit from. By capping risk on each trade and day, the trader is taking steps to make sure that no single trade or single day ruins their month, or worse yet, their account. To […]
Traders are always looking for the next winning trade, but often it is the trades not taken that ultimately determine the success of a trader. Some days have strong price trends, and the potential for winning trades–if you trade in the same direction as the trend–is quite high. Other days the price action is not […]
Too often I hear of traders boasting of how great their trading system is. How it generates huge profits with guaranteed signals. Just as often I hear these same people tell stories of how they lost their ass and wiped out their accounts. If these traders had such a fool proof system then how come […]
Anyone who watches the economy and/or trades currencies will tell you that the world’s central banks have a lot of power to move the markets. It only makes sense if you think about it. Market movements are based on a combination of underlying fundamentals, market sentiment and technical analysis. Underlying fundamentals include key interest rates […]
Day trading stocks for years I found I always traded best in the morning, then usually gave some profits away in the afternoon, only to make some back at the close to basically finish up where I was at in the morning. It took me years to realize that trading all day is not a […]
Fibonacci Retracements are a very useful tool and one that is part of my regular technical analysis. This tool is one based on thousands of years of mathematical observations originating in ancient Indian mathematics. Although he did not invent the number Fibonacci did a lot to bring it into widespread knowledge in middle aged Europe. […]
Divergences are an important tool for binary options trading and one employed by many intermediate and advanced traders. This tool can form in several ways and on several different indicators but the basic theory is the same for all. In fact, divergence theory is so well though of in the trading community that there is […]