I'm sure many of you have experienced this before. Me included.
The market moves against you, so you extend your stop loss. The market moves against you again, so you extend your stop loss again, thinking that the market will reverse in your favor.
We all know what happened next. The market never reversed and you lost a huge chunk of your capital.
It is very...
Hello everyone:
I want to go over an important topic of scaling into the market. This is something more advanced in my opinion, and should be used cautiously when applicable.
First you will need to understand that it's important to fully accept the risk when you try to scale in a trade.
Essentially you are doubling down on a trade when you do so. What is your...
What currencies are being traded in what percentage, what pairs, where are traders located, and more.
Total daily volume in April 2019 was 6.6 billion usd.
From the 2019 BIS triennial survey
www.bis.org
I do not know anyone in any field that is successful by doing everything.
The average hedge fund is diversified, sure, but first of all they start in 1 area then diversify by learning more and hiring people, and second they underperform, they diversify to reassure investors but this is bad. You'll sometimes see them on tv acting knowledgeable. They are not high...
How do you document your trades? In a spreadsheet? In a trading journal? Directly on the chart? How much is too much? How little is not enough?
I say you need to document enough to tell the story properly. Every trade tells a story. As with all good stories you have a protagonist and an antagonist. Good guys and bad guys. The hero and the villain. And then,...
Investing for Beginners 101
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How do you build your investment fund?
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There is no silver bullet to it, and it is easy when you build it across an extended period of time.
Introducing the power of Dollar-Cost Averaging (DCA)! One of the easiest ways to get started.
DCA is an investment strategy...
In my earlier article, " Proving Your Trading System with Backtesting ", I demonstrated how, in the Futures market, you could backtest your trading system, see what works and what doesn't, change your variables, and rinse & repeat until you have a winning trading formula.
You GET this winning formula by torture-testing (ahem, *back*testing) your system under...
Hi traders:
Hope all is doing well. I want to do another quick educational video on price action analysis.
Many have asked me to elaborate on this topic, and I thought video is the best way to do so.
So basic understanding of price action analysis is that after a strong impulse phrase in the market, we will get a period of consolidation (correction) before the...
Hello, in this post I will be talking about Forex Pair Correlations. A problem new traders frequently find themselves in is opening/having positions that are contradictory. I will elaborate on that but for now, let's understand first what correlation is. A correlation is a statistical relationship which means that when A moves a certain way, B will move a certain...
Hello, in this educational post I will be talking about why having 2 or 3 TP targets is good. As an example, I will be using one of the trades I have running currently on EURUSD. My initial target for this short position is to hit the lowest point of yesterday and it was going well until a pullback happened which is currently happening right now and probably...
Hello everyone:
In this educational video, I will discuss how I utilize multi-time analysis in my trading.
-What multi-time frame analysis does is to help us to get more clarity on what the overall market is doing from a top down approach.
-Analysis should always start on the higher time frames such as Monthly/Weekly/Daily.
-Then, drop down to the lower...
In my earlier article, " Proving Your Trading System with Backtesting ", I outlined the HOWs and WHYs of backtesting. Does your trading system work under all conditions? Under what conditions might it *not* work? Can you remove those instances from your plan? Under what conditions might you *improve* your win rate? In another article, " The Unexamined Trader ",...
Hi everyone:
In this quick educational video, I will go over how I incorporate “forecasting” in my trading, and how that helps me to be a better trader overall emotionally and psychologically.
Couple things you “forecast” prior to the actual entry:
1. You should draw out the different possibilities on the price’s movement.
Different possible scenarios if...
Wouldn’t it be great to see the future? To see where turning points in price will occur with a high degree of accuracy? To see if a trading system that you developed or bought or learned actually works? Well, you can, with a method called BACKTESTING.
Backtesting performs three important functions:
1: It helps you IDENTIFY the reliability / win rate of your...
Here is another chart, giving Money Man’s view on the market, followed by some constructive escapism or another set of glasses to try on.
Money Man has stretched some indoctrinated traders who read these posts quite far and here he is going even further. He is aware of the negative ‘modern’ view on metaphors. Is it not strange that this is exactly how many...
I just want to share what I find today about consistency. Many of you might already know what it means to your trading.
I have spend many months from a beginner in this trading world, to... still a beginner. I have always question myself when will I become a consistent profitable trader. How can I tell if I am one?
Mark Douglas suggest that we take a 20 trades...
Hello traders,
Introduction
How many times did you find a perfect strategy giving great results in backtest but wasn't working for LIVE trading?
This effect is due to "overfitting" your past signals giving great historical results in a past environment.
Overfitting means you're forcing the results to look great; hence not realistic; knowing the historical...
