This is a Guest Post by Alex @MacroOps which was posted originally at: Flying Too Close To The Ground and is posted here with permission. It’s not how close you get to the ground, but how precise you can fly the airplane. If you feel so careless with your life that you want to be the world’s […]
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We talk a lot about the importance of trading plans, but it has occurred to me that plans may be where many of us are coming up short. Merriam Webster defines a plan as a set of actions that have been thought of as a way to do or achieve something, or something that a
Why Successful Trading is Like Defensive Driving Read More »
Trading is not really all about stock picking, predictions, and opinions. It is not even just about a winning system. Yes, first you have to understand how to trade and put the odds in your favor of winning, but that is not enough. You must also add in risk management so when you lose several times
3 Dimensional Trading Read More »
Trading Bias Definition: A trading bias is the tendency that leads traders and investors to follow a predetermined path in a trade or investment even when it appears they are wrong from a fundamental or technical perspective or both. A bias about a trade occurs when there is a loss of perspective because their opinions or predictions are held even
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Trading with no stop losses. You can’t control how big your profits are, the market will trend as far as it does. However, you can control and limit the size of your losses with a stop loss and a carefully managed positions size. Not having an exit plan if you are wrong can be very expensive when
7 Expensive Things for Traders Read More »
This is a Guest Post by Alex @MacroOps which was originally posted at Lessons from a Trading Great: Bruce Kovner. Bruce Kovner retired in 2011 from Caxton Associates, the hedge fund he founded and ran for 28 years. Over that time the fund returned an average of 21 percent a year since its inception. In comparison,
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This is a Trend Following Guest Post by Michael Melissinos Originally Posted April 19, 2016 on his Blog We can approach the markets many different ways. In this article, I’d like to illuminate the trouble with holding onto our investments too tight — that is, not giving them the necessary rope to fluctuate and evolve into a big trend.
One Simple Rule Makes All the Difference Read More »
Many people that are critical of active stock market operators and believe that winning traders and investors are more lucky than possessing of skill have not thought through what the long term winners have in common. The Trend Followers and Market Wizards profiled in best selling books are not simply due to survivor bias, they have a
Managing Risk is an Edge Read More »
Do you still have days when you are 100% sure about a trade. You just can’t lose, the stock that is dropping was a real buy and it has already fallen a great deal so it could not possibly fall any farther. Can it? So you wait and then plunge in, you can’t lose so why
Your Most Dangerous Trade Read More »
“The Holy Grail is not what you would expect it to be. It is something that is different for each person. It’s a hidden secret you have to discover for yourself but it is obvious once it is realized.”- David Mobley, Sr. Most new traders go on a quest for “The Holy Grail” of trading.
The 5 Holy Grails of Trading Read More »