A trading system with big wins and small losses is actually easier to be profitable with than a high winning percentage system. It allows the trader to capture a trend for big wins when the opportunity presents itself. Well positioned stop losses and the use of trailing stops can create an asymmetric trading […]
What I Look For in a Trading Methodology Read More »
This book is in the Market Wizard format as the author interviews successful and profitable traders at many stages of their journey. Most traders in the book trade six figure accounts and some are millionaires. Many of them trade penny stocks, but are sensitive to the volume and understand the dangers involved in that market,
Book Review: Momo Traders Read More »
This is a GUEST POST by Steve LeMoine @Turtle_Follower One of the biggest steps I took in becoming a more robust trader was learning how to deal with uncertainty. I wrote a post about something I call the Uncertainty Principle which I urge you to check out…after reading this post of course. In a nutshell
Take the Guesswork out of Trading with this Technique Read More »
Day traders can lose money in markets with low volatility. Trend followers don’t make money without a trend and lose money in whipsawing markets. Swing traders can’t make money in tight ranges. Investors lose money in bear markets. Option buyers need trends to make money, and option sellers need small moves in prices to make
A Big Obstacle for Traders: Time Read More »
Create asymmetry in your trading by using stop losses. Profitable trading only happens by making more money than you lose. Big losses are the main cause of not being profitable. Eliminate big losses by cutting your loss when proven wrong. Have a great risk/reward ratio on entry. Give yourself the potential to make two
10 Habits of Highly Profitable Traders Read More »
With the increase in volatility and faster price action in the markets caused by the volume and speed of high frequency traders there are ways to adapt our trading to stay out of much of the randomness and chaos caused by these new market participants. Here are some things I have started to do more
5 Ways to Dodge High Frequency Traders Read More »
There is a big difference between trading up trending markets versus range bound markets. Different signals are profitable in different markets. In up trending markets you can buy high and sell higher profitably, in range bound markets you are rewarded for buying weakness near support and selling near resistance. In up trends a price gap
Up Trend Signals Vs Range Bound Signals Read More »
Once we have a proven system, our system’s profitability is not based on our personal ability to trade it. The market environment of trending, range bound, or volatile is what makes our method make money or lose money. Sometimes, we have a perfectly good system and lose money because our method is not viable. A
10 Signs the Market Is Just Not That Into You Read More »
The right mindset Your have to be able to manage your emotions. You have to have faith in your ability to trade your plan with discipline. You have to do enough homework that you will have faith in your system and your prospects of being profitable. You must manage your stress so you don’t make
The 12 Requirements for Profitable Trading Read More »
This is a GUEST POST by Bob Loukas. Follow him on Twitter here. I’ve been of two minds recently regarding the current Cycle picture in equities. So this week, I focused more attention on finding secondary evidence to support a more definitive position on direction. As I suspected it might, my research provided an almost
You Don’t Know Where the Market is Heading! Read More »