Understanding the mathematical principles of profitable trading can help a trader understand how to create a positive expectancy trading system with an edge. The understanding of the underlying math can change how you look at your own trading and see what really matters: risk per trade, win rate, losing streaks, drawdowns, positive expectancy, and growth […]
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Payment for order flow (PFOF) is the payment of up to one cent per share, that stockbrokers can receive from market makers in return for the broker routing trades for their customers to that market maker. It has been a practice under heavy criticism from retail traders being called a kickback and front running orders.
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There are many different types of traders in the financial markets. They trade different markets and on different time frames. Here is a list of types of traders on different time frames. Day traders: Day traders open and close their trades inside regular market hours. Day traders avoid the risk of overnight gaps but can
This is a guest post by Sami Abusaad of @T3Live When the market turns unstable, what do you do? Panic sell? Seize the moment and start gambling? If you want to wade through the treacherous waters of a volatile market and come out with your P&L — and your dignity — intact, you need
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This is a guest post by @PattensWizard on Twitter. Technical analysis is the study of prices over time and the analysis of chart patterns formed by price movements. So, a relevant question that often traders ponder is “What timeframe should I choose?” Another question that traders also frequently ask is “Why does trading timeframe matter?”
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Arbitrage is the ability to profit by both buying and selling the same asset in two different markets at the same time to profit from any difference in the price in two different places. Arbitrage takes advantage of any variations in prices of the same or similar financial assets listed in different exchanges or in
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What traits separate the minority of profitable traders from the the majority of unprofitable traders in the markets? Here are the 12 key traits I have seen and studied over the past three decades in the financial markets that separate successful traders from the unsuccessful ones that don’t make it. From the start the traders
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In investing and trading, diversification is the process of buying positions with capital that are not 100% correlated in price movement during most market environemnts. Diversification can be as broad as investing in different types of assets or just in equities but in stocks in different sectors, market cap, or countries. In trading, diversification can
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Qualitative analysis seeks to understand human behavior from the perspective of the researcher of information. It looks for the dynamic in an integrated reality. Information can be gathered through observation, historical research, and interviews of human behavior. Data is analyzed through descriptions and themes. Data is translated and reported through the perspective of the researcher’s
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What is a piker? In North America a piker is term for a gambler who makes only small bets. It is a stingy or cautious person. In Australia and New Zealand a piker is a person who withdraws from a commitment. (Definitions from Oxford languages). Another claimed origin of the term is Pike County Missouri,