Many new traders enter into trading with the goal to trade full time for a living and quit their full time job. Trading is a professional endeavor that requires the same amount of effort that any professional career takes. The low barrier to entry is what lures people into trading thinking it is easy. Most […]
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A pip calculator will help a trader determine the value per pip for a currency pair, this is to manage position sizing and risk per trade. A trader needs the currency your account is denominated in, the currency pair that is being traded, position size of the trade, and the exchange rate asked to calculate
Here are 65 lessons I learned after spending thirty years trading and investing in the stock market from 1991-2021. A trend can go farther and longer than I ever expect. The best traders are open-minded and flexible in their trades. For most traders less trades is better than more trades, focus only on the best
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To make money in the markets you need to be trading as a business. Hobbies cost money, businesses make money. A business has a plan, a process, and a system. A business has customers that it sells products to for more than their cost. How a new trader approaches trading and the markets will determine
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Bayesian statistics is a systematic process for describing educated guesses during uncertainty using mathematical probability. The Bayesian interpretation of probability expresses degrees of belief in a specific event happening. The amount of belief can be determined by prior knowledge about an event, like results of similar events in the past, experimenting about potential outcomes, or
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Do you really understand what risk is? What is risk? Risk is a situation involving exposure to danger. Risk is to expose (someone or something valued) to danger, harm, or loss. – Oxford Languages In trading risk management is using processes to control, minimize, and protect trading capital from the many dangers in the financial
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There is some negativity in society about being a trader, in this post I would like to explain the positive side of being a trader and why a trader should be proud of what they do. Some say “A trader doesn’t create or produce anything”. That is wrong. In the history of civilization it was
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This is a guest post by Michael Dehoyos. Trading can be a daunting prospect to someone completely new to it, which is why so many people trust companies to invest and trade for them. However, by giving over your portfolio to a company, you’re also giving up a certain level of control over your own
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The Kelly Criterion is a scientific gambling method using a formula for bet sizing that mathematically calculates the proper position size for placing a bet based on the odds. The Kelly bet size is calculated by optimizing the projected value of the wealth logarithm, which is equivalent to maximizing the expected geometric growth rate of
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A retracement on a chart means that there is a temporary pullback on the direction of the price action against the longer term trend. A retracement can return to a previous vertical support level like an ascending or descending moving average or a Fibonacci level while a reversal breaks a key previous support or resistance
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