Risk management is used in all industries to mitigate the probabilities of the loss of assets. Risk management identifies, evaluatates, and prioritizes the frequency and magnitude of the potential probabilities of risk events. Risk management implements cost effective processes to use available resources to measure, minimize, and limit the impact and damage of both common […]
What is Risk Management? Read More »
What are some good strategies to practice as trading drills to help improve your real money trading? For ideas to enhance performance into consistent habits and practices that have an impact on your trading you first must define your edge. Fully understanding your edge that creates profits comes before any plan for structuring repetitive deliberate
How to Develop Trading Drills Read More »
What is the difference between positive skew versus negative skew? Skewness is the measurement of a a coefficient that has the ability to be positive, negative or neutral (zero). The coefficient of the skew is the measurement of the magnitude of the symmetry in the distribution of outcomes of a specific data set of occurrences.
Positive Skew vs Negative Skew Read More »
A buy stop order is a manual instruction entered into your broker’s platform to enter into a long stock, option, or forex position when its price rises to a predetermined level. When the price target is reached the buy stop converts to a live market order or limit order looking to be filled at the
Buy Stop Strategy Definition Read More »
Peter L. Brandt has been a full time professional commodity and foreign exchange trader for over thirty years. He has worked as a broker to large industrial clients, traded for his own account, and was one of the early pioneers in the commodity hedge fund arena. Along the way, Brandt published a highly regarded newsletter
Peter Brandt Price Action Trading Quotes Read More »
There are two important things to consider before deploying capital with any trade, investment, loan, or business venture. Both the return on investment (ROI) and also when and if you will have a return of the investment capital itself must both be understood. Whether the potential for return is worth the risk taken depends on
Return on Investment and Return of Investment Read More »
An order is an instruction on how and when to buy or sell you send to your broker. There are several different types of orders a trader and investor can use to execute their trade based on their goals. You may want to get in at any price or out at any price. You could
What is a Limit Order, Market Order, and Stop Order? Read More »
Here are some of the most common questions I get as a trader. What can I buy now to make a lot of money? How can I make a lot of money in the markets? What is the best stock to buy now that will definitely go higher? Will the market go higher? Will the
That’s Not How This Works Read More »
Convergent trading strategies look for prices to revert back to a mean. This can mean that two assets that are extended away from their historical correlation will eventually regain their past relationship. Convergent can also describe a trading style of selling short an overbought asset or buying an oversold asset believing that the price is
What is Convergent Trading? Read More »
Charts are visual representations of the prices where buyers and sellers agreed to trade over at different periods of time in the past. In markets there is a buyer and seller for every trade execution, a stock quote is the price where the buyer and seller agreed and made a transaction. Buyers and sellers are