Between the lines

European retail sales return to growth at the start of 2014 – Markit as consumer confidence in Switzerland reaches a recent high

Asian markets were calmer in the overnight-early morning trading session as Australian equities have been buoyed by strong economic data, but the overall mood has improved from a  cautious start in Europe and in the futures markets as traders await monetary policy updates out of Europe today as well as Friday’s US NFP jobs report. […]

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Recording the results of our trades and why it’s so important to keep records

How’s your Sharpe ratio* at the moment, or your Sortino ratio*, are they where you’d expect them to be, perhaps after a full twelve months of trading using your revised (tweaked) trading strategy? Even with that one introductory sentence we know a significant percentage of our readers will already be lost… However, fear not dear

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What time frame to trade and why it’s important to match it to your trading style and overall trading strategy

There are many contentious views with regards to trading off certain time frames. Many experienced traders will suggest that you should be able to spot price action across any time frame as it develops from its beginning, especially if you are what we often refer to as a “price action” trader. In theory, as a

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Getting back into the game after an absence; how getting back into trading should prove to be a profitable decision

It’s quite a common occurrence for us to take breaks from trading. In point of fact in many ways it can be a very healthy and cathartic exercise to simply stop trading, to re-evaluate your personal circumstances, take a ‘time out’ and come back at a later date. Some traders will take years off from

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The parabolic stop and reverse (PSAR) – joining the dots with the king of indicators

OK, perhaps we’re exaggerating with the article title there, but if there’s one indicator available from our extensive library that can help swing/trend traders in their quest to follow price, then the PSAR is surely it. Those simple dots that appear above and below price, if used correctly can prove to be one of the

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How to cope when the markets conduct a hand brake turn with very little in the way of warning and how to exercise patience

Regular readers will notice that we’ve used the strong bullish momentum move on the DJIA, witnessed breaking to the upside on or around December 18th, as an example of how fundamentals work in our markets. At the end of the FOMC meeting in December the Fed announced that the ‘taper’ was now on. They announced

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Walking down a painful memory lane; remembering the first trading account you ever blew up and what it taught you

Revisiting some of the costly mistakes we made as novice traders can prove to be a cathartic and healthy exercise. Particularly if the mistakes taught us valuable lessons and helped nudge us in a better direction, causing us to eventually find a better place in relation to our trading. Blowing up an account, or losing

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How cutting your losers early can dramatically improve your bottom line

If we assembled a group of traders’ together in a conference room, ensuring they were all of different levels of experience and success and then we posed a few basic trading questions to them, the answers we’d receive back would be fascinating. One critical question we’d ask would be regarding the ‘keystone’ to their trading

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