There are many clichés regarding trading that (on the face of it) appear extremely easy to implement, but in reality are very difficult to put into practice. “Letting your winners run” and it’s equally important correlated phrase; “cutting your losses early” are two of the most widely used clichés we hear in trading discussions. Yet […]
In several of our recent blog entries, when we’ve focused exclusively on trading methods, we’ve highlighted the recent DJIA move on December 18th 2013 as a perfect example of a sudden and violent break to the upside as a consequence of a fundamental policy high impact news event. Just a short re-cap; The USA Fed,
Discussions regarding how much of our account we should risk on an individual trade are as old (and lively) as the modern day trading industry. Many experienced, successful traders and analysts will suggest a fixed amount of risk, whilst some will suggest that it should be variable, or both. But one aspect of trading that
In the early stages of our career and relationship with trading we endure many baptisms of fire. One of the most exciting ‘trials of trader life’ we endure is shortly after we discover technical analysis. For many of us our discovery of technical analysis begins with someone, either in person, in a trader school environment,
Is technical analysis a fallacy, do we see what we want to see? Read More »
Regular readers of our blog, who subscribe to our weekly Sunday evening “is the trend still your friend?” articles, will have noted that we use several of the most popular indicators in our technical analysis. They are (in no particular order); PSAR, Bollinger bands, MACD, DMI, stochastic lines, RSI and ADX. These seven offer up,
Trading with Bollinger bands, what are they and how to make the best use of them Read More »
There are many reasons why we become traders; we could be looking for a more exciting destination to place a proportion of our savings. We may be looking to develop a new investment skill; we may need to generate a small part time income in order to cover a few extra bills. Or ultimately we
What kind of account size do you need to give FX a real try? Read More »
There comes a time, very early on in a new trader’s development, when thoughts will turn to the subject of automation. Whilst automating trades can have many benefits, which we’ll cover in this article, traders must be absolutely 100% sure that they’re fully committed to and have absolute unwavering confidence in the method element of
Should I stay with manual trading FX or move over to automation? Read More »
Each trading day, in our various articles and blog entries, we discuss the medium-high impact news events and any fundamental policy decisions that may move the market. Once traders are past the apprentice stage they’ll quickly realise that it is in fact fundamental issues and news events that move the market ahead of any ‘lines
Which news events actually move the markets and how can we use them to good effect? Read More »
There are many aspects of FX trading that elevate us beyond our base level understanding of the usual mathematics involved. These aspects can spark the curious and creative elements which exist in all of us. The use of Fibonacci is one such creative phenomenon that, when you begin to examine and research it in more
Impatience Why are we so impatient when it comes to trading? We set out in our trading plan exactly when, why and where we’re going to take trades. And yet in the ‘heat of battle’ we’ll close the trades too early, or we’ll enter too early, which can have the effect of seriously damaging our
