History Andrews developed his own method of predicting where price is going to go in the market. He said that his method will predict with 80% certainty where price is going to be. He originally called it the Median Line Method. One of the most popular Median Line Method tools were the reaction lines. These… Read More »
This is the message one of my students wrote to me “I don’t get it. I know there is good money to be made in trading (I see people doing it) and I’ve known success before. It’s not like I don’t know what a winning mindset is. I’ve proven myself before. Yet trading success still… Read More »
A solid trading plan is the cornerstone of your trading business. Unfortunately many traders think that all they need is a trading strategy. This is NOT the case! Let me explain the difference between a trading strategy and a trading plan. A trading strategy tells you when to enter and when to exit trades. A… Read More »
1. Do not be overly concerned about whipsaws a good trend pays for them all. A whipsaw is when you enter a position but get stopped out quickly when the market reverses opposite to your position. If you are a trend trader this may happen many times in a row in a range bound market. … Read More »
The fear of being wrong: Traders fear being wrong so much they will hold a small loss until it becomes a huge loss. Even adding to the loss in the hopes of it coming back and getting to even. Don’t do this, holding on to a loser after it hits your predetermined stop loss is… Read More »
We have RBI Policy tomorrow, markets are going to be volatile. Most of traders will be lured by the idea if one trade goes right i can make big money but one wrong trade can wipe off also. In trading activity alone does not make money, the right activity at the right time is what… Read More »
What is the difference between Sachin Tendulkar and Virendra Shewag, Both have class of their own, infact Shewag palying style is far better than Sachin instead of this Sachin is remembered as All time Greatest whereas Shewag has been forgotten by most of the Cricketing fraternity. The Big Difference is Consistency. This leads me to… Read More »
1. All successful traders use methods that suit their personality; You are neither Waren Buffett nor George Soros nor Jesse Livermore; Don’t assume you can trade like them. 2. What the market does is beyond your control; Your reaction to the market, however, is not beyond your control. Indeed, its the ONLY thing you… Read More »
Trading is a war and there may be few battles which may get lost, Losing a battle does not means you have lost the war. Trading is not about one day, one week, or even one year. Trading is about taking money out of the markets over and over again, consistently. When I have bad… Read More »
In Continuation with Previous Post Rule No. 7: Keep It Simple I’ve found that the best trading systems are simple. It’s easy to understand why they work and it’s easy to follow their rules. The more complicated a system is, the more room for error there is. That’s probably why I’m such a fan… Read More »