Category Archives: Trading Education
S&P 500 Completes megaphone pattern
Back on October 13, when the stock market was in free-fall, I prepared this chart showing a potential megaphone pattern. With major indicators (such as the MACD and stochastics) looking decidedly bearish, the idea that a rally would soon return the S&P 500 to the 2,030 area seemed crazy: Three weeks later–ding-ding, we have a winner!… Read More »
Traders: When to be Flexible & when to be Rigid
Traders should have a very flexible mindset about which way a trade can go when they enter it, but be very rigid about taking their stop loss when it is hit. Traders should be very flexible on profit expectations during each market cycle but very rigid about following their robust method during each cycle. Traders… Read More »
Emotions That Are Hazardous to Trading
As humans, we can’t totally divorce ourselves from emotion, but if we can learn to control them better, we should have better trading results. The psychology of investing not only affects individual investors but also affects the market as a whole. Many investors often underestimate or are unaware of the affects that our emotions have… Read More »
Trader’s Assest
The game taught me the game. And it didn’t spare the rod while teaching.” -Jesse Livermore Trading Losses: There are two types of losses, one loss is caused by the market simply not being conducive for the profitability of your system. The other loss is due to your lack of discipline causing your system not… Read More »
Thinking of an amateur trader
India Stock market are going through a Bull phase and is the best performing market for 2014. As market keep rising every day many traders are getting attracted towards it making fast bucks. Today we are discussing the thought process of new trader and the corrective steps which traders should start implementing before their trading… Read More »
Things to keep in mind while trading
Do not trade because you want to trade, trade the system signals not the noise of Analyst. Wait for a reason to trade. Trading is always not about making money, many times it is about preserving your profits and waiting on sidelines for trade set up to give entry. Stop predicting about a top/bottom and… Read More »
How to Lose Money in Bull Market
” There is only one side of the market and it is not the bull side or the bear side, but the right side.” – Jesse Livermore Be a bear in a bull market. Keep shorting a bull market and see what happens. LOSSES. Wait for a deep pull back that never comes as the market goes higher and… Read More »
Checklist to be Profitable trader
Capital flows from those who fight trends to those who follow them. In the long term money flows to those who manage risk and are able to hold on to their profits from those who don’t manage risk. Traders that persevere through the learning curve stick around long enough to make money from those that… Read More »
Why 90% of the Mental Game is Your Trading
90% of the mental game being trading well; So here are three trading practices that reliably lead to emotional disruption: 1) Poor risk management – Oversized positions; holding positions that are more correlated than you realize; failing to clearly define and trade a risk/reward relationship for each trade–all of these create outsized losses, which in… Read More »