1. No Trade Plan During my Training Classes more than 90% of the traders that I come in contact with have no trade plan. They do not know what to do if they are wrong and they do not know what to do if they are right. Most of them are gambling not trading. Trading… Read More »
In Continuation with Previous Post Overbought/Oversold Overbought and oversold levels can be used to identify unsustainable price extremes. Money Flow Index (MFI) above 90 is considered overbought. Money Flow Index (MFI) below 10 is considered oversold. As the saying goes Overbought market can remain overbought for extended period of time. Strong trends can present… Read More »
Overview The Money Flow Index (“MFI”) is a momentum indicator that measures the strength of money flowing in and out of a security. It uses both price and volume to measure buying and selling pressure. Created by Gene Quong and Avrum Soudack, It is related to the Relative Strength Index, but where the RSI only… Read More »
Source: Shared by Blog Reader Quiet Motivating One peculiar aspect of the stock market is that anybody can participate. There are no (or very low) barriers to entry. All you need is an easily available online brokerage account and the money to fund it, usually a minimum of two-thousand dollars. Once you’ve done that, anybody… Read More »
We have Gujarat Election going on, We will have Exit Poll results and Election results coming in next 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 the whole account. In… Read More »
During my trading session when I talk to my students reasons for losing trades , I noticed a pattern that seems to pop up pretty often when talking about losing trades. As it turns out, more and more traders are losing their trades and even getting their accounts blown up by trying to short at… Read More »
All those talks about proper money management and follow your trading plans are not secret to day trading success. They are principles to keep you out of trouble only. They are similar to what kindergartens teach the kids so that they would not do stupid things to harm themselves. The real secret to day trading… Read More »
Trading losses can end a career in a matter of a day, an hour, or in extreme circumstances even a few minutes Like What happened today after bank recapitalization most of PSU’s up 20+% in opening. Here I outline some of the ways I have dealt with losses in the past and how I got… Read More »
A lot of books have been written about the two sides of our brain. The Left Side which is the more linear, formula based, procedure oriented brain and The Right Side which understands design, symphony and context. Nobel Laureate Daniel Kahneman calls it System I and System II. System I – is the one which… Read More »
When I started trading back in 2000, like most novice, traders I was actually gambling. I was luck that I found my Trading Guru who helped me in this difficult journey. Traits of a gambler: I did most of this in my early days so speak from experience Failing to follow strict money management… Read More »