Yes, this is risk management. Without proper risk management, your trading strategy based on levels, indicators, patterns, etc.will not make any sense.Any trading strategy should be supported by strict risk management, where the maximum allowable losses per transaction and the risk ratio are observed:the profit is always more than 1/2. You don’t have to be […]
What were the greatest trades of all time? Here is the list of the who, what, when, where, and how of the greatest trades in the financial markets were made While the risk management of executing many of these trades is not what many traders would want, we can see many of these as trend […]
Just thought I would show you an interesting way to see who is making the right calls before a stock or (crypto)currency makes a significant bullish or bearish move. (PS not really a crash, more of some profit taking and a pullback to support. Be interesting to see what happens over the next few days though.)
I never understood why traders held losing trades for too long. Our goal is to make money, isn’t it? And yet, we’ve all held onto something negative for too long; a losing trade for a few days, a bad marriage for a decade, smoking for a couple of decades, or any number of other things […]
Most people don’t associate love with financial health, but your choice of life partner will be one of the most important financial life decisions you make. Staying single decreases your risk of ruin by marrying the wrong person, but getting married drops your expenses in half and doubles your chances of financial success. You have […]
“We learned just to go with the chart. Why work when Mr. Market can do it for you?” – Paul Tudor Jones Only price pays. In trading, emotions and egos are expensive collaborators. Our goal as traders is to capture price moves inside our time frame, while limiting our drawdowns in capital. The longer I […]
The greater fool theory states that the price of an object is determined not by its intrinsic value, but rather by irrational beliefs and expectations of market participants. A price can be justified by a rational buyer under the belief that another party is willing to pay an even higher price. – Wikipedia A lot […]
“ I always laugh at people who say “I’ve never met a rich technician” I love that! Its such an arrogant, nonsensical response. I used fundamentals for 9 years and got rich as a technician.” – Marty Schwartz Many people believe technical analysis is complete silliness. How can someone make money on lines and patterns […]
Ed Seykota is one of the most success traders of his generation. As a trend follower and money manager he made many of his investors millionaires in the 1970s and 1980s. He was one of the first traders to use both moving averages and early punch card computers to backtest trend following systems. His edge […]
