I get this question a lot: Is it worth it spending time trading when you only have a small account? They may only have $1,000 and think that even if they make 5% or 10% that is not a lot of money. Thus they may never get started trading and never gain the trading experience …
Trading is all about order flow and liquidity, no matter which market you trade, whether it is currencies, gold, etc. There is absolutely nothing wrong with playing the greater fool game, so long as you can manage your risk, leverage, know how to place good trades, and know when the trend is going to end. …
Someone once said: What is a trading philosophy? A trading philosophy is how you view the market to make your trading decisions. It is how you investigate the market in order to discover the truths and principles behind the price movement. A trading philosophy is critical to trading success as it forms a mental model …
Originally posted at forexfactory on May 6, 2011: I dunno man, that John Paulson guy says its going to $4,000. Hes betting like half his net worth on that one trade. If he says it, it must be true. Ohh but wait, I’m an order flow trader so I need to think in terms of …
You hear this repeated a lot in the trading forums and from many free articles on trading: That money management is everything in trading. That risk control is everything in trading the markets. That money management is the secret between trading success and failure. Money management is a sizable component of a successful trader. But …
Originally posted at forexfactory on May 2, 2011: Never read Lyons, and it is very low on my to do list. Well if you want to be a quant, then you study quant stuff I guess. If you want to be an order flow trader, then you study order flow, information flow, news, liquidity, global …
On February 14, 1994, there was a St Valentines Day Massacre for plenty of traders that were caught wrongly positioned in the currency markets. Certain floor traders got wiped out. Take a look at the floor trader named Jeff Ansani from the movie Floored Episode 4 on Babelgum. Scroll to the time of 2:00 to start …
Originally posted at forexfactory on April 26, 2011: Well, yeah if you put the statistics like that, then it doesn’t look good. But the dirty little secret is that you can think about the market while you are doing other things. You do not necessarily have to put it 10,000 hours worth of staring at …
The best traders and best order flow traders can catch themselves in the act of making a wrong trading decision. They can know when they are about to make a wrong trading decision and stop themselves before they make it. They are highly self aware. They know of the various scenarios that can play …
Originally posted at forexfactory on April 25, 2011: Well it is true that not everyone can be a successful trader. However, that line of thinking is extremely poisonous to the aspiring trader. The aspiring trader needs to be believe that it is possible to succeed in trading with every fiber of his/her being. Why? Because …