You don’t trade the markets, you trade your beliefs about the market. That is one of the reasons for the wide distribution of returns. Various hedge funds trading the same markets. But one hedge fund loses -5% in a year, another gains +50% in a year. Why is that so? Well, one of the reason …
One key habit. What’s that one key habit that, I wish I did on day one? It’s the discipline of writing down – even jotting down my beliefs and rules for what the perfect trade should look like. Do this write now – quickly. In less than a minute. Just write down quickly what you …
One of the great battles fought every day on the trading battlefield. It is of the stale versus the electrifying trading information. In one of my earliest books I read (Trading & Exchanges: Market Microstructure for Practitioners) which helped form the foundation for my trading philosophy, it includes a few key pages on stale …
Trading is the pursuit of truth. Which also means it is a meritocracy. Star traders tend to get rewarded and rise to the top. It usually (But not always) happens that way. Which brings me to some news that happened over the past few months. If you are not familiar, George Soros, one of the …
An economics textbook. A college course on economics, etc. If you really desire to be a trader, do you need any of them? Nah. You don’t. There are some people that believe they are going to get into trading by studying intensely an economic textbook. Or by taking a college class, etc. It’s certainly a …
Why should you trade Forex to begin with? Whether you are just starting to trade the currency market, or adding it to an existing strategy and portfolio here are the reasons to do so: Trading 24 Hours A Day: This is a popular marketing point often touted to promote forex trading – the fact …
It’s in my hands. The weekly Barron’s newspaper. And what is the front page story? Out of all the potential macro opportunities and imbalances in the world they could possibly spotlight, they chose the AUD and commodities. Let’s take out some snippets and analyze them: “Right now, the Australian dollar is signaling that the …
As the years go by, I learn more and more what is highly relevant and powerful information, and what is irrelevant, low value, delusional, and potential dangerous information. All of life is a series of information, your interpretation of that information, and what you do with it. If you happen to interpret irrelevant information, or …
Is your trading different? Is your investing different? These comments arrive from time to time about how someone is a different type of trader and how these order flow or global macro or stop hunting strategies do not apply to them. Or how they are an investor and that these strategies do not apply to …
Read the whole blog post to the end, so you understand the secret insight given near the end that you will not want to miss under any circumstance. There are many different ways of extracting profits from the financial markets. You have numerous different options and strategies and markets to trade. In fact, one of …