You hear all sorts of great traders say that risk control and money management are the pillars of trading success. After you have a trading system that has an edge this is of course very true. You hear them talking in cliches about how you should cut your losses and let profits run. They talk …
One of the problems I used to have is that I dwelled on a missed trading move. I would see the currency pair move hundred of pips and I would miss out on it. Then I would bang my head against the wall. I would kick myself for missing out on the move. Sometimes that …
Here is a question you can ponder, especially for those skeptical of news trading, global macro, or some sort of fundamental analysis. Why is there this whole infrastructure surrounding disseminating and publishing information about the financial markets, economies, securities, etc? You have Bloomberg, Reuters, CNBC, Wall Street Journal, and countless other news sources out there. Then you …
Michael Steinhardt, the now retired billionaire hedge fund manager said about the one quality he valued in people: Very wise words indeed, as there are many traders are paralyzed from taking a position. They are afraid to enter the game. They are afraid to have a particular view or bias on a financial instrument. …
Some people wonder whether or not they should hedge. They hear all this talk about diversification, about hedging to reduce risk. It is true that if you are in a profitable trade, and you hedge, assuming it is a smart hedge, then you will reduce risk. But you also reduce the reward as well. You can …
Trading is one of the most lucrative and appealing careers. One of the big reasons is because it is a meritocracy. A lot of your skill is measured in your profit and loss. You make as much or as little money as you want. As I previously discussed there are various levels of trading …
When I first learned about order flow trading, there were pretty much only two inefficiencies talked about. It was all about stop hunting and option barriers. Those were pretty much the only inefficiencies talked about. News Trading was talked about a little bit, but most people don’t know how and don’t want to do the …
Mind Over Market Part 6 http://www.youtube.com/watch?v=hQ9XM55pclw Mark Douglas talks about how some people need to only start trading a small size. And that when you are only trading a small size most people do not think there is any point in it. From an immediate money standpoint you will not make a lot. But when …
Mind Over Market Part 5 of 7 http://www.youtube.com/watch?v=Vx6wL0zHjoE Mark Douglas talks about how you need to be able to change the way you think. He is absolutely right. Not only do you need to change the way you think about money management and trader psychology. Not only do you need to change the way you …
Mind Over Market Part 4 of 7 http://www.youtube.com/watch?v=dkmbfMzRjFw The interview starts off with Mark Douglas talking about how believing in a random result affects your expectations. Mark Douglas is absolutely right. Many traders, including myself when I first started, are afraid to take losses. I always wanted to be right. Every time I would take …