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The nature of expectation in financial trading

On several occasions I’ve referred to ‘expectation‘ as against ‘prediction‘. I can expect a delivery of a package at my home this morning (for example) but that does not mean I know it is going to arrive for certain ‘this morning’ or that I predict that it will. ‘Expectation’ means a reasoned position/opinion based in information I might have or inferences I may make based on a range of things. How is expectation important inRead More

The limitations of rules in trading

Why there are no rules

Many new traders are brainwashed by various experts out there into believing that there are certain rules in trading. For example some say, “Never margin to more than 10% of your account size.” Others go, “Ignore the RSI totally.” Traders can sometimes become confused about what they refer to as ‘rules’. Rules may be self imposed boundaries as part of a personal strategy or method. However, some traders take these to mean that their rulesRead More

Learning about trends – smelling them

It’s often thrown around that ‘The trend is your friend’. I had heard or read these words several times in the last three years. I understood the words and the idea behind it. It is not a difficult thing to understand that the prices of instruments in markets move in trends. This is easy to see by watching a moving average (MA) or exponential moving average (EMA). But it is easy to spot a trendRead More

Your first or next million?

This is worth your next million

Lots of new traders are looking for a magic solution to make money. They come into trading as a sort of flirtation – to see ‘if it works for them’. It doesn’t. There are no hard statistics on this but Charlie Burton estimates that about 80% of people who begin trading a live account will leave within 6 months. That’s about our estimate as well. There is no single method or trick to making moneyRead More

Turning the corner – what people don’t get and why

Well, well… what’s this all about now. I’m afraid you’ll have to read on. And if your dog needs a bath (and I don’t know if you who reads this has a dog and I couldn’t care less), then go bathe the dog! If you have time, look below at results of a true change in performance following a change of strategy.   Some time ago said to all new traders that change takesRead More

Mission Impossible – early notice.

What if there was a way to take money out of the markets (legally of course) without  having to figure anything?! That must be the ‘Holy Grail’, some will say! And others will say IMPOSSIBLE!! And if you found the Impossible, would you share it? I don’t think so. Newtrader is investigating just such a Holy Grail. Yes – this is Mission Impossible! It starts with the chart below (which you click on to seeRead More

Protected: Rewrite your psychology, else you’re doomed.

There is no excerpt because this is a protected post.

Nerves of steel – like Formula 1 racing.

Many new traders are unaware that they actually need nerves of steel. Some will argue that ‘nerves’ are not part of the equation – if one is truly in the so-called fearless state. But hang on – on the way to achieving that state, there will be ‘nerves’. It’s no good expert traders telling new traders to lose their nerves. After a new trader gets his nerves of steel, then he actually realises there isRead More

The Zanger interviews

These interviews may seem meaningless to new traders but in reality they’re worth millions!  See also: Who the devil is Dan Zanger and why should anybody care?

In a good and difficult week

Only occasionally I share results of my trades. This week has been an important success in the lead up to the BREXIT referendum. The markets have been wild, to say the least. But in trading we like ‘wild’. I’ve used the ‘stealth trading system’ – and this last week was a pretty good test, playing 30min to 1H time frames. The wildest ride I ever had was with GBPCAD today 17th June 2016. See below. I kept myRead More