Conversation with a failed trader
Today I met a chap who is a failed trader. This was a rare opportunity. I had known him for about 3 months just fromRead MoreLearn More
The loser’s game
The news has been out from August 2018 that the European Securities and Management Agency (ESMA) has compelled all brokers (subject to its jurisdiction) toRead MoreLearn More
Bitcoin: Investor, trader, gambler or idiot?
In the last few months we’ve received inquiries from several about Bitcoin and various similar things, often referred to as cryptocurrencies. In essence many ofRead MoreLearn More
Microtrends and risk aversion
Many a trader will have looked at the same chart (say AUDUSD) at different times (let’s say 4 hours apart), and had doubts or anRead MoreLearn More
So did you get it right?
Did you get it right? This is an important question for new and seasoned traders to think about – but there is a problem withRead MoreLearn More
New traders conned
This morning I receive yet another email from somebody selling a system for beating the markets, subject to terms and conditions. It’s some software thatRead MoreLearn More
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 seeRead MoreLearn More
Sterling causes excitement
Those who were watching Pound Sterling, would have seen some excitement recently. The Prime Minister, Theresa May, called a snap election on 8th June 2017.Read MoreLearn 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 theRead MoreLearn More
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 – ifRead MoreLearn More
The more I look around the net on trading courses, the more I come to think that there is a big scam going on. SomeRead MoreLearn More
Tools – not fools!
The tools referred to here are ‘physical’ things – as against ‘psychological’. This is about some of the stuff that could be of use inRead MoreLearn More
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F E A T U R E D
Aroon is not a ‘who’. Aroon is an indicator of momentum in the markets. But it does more than show momentum. It is about time-momentum which is a novel and under-appreicated concept. The Aroon was developed by Tushar Chande (PhD in Engineering and MBA at the time). In 1995 Chande first published his ideas on the Aroon, in Stocks & Commodities – a most respected journal contributed to by people of exceptional qualifications and trading experience.Read More
Correlation is about how certain things are related. Some instruments are inversely correlated i.e. if price goes up on one, then price tends to go down on another. Positive correlation means they move in the same direction. It is almost never the case that there is perfect correlation between two instruments. Interestingly the DAX (GER30) which is the German stock market index, has a broad inverse correlation with the EURUSD currency pair, especially on higherRead More
Today I came across another classic example of support and resistance. I often review things that I had already learned so as to etch in my brain the importance of the concepts. The chart below explains more.
Most trainers talk about discipline. In fact they over-emphasise discipline so much that it becomes a ‘pain’. But there is another aspect to discipline which involves pain. Remember ‘No pain, no gain’? As a noob you really don’t appreciate that much what this ‘discipline’ is about. Well, the markets inflict their own callous discipline on noobs – that’s a different sort of pain. From that pain comes a newfound discipline. ‘Feelings’ about the market causeRead More
It takes some time for the two most important things in trading to hit home. It’s easy to understand the words, but the meaning and importance come later. Limiting loss with sensible stop-losses is of the utmost priority. With a 60 – 80% loss rate which is not unusual, that’s where any profits made on winning trades evaporate. So, it must be of the highest priority. Targets – sensible ones – are the next mostRead More
I’ve explored Williams Vix Fix on mainly 4H charts in the past. Over several weeks I’ve been looking at 2H charts to see if WVF works on these timeframes. My observations are that in some situations they can be valuable. Of course, WVF requires careful attention to detail and interpretation. In general only signals coming from a deep pullback in price in an uptrend are reliable. When you’re watching price unfolding, you can’t really knowRead More
A very big part of trading is stalking the markets. Good traders are always tracking the charts days and weeks in advance to see how patterns are developing, waiting for the right moment to strike their ‘prey’. Yes – for sure good opportunities don’t come along very often. But that’s part of the ‘job’. A good trader is spending much time in the background preparing; keeping his powder dry as they say. GBPAUD has someRead More
The terms ‘trend continuation’ and ‘trend following’ have caused me some confusion for quite some time until about 6 months ago. The first obvious difficulty is the use of the words themselves. It’s natural to think that if a trend is continuing then you must be following it. But the two techniques are rather different. I will try to crystallise what I’ve discovered (and I may not be 100% correct). [See disclaimer at the end.]Read More
FormationSeeker is a revolutionary resource for all traders. Scott Carney, the renown brain behind discovery and development of some harmonic patterns has been a driving force at FormationSeeker. FormationSeeker runs web-based software that picks out harmonic patterns consistently, matching much of the knowledge, skill and experience of Scott. I first logged in for free on FormationSeeker and it simply blew my mind!! Having studied much of Harmonic Trading Vol 1 and 2, the patterns drawnRead More
In trading circles many new and seasoned traders use the words (or similar): strategy, method, targets, goals. But what do they actually mean? How do they all fit together? How are they organised? (see mindmap below). In this post I take the concepts apart and put them back into some sense of organisation. Some have confused and conflated strategies and methods – and have lost track of the ‘Grand Mission’. Some seem to take theirRead More