Tag: decisions

 

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

What is gambling?

Gambling is a bad word and a bad thing for most people. Strangely enough at September 2014, it was estimated that “70 per cent of UK adults, more than 32 million people, play the lottery on a regular basis.” This means that 70% of the UK population are gamblers. The percentage of people taking chances on the Lottery have varied from 32% to 70% in 20 years. Concepts So what is gambling? Some say investing in stocks is gambling. OthersRead More

Mind the gap

Gaps are traditionally taken by new traders and some gurus, to mean that price will continue on balance, in the direction of the gap. In financial trading that is only true some of the time. Even if it is true, say 55% of the time, what does it mean for new traders? Nothing! Why? Because the only issue in profitability is how a new trader controls their acceptable loss (aka stop loss). The chart ofRead More