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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

Deceptiveness of the RSI

The RSI (relative strength index) is classified as a ‘leading indicator’ because it is thought to have predictive value. By contrast lagging indicators are said to simply follow price and have less predictive value e.g. bollinger bands. The reality is that no indicator can predict anything and all indicators have limited predictive value because they all rely on historical price movements. Notions of predictive value are formed after events have happened, and are subject toRead More

Dreamers exploited

The more I look around the net on trading courses, the more I come to think that there is a big scam going on. Some of the supposed greatest traders out there are selling trainings and courses. They’re selling dreams for the most part. Look, I just don’t get it – if you’re making millions why would you wish to sell new traders whatever opportunity at £1799 reduced from £9977? Do you really need theRead More

Stealth trading

I’ve now coined the term ‘stealth trading’ to mean trend following. All this is perfectly legal!! The chart below shows generosity to the markets. No longer are we fighting with the markets. We’re being kind in order to get our due returns. This is entirely different to a snatch-and-grab approach. See original assessment here at Tradingview. This is a follow up to EURUSD Analysis on 13th May 2016. (Snapshot reinserted here for ease of reference.)

Trend continuation and trend following

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