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Courses, horses – or the mind?

If you’re reading this looking just for the best course to attend, you may be disappointed. I go deeper than the simple issue of ‘which courses‘ or ‘what course is best’. Introduction I’m sharing a summary of my experiences over the last 4 years, so that others can see something more about ‘courses’ – and what courses can never give you. I am nobody known or big in the trading world. I do not offerRead More

Extreme volatility

Whilst volatility is necessary in trading there are issues with extreme volatility that traders need to consider. The clickable chart below shows one example of extreme volatility with Copper (CUUUSD). The size of a reasonable stop-loss which is related strongly to account size, is a limiting factor. If your account is say £2000 how much of a hit can you take in one trade like this? Not much. You’d be depending on luck to jumpRead More

Disentangling currency pairs

Many a new trader will find listen to the news about which currency is doing well or badly. For example the news might say that the US Dollar strengthened, or something like that. Most of these news reports do not say how they know what they are reporting. Traders would normally be setting their brains against currency pairs e.g. USDJPY, or GBPUSD and so on. This is a ratio of one currency to the other.Read More

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

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 an urge to change their minds on what to do. This situation occurred recently with BTCUSD. On one day it appeared that there was as strong microtrend on a 2H time frame pushing against the big bearish daily trend. Then on the next day it appeared that the 2H trend mightRead More

Better than a million minds

Are you better than a million minds? The chart below shows the recent extreme volatility on Wall Street. Millions of minds are into this ‘game’ of stocks/shares. They all want one important thing: profit on their positions. We don’t know these people (obviously); how can we. Yes – their interests may be represented by brokers in the stock markets. Some of these folk are institutional investors – these are the ‘big boys’ with big financialRead More

A brief exploration of how patience can affect trading

Patience in trading

What is patience? According the Cambridge English Dictionary, it means: “the ability to wait, or to continue doing something despite difficulties, or to suffer without complaining or becoming annoyed.” Patience is of course a psychological characteristic. It certainly isn’t something physical. The opposite of patience is of course impatience. Why is patience important? As a new trader you may have started off trading on lower time frames such as 5 min or 15 min, limitedRead More

Coping with volatility – the value of experience

This post continues from ‘Is volatility your friend?‘ The emphasis here is on copying with volatility. ‘Coping’ is a psychological thing. New traders will have emotions and it is no good denying this or avoiding it. The screencast below brings out what tends to happen with new traders when price moves in the ‘opposite’ direction (full screen view is best). There is no magic formula or advice on how to cope with volatility. This is whereRead More

Is volatility your friend?

Every trader knows that volatility is the thing that is necessary in order for the price to have movement. But there are different kinds of price movements. Some instruments move in fairly neat directions up, then retrace and move up again. We all love these. There are some others that are ‘all over the place’. The chart below shows a volatile situation on 15 min time frame. Degrees of volatility seen, depend a lot onRead 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