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Enquiry from a new trader

A new trader (who will remain anonymous) has contacted us to ask for some help. I’ll deal with each point, as it is of value to other new traders but largely for my own reflection. This is what we do, and we do this stuff for free and no obligation – ever! Note that I (or we) am/are as brutal as the markets will be. I (or we) am/are not here to encourage or facilitateRead More

Time – friend or foe?

Several times over the last year, I’ve had conversations with others about finding new or different ways of making money. Invariably the limitation of time availability comes up i.e. time to learn new skills, gain new knowledge etc. Some of those people were interested in learning about investing or trading (which are different concepts) – but just can’t find the time. Some thought they needed to go on a course or some special training –Read 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) to reveal their statistics on the percentages of losing trader accounts. See informative article headed, “ESMA Regulations Reveal: Where CFDs Traders Lose the Most“. The reported percentage of losing accounts ranged between 63.7% and 86%, with an average of 76.3%. Previous estimates of 90% of losing accounts weren’t that far off the mark.Read More

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

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 that runs on their server, that gives off signals when to enter long or short. Cost? USD $x9x down from $xx9x – and one is offered some ‘ultra’ indicator as free. Links to the advert are tracked, so that ‘they’ can monitor who clicks what in their emails. The adverts usuallyRead More