Where financial traders gather
Stop-losses are very important to all new traders. In this post I look at it more deeply. The infographic below is about fixed targets which are relevant to most types of trading strategies. It is not very relevant to trend-following methods.
I’ve been stalking NZDCAD for some time. It is a most interesting and challenging currency pair. In August I was stalking NZDCAD for a short. At that time there was a weekly zone of resistance. Now here at the end of November, the picture has changed. Sound traders shift their mindsets as new information emerges. I’m ...
For those who have been watching the US30 or the SPY or the DJI, there is some crazy stuff going on. The on the night of the Trump victory, the bears mauled the bulls – as you can see on chart below. The bulls rebelled within hours. The market rallied to a new high. But ...
Perspective is everything if you’re a day trader. You may know you’re in a winning situation from what’s happening on the charts. But what lies lurking for you? How can you spot the traps? It’s simple but not easy: change your perspective. The following composite graphic shows how a failure to change perspective could have ...
Hindsight is a wonderful thing. We can learn lessons but in doing so there is a risk of the coulda-shoulda-woulda phenomenon. The following charts show some interesting features in EURUSD. Any lessons there should be applied cautiously.
For some time I’ve been looking at trend lines. It has been noticeable that not all trends are simple. Complex trends may have minor trends within them as in the example below. Why is this important? It’s about how or when you enter a trend. Trend lines are fascinating when you watch them over a ...
It is possible to profit from greed as much as it is from panic. The following chart was not a prediction. It was an expectation and it materialised.
It’s usually possible to easily spot the direction of a trend by looking at a chart – that’s the easy part of trading. What’s not as easy is to work out how strong the trend is. By ‘strong’ I mean, if you’re putting your money on the trend going in the preferred direction, you would ...
Perspective is everything! The following charts show different perspectives of NZDCAD. The moral of this story here is, not to maintain a narrow focus. This will require some deep thought. Perspectives change when you change your perspective.
This recent bounce on DEERE & CO has got me looking again at Earnings Releases. For those who would play ER’s a Guaranteed stop maybe advisable (cost of this need to be factored into the equation) or Reward to Risk ratios. Alternatively no guaranteed stops may be taken but risk of significant slippage would ...
