The natural bias of price direction
This is about looking at candles or price and the mind noticing that price is going in a particular direction. So a trader comes to think naturally that ‘it’s goingRead 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).Read 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, orRead 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 meanRead More
Stalking the microstructure of chaos
On occasions a trader may need to turn up the microscope and look deeply into the chaos. For what? A micro-fracture, a microtrend or a small bubble movement that isRead 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 mindsRead More
So did you get it right?
Did you get it right? This is an important question for new and seasoned traders to think about – but there is a problem with it. So you made yourRead 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 wantRead 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, thatRead More
The limitations of rules in trading
Why there are no rules
Many new traders are brainwashed by various experts out there into believing that there are certain rules in trading. For example some say, “Never margin to more than 10% ofRead More