If you’ve been trading for a long time, you no doubt have felt that a monstrous, invisible hand sometimes reaches into your trading account and takes out money. It doesn’t seem to matter how many books you buy, how many seminars you attend or how many hours you spend analyzing…
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Don’t Hold Your Breath Too Long While Under Water
The headline of this educational feature pertains not to swimming but to trading. Most professional traders do not hold onto their losing positions for very long. Once a trading position goes “under water” most professional traders will immediately begin looking for an exit strategyÂÂÂÂ-if they do not already have one…
Kaufman: Multiple Trading Methods and Market "Noise"
Many traders attempt to find the single-most “robust” trading strategy possible by looking for one set of rules which works for all markets. Such systems don’t take into account the fact that markets can change quickly and dramatically due to a news event, according to Perry Kaufman.
Attention Traders: Making a Trading Checklist
Some traders are reluctant to put on a position because they are torn between what they perceive as conflicting market factors. Here’s a typical quote from such a trader: “The moving averages are positive, the market is trending higher, but the RSI shows the market as being way overbought. What…
The Importance of Position Sizing 2
You lose whatever you risk when tails comes up and you win twice what you risk when heads comes up. If R stands for you risk, this system is characterized by the two R-multiples it generates: 1) – 1R (when you lose, you lose what you risk and R stands…