A trading method is a specific process and theory for approaching the financial markets in an established way to make money. A trading method brings orderliness of thought and behavior for planning and implementing a trader’s action for the philosophy behind entries and exits. Examples of trading methods are trend following, reversion to the mean, …
This is a Guest Post by AK of Fallible AK has been an analyst at long/short equity investment firms, global macro funds, and corporate economics departments. He co-founded Macro Ops and is the host of Fallible. What could Rick Rubin, legendary music producer, know about trading? Well, that’s what we’re going to find out …
This is a guest post from Tino @tradersreality. This article originally appeared on tradersreality.com and is reposted here with permission. What type of trader are you? Swing, Scalper, Position Trader? Whatever classification you label yourself, the importance of sticking with a style is going to determine whether you are successful or not… I will discuss …
In trading more action and time spent watching screens is not necessarily rewarded with more profits. The majority of the time trading every day and watching every tick in price is not rewarded by making more money. Ed Seykota had some of the best annual returns for decades and traded strictly with end of day data. Nicolas Darvas …
This is a Guest Post by Alex @MacroOps which was posted originally here: Markets as a Range of Reasonable Opinions and is reposted here with permission. The following is from The Philosopher in Drobny’s classic The Invisible Hands (emphasis mine): Some people can trade markets using only numbers, prices on a screen but this approach does …
It surprises people on twitter when they start a big passionate argument about why my trade is wrong and I just say, well if I am wrong I will stop out with a small loss. No big deal just one of my next 100 trades. Many have trouble even comprehending this concept. If you are managing …
Here is a simple example of a historical backtested winning trading system with signals and historical performance from 2000-March 2017. This is an example of a simple trend following system using the small cap ETF $IWM. Past performance is no guarantee of future success it is the principles of trend following that make any moving …
This is a Guest Post by: Colibri Trader @priceinaction. This article is used here with permission and originally appeared here at Why Every Trade is Different or The Curse of the Cauliflower. Why Every Trade is Different or The Curse of the Cauliflower by: Colibri Trader Trading is a way of expression. Being free to chose the way …
This is a Guest Post by Alex @MacroOps which was posted originally here: Expected Value (EV) & Bayesian Analysis In Trading it is reposted here with permission. An alternative title for a trader is “professional uncertainty manager.” Trading is a business of possibilities, not certainties. Despite our best efforts to predict financial markets, we’ll inevitably be …
This is a Guest Post by Alex @MacroOps which was originally posted here at Goals, Expectations, & Inner Alignment In Trading, Why Do You Trade? It’s important to understand the true drivers behind why you trade the markets. The answer is different for everyone. We all have different circumstances, wants, wishes, and desires. Find yours. …
