One common trading strategy is trading market pullbacks on charts. A pullback trading strategy buys a reversal in an established uptrend when it reaches a technical chart level like a key price support area, a bounce around an important moving average, or an oversold technical reading. A pullback trader looks to enter an uptrend when […]
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Here is a list of the best books on options trading based on Amazon sales, reviews, ratings and author popularity. It is important to have a full understanding of the options market and pricing model before diving into options trading with real money. Options are derivative contracts and complex instruments where time, strike price, and volatility
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One of the biggest errors that new traders make is trading too big. If you trade too large of a position size you will inevitably give back any profits you earn with your first losing trade or string of losses. When you are starting out as a new trader: “Trade small because that’s when you are
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Most new traders never make it through the learning curve and traders that are successful early on at making money only discover that they were lucky and did not have the skill they thought they did. Traders go through many stages in their development and they can’t skip a step, they must learn the lessons
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Here are twenty of the top trading blogs based on Alexa website traffic rankings. These are diverse trading blogs that cover different markets like trading stocks, options, forex, futures, and crypto. They also cover different topics like trading psychology, market psychology, price action, system development, risk management, and charting. There should be a trading blog
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This list of the top books on investing of all time is based on a quantitative composite ranking of Amazon book reviews, all time sales, and, quantity of ratings, and author popularity. This is a guide for investors to dig deeper on Amazon and see which books fit their own investing time frame, risk tolerance, return
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Many people aspire to be traders when they see the potential for making large sums of money. Money attracts interest in any field whether it is practicing law, medicine, or entrepreneurship. However there is a huge distance between wanting to be something and doing the work to achieve a professional goal. It is generally accepted
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Do you really understand what risk is? What is risk? Risk is a situation involving exposure to danger. Risk is to expose (someone or something valued) to danger, harm, or loss. – Oxford Languages In trading risk management is using processes to control, minimize, and protect trading capital from the many dangers in the financial
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“Discipline is the practice of making people obey rules or standards of behaviour, and punishing them when they do not. Discipline is the quality of being able to behave and work in a controlled way which involves obeying particular rules or standards.” – collinsdictionary.com Trading discipline involves making yourself follow your own trading rules. Self
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Technical analysis indicators derive their readings by applying a formula to a series of price data on a chart. The historical price data used can include samples of the opening price as well as the high and low or closing price over a specified time period. Different technical indicators will use different types of price
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A trading strategy is the process used to enter and exit positions in a market based on quantified signals on when to buy and sell. A trading strategy will have trading plan to express a methodology that defines a trader’s return goals, risk tolerance, and time frame. A successful strategy should have an edge expressed
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This list of top 35 trading books of all time is based on a quantitative composite ranking of Amazon book reviews, all time sales, and author popularity. This is a guide for traders to dig deeper on Amazon and see which books fit their own trading time frame, risk tolerance, return goals, and systems for
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Reading price action is the art and science of trading by understanding the interaction of buyers and sellers as measured by prices on a chart. Many pure price action traders remove all technical indicators from their charts and trade price alone. Some consider price action trading the purest form of technical trading and technical indicators
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Price action trading creates chart patterns in the financial markets through the buying and selling of positions by traders and investors. A chart pattern is a visual record of the votes by bears and bulls around different price levels. There are different types of chart patterns. Continuation chart patterns that confirm a trend is going to
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The art of selling a losing position is a key skill in the science of risk management. When you are in a trade that is losing money you have to know when it is time to exit and accept the loss. In theory stop losses and keeping your losses small are simple in concept but
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A risk management process for a trading system is not just math but also includes human psychology. The psychology of execution is just as important to profitability as the trading dynamics of the entries and exits of a trading method. Humans have fear, greed, and egos and these elements can interfere with the process of
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There is some negativity in society about being a trader, in this post I would like to explain the positive side of being a trader and why a trader should be proud of what they do. Some say “A trader doesn’t create or produce anything”. That is wrong. In the history of civilization it was
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Jim Simons was one of the most successful hedge fund managers in history. He was a trained mathematician and quantitative trader and the founder of Renaissance Technologies. His hedge fund specialized in diversified system trading using individual quantitative models derived from statistical analyses of historical price data. His primary models were on pattern recognition. Jim
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Chart patterns are visual representations of the behaviors of buyers and sellers around different price levels. Chart patterns are bullish when a chart is making higher highs and higher lows, they are bearish when they are making lower highs and lower lows, and range bound when they have defined support and resistance levels and no
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A trading journal is the book a trader writes about their own trading. A trading journal records decisions made in the market so you can see any errors in discipline, risk management, or process. If you can measure it, you can change it. If you are mindful of your behavior you can learn from your
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