Image courtesy of 401kCalculator.org Good traders and good trading systems have losing streaks and that is just a fact of trading. Overbought and oversold can become more so, bull markets have no long term resistance and bear markets have no long term support. Sometimes losing streaks have nothing to do with how good a system […]

I see so many traders that seek the “Holy Grail” of trading and search for it for years. They are always students and are very light with their trading of real capital because they are always waiting and trying to ‘figure it all out”. The truth is that there is just a few things to

There is a high probability that volatility continues to rise next week off recent lows with the perceived and expected headline risk in Iraq and the uncertainty about its future. It would create some better set ups for equity traders if the market uses Iraq as an excuse to take profits and bring the $SPY

  $SPY spent 2014 primarily range bound before its recent break out. The 5 day ema has been end of day support for the past 12 days. The 50 day sma has been support since late April. $SPY has broken and closed above the 70 RSI for the second time since year. $SPY is up

I never want to lose more than 1% of my total trading capital in any one trade. I try to put on position sizes where the worst case scenario is a  dollar loss equal to no more than 1% of my account. I want to risk 1% to try to make 3% on my capital.

The new trader must win the battle of your ego, of wanting to be right and change it to just wanting to make money and a big part of that is admitting you are wrong quickly. We have to win the battle of wanting to be lazy and instead do the homework required to be

    “Trading is easy money, how hard can it be to just buy low and sell high?”  The learning curve is steep and the work involved is intense mentally, emotionally, and intellectually. “I have a few thousand dollars, I will turn it into a million dollars quickly.” The bigger the attempted return the higher

   With all the perma bull fan fair we are sitting on a 4.33% return in 2014 for $SPY and it has been a choppy ride up with plenty of whip saws. I know many swing traders and day traders that are out performing buy and holders and trend followers. The 50 day sma has

Too many traders enter the markets with the get rich quick scheme, the delusion that trading is an easy way to make money, or too lazy to put in the effort it will take which is measured in years to be successful not hours. New traders need to focus completely on surviving that first year