Trading Plan Step 1 – It’s All About You

Good morning everyone, following last week’s article about Trading Plans, here is the first instalment of building the plan. Some of you might think the questions are a bit corny but, having gone through this process, it’s amazing how much you will learn about yourself and your approach to the market if you start writing…

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The Importance of a Trading Plan

The topic of Trading Plans is not a small one. There is a lot to consider. This article will be about the broad reasons why developing a plan is so important, and an outline of the major things to consider when developing a plan. Subsequent articles will go into far more depth about exactly what…

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50 Trades of (mostly) Green

It has been a very exciting week for the Trading Ideas section, on a couple of fronts. First and foremost, we closed four winning positions in Elders (ASX: ELD), Nextdc (ASX: NXT), Accent Group (ASX: AX1) and Appen (ASX: APX) – the latter being a juicy winner with a gain of almost 12%. It was rewarding to see the work…

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Lessons From Steenbarger

Today I share with you some of the views of the esteemed trading psychologist, well-known author –  and a personal favourite of mine – Brett Steenbarger – a man with extensive knowledge of how our minds work, both for and against our trading success. Steenbarger has a theory of keeping an ‘empty mind’ when it comes to trading,…

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Risk/Reward Ratio

Capital Management – Risk/Reward Ratio

Today we conclude the Capital Management series by discussing point number 4; Determine your risk sizing Identify your stop price or where you will exit if the trade goes against you Calculate your position size Examine the risk/reward profile of the trade before entering Professional traders spend more time thinking about how a trade could…

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Position sizing

Capital Management – Position Sizing

Today we look at step three of our series on capital management Determine your risk sizing Identify your stop price or where you will exit if the trade goes against you Calculate your position size Examine the risk/reward profile of the trade before entering Calculating your position size is probably the easiest step in the process, but still a…

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Identifying your stop price

Capital Management – Identifying Your Stop Price

This article covers Step 2 in the Capital Management process; Determine your risk sizing Identify your stop price or where you will exit if the trade goes against you Calculate your position size Examine the risk/reward profile of the trade before entering When people first come to the market, the biggest question is ‘which stocks to buy’. So much…

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Capital Management – Risk Sizing

  Here are the four steps we have outlined previously regarding Capital Management. Below we will cover the first one in more detail. Determine your risk sizing Identify your stop price or where you will exit if the trade goes against you Calculate your position size Examine the risk/reward profile of the trade before entering Capital management is a crucial…

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