Making Better Decisions

I thought this email was worth publishing. This email followed Henry's On the Couch session with Technical Analyst Regina Meani on Saturday: EMAIL FROM A MEMBER – Over the years I have tried and tested just about every indicator that exists. I also try to keep things as simple as practicable, but still effective, so have…

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…

50 Trades of (mostly) Green

It was a very exciting week for the Trading Ideas section when we finished our first 50 stocks. 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 and trade…

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,…

Former head of the FOMC Paul Volker

We are on our own now

Paul Volcker was the Federal Reserve chairman before Greenspan. He was appointed by Jimmy Carter in 1979 and served as the US central bank’s chairman until 1987. Volcker was the man who, in an inflation obsessed era (the 1980’s), worked out that reacting to a rise in inflation didn’t work, and that central banks had to…

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…

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…

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…