This step is about actually taking some time to think about what you want to achieve in the market. I think it’s fairly critical. How on earth are you going to decide what you are going to do without having a goal in mind? That would be like getting in the car to go on…
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…
First instalment of building a trading 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 things down. When I did it, many years ago, I found that…
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. That’s the first lesson; you have to write it down. Any…
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…
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,…
Early on in my trading career, I was intrigued by technical indicators. So intrigued that I spent the best part of two years researching every single indicator I could. You name them, I’ve researched them. From the Advance/Decline Line to the Zero Lag Exponential Moving Average – and just about everything in between. Each indicator…
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…
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…
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…
