In a market where each participant has different motivations, the only “right” trader is the one who is profiting.
The Best Macro Charts from 10/19/20 to 10/24/20
There are a couple of things you don’t need to think too hard about because they really don’t affect your long-term success as a trader.
Top Macro charts from 10/12/20 to 10/17/20
Economic laws control the flow of prices in the market. The legendary trader and market pioneer Richard Wyckoff summarises three principles that capture what creates the existing price and what changes it.
Although volatility must be compensated for by a trader when it comes to position sizing and distance to stop losses, it should not be treated as detrimental to an opportunity.
Many traders focus on managing trade entries and exits, seeking alpha. Most traders learn the hard way after having trouble with pressure, impulses, and ego force them not to execute their trading plan. Risk management generally is learned last, after discovering the impact that lost capital can have on confidence.
Regardless of your risk and rewards profile, a good investment portfolio needs diversification. Even though this reduces volatility, no portfolio is protected against risk or loss.
Candlestick charts are an analytical technique that transforms data into single price bars over multiple time frames. It makes them more valuable than conventional open-high, low-close bars or lines that link the closing price points. When charted, candlesticks generate trends that forecast price action. Proper color codes add depth to this technical tool first built by Japanese rice traders in the 18th century.
When a trader enters the market, any following price movement is based on market participants’ collective actions not any individual’s own opinions, hopes, and beliefs. While a trader can manage a trade via position size and exit strategies, he can not determine whether his stop loss or profit level is hit. A trader is at the market’s mercy to choose the future of each of their trades.
“What’s measured improves”― Peter Drucker Maintaining a trading journal is a smart strategy to increase efficiency and build trust in actions. Day trading performance requires high coordination and preparation level. Day traders need to go through a rigorous educational process to be consistently successful in trading. The best tool for directing and managing the frameworkContinue reading “A Traders Best Friend [30 Trading Journal Questions]”
With a price action strategy, the trader’s decision is made up through the current price movement.