“Jane, an experienced trader, has had a few good months trading Forex. Her strategy is returning a pretty good profit. Her confidence is high. She thinks of making the good run count and starts playing with twice her normal position size. Unfortunately she has a string of losing trades and in a matter of days […]
January 15th 2015 will go down as another historical day in the financial markets. An event triggered by a national bank action caused a tsunami in the forex market. In a matter of seconds Swiss Franc soared as much as 41% against Euro; also impacting other correlated markets to varying degrees. Take a look at […]
If you have been trading for any length of time, you will have become aware of how important a right mindset is in order to achieve trading success. No trading book is complete without a chapter on psychology and how the emotions of ‘Fear’ and ’Greed’ influence trading. A lot of trading gurus and pundits […]
New traders and sometimes even experienced traders struggle to answer a key question – How much capital is good enough to make Forex trading a worthwhile pursuit? The expression worthwhile will have a different measure for different people. Some would like the trading activity to generate enough income to compensate for the hourly /monthly rate […]
In the previous post I discussed the fractal nature of markets. In this article I would like to discuss another structural phenomenon which characterises price movement. This concept is called ‘Reversion to the Mean’. Price for any asset class never moves in a straight line, it always forms waves of movements, thrusting forward, then retracing […]
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Fractals in trading
Understanding the fractal nature of price movement is an important concept to help you analyse the markets and optimise your entry and exist. So what is a fractal? A fractal is a natural phenomenon, a mathematical set or a geometrical pattern that exhibits a repeating pattern that displays at every scale. The key words are ‘repeating’ and ‘every […]
One of my long time colleagues and a mentor recently shared something very personal. He had invested in a property in London paying a staggering £650,000 for the one-bedroom flat. A similar sized property in Bristol (where I live) would be around £150,000. Why such a huge difference? Almost everyone would answer that with ‘it’s […]
One of the most important aspects of successful trading is knowing that your trading method has an edge over the market. Theoretically speaking an edge is defined as a set of conditions which when present gives a higher probability of a trade working than not working. These conditions can be based on price, indicators, chart […]
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Trade Management
Have you ever strangled a trade by a few pips and then see it motor along in your direction by hundreds of pips? Or failed to book profit at an opportune time only to see those profits evaporate quickly? I know I have. And if you have been trading for any length of time then […]
Couple of days ago I was having a chat with one of my mentees. I asked him how his trading day was. ‘I started very well this morning’, he said. ‘I had two winners and was in profit by 40 pips (£200). Then I took another trade, which looked okay as per my trading method […]
I see a lot of adverts from Forex brokers and Spread Betting companies offering joining bonus for new clients, some pretty generous as a percentage of the initial deposit. Some offer a fixed amount like £100 when you open an account, deposit a certain minimum amount and take a few round trip trades. Others offer […]
I was in Paris last week and lucky to attend a speech delivered by Bertrand Piccard, the legendary founder and pilot of the world’s first successful solar powered plane and a psychiatrist. I want to share with my readers some of the key messages I picked from his speech. Talking in ballooning terms, he said, […]
This is the time of the year when there is a festive atmosphere all around. Christmas do’s at work, the happy banter with friends and colleagues that comes with these do’s, decorated shopping malls buzzing with keen shoppers and generally happy looking people with everyone looking forward to a reunion with friends and family over […]
Recently I was in India for my annual holiday. It was at a time when the entire country was gripped in cricket fever – a fever that was much more pronounced than I have seen before in decades of my following the game ever so closely. The reason was that one of the game’s all […]
A couple of years back I had a little niggle in my lower back. According to the doctors apparently there was some ‘normal wear and tear’ leading to that painful condition. He recommended some painkillers and redirected me to see a physiotherapist. Over few sessions physio sorted my sore and stiff back. He also advised […]