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Sep
24

Single-Lot-Strategy

Single-Lot-Strategy
Because some markets are very "expensive" and do not offer a mini or micro contract, many traders have to stick to a single contract once in a while. In this case, you might trade a single-lot strategy. Finding the right target for a single-lot strategy is tricky and depend on your general trading strategy. You have to study your results to see what target gives you the best performance. You need ...
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158 Hits
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Sep
24

Reader Question

Reader Question
"Hey Joe! I'm pretty new at this. Can you tell me the rules for buy and sell stops?" When the market trades above a buy stop price order, it becomes a market order. The first down tick after the market order price is activated determines the highest price at which the buy stop order may be filled. The rule to remember placing stops is this, "Buy above and sell below." Buy stops are placed above th...
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184 Hits
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Sep
17

Trading as Partners?

Trading as Partners?
Trading is a stressful business. When you are in a trade, your money is at risk, and you repeatedly face the possibility of losing substantial amounts of trading capital. If you are a novice trader, the stress is even greater, since you have not yet learned to trade consistently, and losing significant amounts of trading capital is the norm, not the exception. Managing stress is a key to trading s...
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134 Hits
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Sep
17

Dow Industrial Average relative to legal holidays

Dow Industrial Average relative to legal holidays
Question from a subscriber: "Hey Joe, I just want to be prepared for the next legal holiday. I've been basically a Dow investor for years and now I've begun trading the Dow futures. Do you have any information about the Dow Industrial Average relative to legal holidays in the U.S?" Thanks to Yale Hirsch's excellent "Stock Traders Almanac" for the following: "The Dow closes higher before one day ho...
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175 Hits
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Sep
10

Passion for Trading

Passion for Trading
I believe that to be a truly successful trader you have to have a true passion for trading. This is probably true for any field of endeavor. I believe that the people who do best are not primarily motivated by fame, glory, respect, or status. They are driven by the pure love of the what they do. Winning traders, similarly, have strong interests in the markets, and this passion is the driving force...
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143 Hits
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Sep
10

Can you really make it as a trader?

Can you really make it as a trader?
You alone determine whether you will succeed or fail at trading. You alone are in control; take responsibility for your performance and your life. There are always tremendous opportunities in the markets. It is not what happens, it is what you do with what happens that makes the difference between profit and loss. You cannot marry a market or a single trading style. You have to look. Look at a var...
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Recent comment in this post
Guest — Lionel Johnson
Mr Ross, I have to say that was the best, most helpful article I have read in months. Many of us newer traders are searching to fi... Read More
Friday, 11 September 2020 06:35
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  1 Comment
Sep
02

Many Traders don’t make it!

Many Traders don’t make it!
Figures show that 90% of traders who ever trade lose their account and that 10% actually go bankrupt. Those are scary numbers, I'm sure you'd agree. Traders are not stupid people; most traders have an above average IQ and are above average in most categories such as education and income. I think they don't make a success out of trading because they lack proper education and mentoring. By education...
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248 Hits
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Sep
02

Losses

Losses
Sometimes I write an article that elicits a good response from our readers. One of those articles is written below in blue italics. I blended together the gist of what some of you wrote back to me, and many thanks to those of you who did. "Why are losses such a big deal? I can tell you why. In your book Trading is a Business , you said that once we enter the market, we are the market. And you also...
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389 Hits
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Aug
27

Six Steps to Becoming a Successful Trader

Six Steps to Becoming a Successful Trader
1. Focus on trading vehicles, strategies, and time horizons that suit your personality. 2. Identify non-random price behavior. 3. Absolutely prove to yourself that what you have found is statistically valid. 4. Set up trading rules. 5. Follow the rules. 6. Don't be afraid to abandon a rule that is no longer working. In a nutshell, it all comes down to: do your own thing (independence); trade what ...
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Recent Comments
Lindsay Revell
Love it
Friday, 28 August 2020 06:48
Guest — J
Todays Chart scan : Escape Congestion . This is very practical, when someone make some commentary about chart with possibilities w... Read More
Friday, 28 August 2020 07:28
Guest — Peter Orange
Thank you, Joe. I studied under you as part of Shane’s Trading in 1991. You were such a blessing the and you still are.
Friday, 04 September 2020 06:30
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Aug
21

Volatility

Volatility
Historical Volatility Also referred to as statistical volatility. Historical volatility gauges the fluctuations of underlying securities by measuring price changes over predetermined periods of time. This calculation may be based on intraday changes but most often measures movements based on the change from one closing price to the next. Not everyone agrees on how to calculate historical volatilit...
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278 Hits
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Aug
13

Bullish Divergence

Bullish Divergence
Mr. Ross can you tell me exactly what is meant by "Bullish Divergence?" It's really very simple. A Bullish Divergence occurs when prices fall to a new low while a technical indicator fails to reach a new low. This situation demonstrates that bears are losing power, and that bulls are ready to control the market again—often, but not always, a bullish divergence marks the end of a downtrend. The tec...
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1 Comment
Recent comment in this post
Guest — Earl Stallmann
Joe's bio says he's been mentoring for 27 years. I think it's at least 28. There were seven of us in a three day educational ses... Read More
Friday, 14 August 2020 12:24
362 Hits
  1 Comment
Aug
05

Dollar Value on "Success"

Dollar Value on "Success"
One of the great lies that all traders tell themselves, is that we need to make a lot of money in order to consider ourselves successful. That there's a dollar value on "success." That is absolutely false. The goal isn't to double your account or trade for a living. The goal is to be profitable. At Trading Educators, we hear from many successful traders — traders we ourselves helped in their train...
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315 Hits
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Jul
30

Indicators

Indicators
Hey Joe! Which indicators work for real trading tactics? Have you ever noticed that my entries and exits are based on price levels—actual price bars? I use actual price data to determine most of my entries and exits. There is no better technical indicator than price itself. Think about it for a minute. You are making a mistake if you use indicators for entries and exits because every indicator is ...
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365 Hits
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Jul
23

Information Overload

Information Overload
Have you ever felt as if the more you know, the less you know, and the more you become confused? Why is this? People have the tendency to believe that the accuracy of their forecasts increases with more information. This is the illusion of knowledge - that more information increases your knowledge about something and improves your decisions. However, this is not always the case - increased levels ...
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Recent comment in this post
Guest — David Autrey
Please allow me to subscribe to the blog post. Thank you, Dave
Saturday, 08 August 2020 08:19
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  1 Comment
Jul
15

Day Trading or Swing Trading?

Day Trading or Swing Trading?
Hey Joe! Which is more profitable day trading or swing trading? Wow! What a loaded question. Many traders who are just starting out, want to know which type of trading they should focus on. Some traders prefer day trading while other traders prefer swing trading, and quite often traders like to mix it up a bit and trade both styles simultaneously. The most important thing to keep in mind before ma...
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412 Hits
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Jul
09

Getting Rid of Ego

Getting Rid of Ego
Have you ever wondered how to get your ego out of your trading? Have you wanted to be market-centered, but find yourself consistently being self-centered? One thing I know for sure: your self-concept has to be separate from your trading. You began as an individual long before you ever thought of trading. And you exist as an individual beyond the time you spend trading. When personal self-worth get...
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485 Hits
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Jul
02

ATR Indicator

ATR Indicator
How does the ATR indicator work? The ATR indicator stands for Average True Range, it was one of the handful of indicators that were developed by J. Welles Wilder, and featured in his 1978 book, New Concepts in Technical Trading Systems. Although the book was written and published before the computer age, surprisingly it has withstood the test of time and several indicators that were featured in th...
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539 Hits
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Jun
24

The Close

The Close
Why is it with futures that we see the Close at one price, and then a half-hour later it has moved to another price? Why isn't the Close the same as "Last," and what is the "Consolidated Price?" "Last" is the last price at which an underlying stock or futures is traded. It could also be the "Close." The Close that you see within minutes or seconds after trading has ceased may not be the final pric...
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Recent comment in this post
Guest — CES
Thanks Joe FOR addressing a vexing TOPIC that is rarely explained. I’ve have seen CME documentation that futures settlement ca... Read More
Thursday, 09 July 2020 11:23
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Jun
18

Can seasonal transitions help a commodity trader?

Can seasonal transitions help a commodity trader?
Yes! Seasonal transitions create workable Spread strategies. I'll let my Andy Jordan, an expert in seasonal fundamentals, answer. Andy! You have the floor: "Change gives birth to risk – but also creates opportunity. Seasonal transitions create workable spread strategies because markets have to struggle to maintain equilibrium between supply and demand as conditions undergo dynamic change through t...
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365 Hits
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Jun
11

5 Tips on How to Deal with Drawdowns

5 Tips on How to Deal with Drawdowns
After the recent harsh correction in the stock markets and cryptocurrencies, many traders and especially investors currently find their accounts in a not so nice drawdown. So I thought this might be a good time to give some advice on how to deal with such drawdowns. What's a drawdown? Here's a quick explanation: You buy one stock of a company at $100 and after a month it's trading at $120. You're ...
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448 Hits
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Derivative transactions, including futures, are complex and carry a high degree of risk. They are intended for sophisticated investors and are not suitable for everyone. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results, and all of which can adversely affect actual trading results. For more information, see the Risk Disclosure Statement for Futures and Options.