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Trading Educators Blog

#1 Trading Blog Site

Practical Teaching Derived from over 60 Years of Trading Experience and over 30 Years of Mentoring .  Click here to learn about private mentoring with Master Trader Joe Ross.

Apr
19

Disciplined Trading

​Disciplined trading is critical for lasting success. Profitable trading requires a combination of skill and probabilities. The winning trader implements proven trading strategies over and over, so that across a series of trades, the law of averages works in his or her favor. Unless you make trades, you have no chance of winning. The more times you try, the more likely you will succeed. An importa...

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  1750 Hits
Apr
11

Strategic Trading

​Successful trading is part reliable method and part mental edge. Without a sound set of methods and financial resources, it is impossible to trade profitably. Your method should also have a good track record, and it is essential to have enough capital to allow your method to work in terms of realistic position sizes and the number of losing trades you can afford to take before you hit upon a winn...

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  1479 Hits
Apr
04

Turning Points

To the best of my knowledge, no one has ever figured out a truly accurate way to figure out future turning points. As far as I know, it has never been done. I don't believe that it will ever be done. I have encountered traders who have told me that so-and-so does it, but I have never seen the proof. Nevertheless, I'm willing to listen. I used to live in the "show-me" State of Missouri, so show me!...

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  1609 Hits
Mar
27

Realism and Flexibility

​Eternal optimists often make the best traders. The winning trader engages in a constant search for innovative ways to take profits out of the markets. It takes a positive attitude to persist in the face of almost endless setbacks. If you are an optimist, you will pick yourself up gracefully after a loss. When you can't seem to find a high probability setup, you'll keep searching until you find on...

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  1449 Hits
Mar
25

Realism and Flexibility

​Eternal optimists often make the best traders. The winning trader engages in a constant search for innovative ways to take profits out of the markets. It takes a positive attitude to persist in the face of almost endless setbacks. If you are an optimist, you will pick yourself up gracefully after a loss. When you can't seem to find a high probability setup, you'll keep searching until you find on...

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  1434 Hits
Mar
29

Your Own Worst Enemy

​Do you ever wonder if you secretly want to fail? It's hard to believe, but some people do want to fail. They may not want to do better than their parents, and secretly, they set themselves up for failure. Others fear success. They associate success with added responsibility, and they want to avoid responsibility at all costs. But if you're like most people, you want to succeed. For whatever reaso...

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  1566 Hits
Mar
21

Don’t be Frustrated

​How well have you been doing in the markets these days? There have been many opportunities in the past few weeks, but an abundance of market opportunities, don't always guarantee success. Setbacks can be the rule rather than the exception when it comes to trading. Discovering reliable trading strategies is a challenge, and frequently, a promising strategy produces a series of losses, especially u...

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  1878 Hits
Mar
15

Mental Momentum

​Mental Momentum drawdown, you can feel a little disappointed, a little stunned, as if you have fallen, and you are having trouble getting up. After you've made a series of successful trades, however, you can feel much more powerful, as if you can relax a little bit. And when you feel relaxed, you also feel creative, and can think of winning strategies. Everything seems to click and you start...

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  1614 Hits
Mar
07

A Flash of Light

It has often been said that trading is not rocket science. I believe that. You don't need to be as brilliant as a rocket scientist to trade the markets profitably. I know I'm not that bright. That said, there are moments when a trader has a brilliant insight and takes home huge profits because of it. (I don't know any rocket scientists, but I'll bet that a rocket scientist isn't brilliant every wa...

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  1584 Hits
Feb
28

What’s Next?

​It is Tuesday, and you've been watching the markets closely for the past two weeks. It appears to be the fulfillment of your dreams: prices are making new market highs. You wonder, "What is the smart thing to do?" On the one hand, you can go long, but will this optimism last? Oil prices are still high, but they are lower and a little more stable compared to last summer. Everyone is hoping that co...

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  1473 Hits
Feb
21

Quick Thinking

Have you ever watched the last minute of a close football match and felt excited? When you are anticipating what will happen next, you often feel a little high, especially if you expect a desirable outcome. Humans like excitement. Whether it is a traffic accident on the way to work or the last scene of a murder mystery on television, we like suspense. Trading is naturally exciting, but if you are ...

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  1470 Hits
Feb
08

Visualization

Under what conditions would you like to trade if you had your choice? You would probably want to trade in a strong bull market, be way ahead so that a loss wouldn't hurt at all, and have a foolproof trading plan. In addition, you would want to have a mental edge. You should be in a good mood, alert, and ready to take action. We can't always trade under such ideal conditions, however. If you are a ...

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  1711 Hits
Jan
31

Managing your Trading Business

​Keeping Losses Small I cannot say this enough times, so I'm saying it again, you must learn to keep your losses small. It is the single greatest concept that I can show you that will help you make profits in the market. This principle is of such magnitude that it dwarfs all other principles for trade, money, and risk management. Did you know that if you keep your losses small, you can flip a coin...

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  1727 Hits
Jan
24

Chart vs. Technical Analysis

​Is there a difference between chart analysis and technical analysis? In my opinion there is. I am surprised at how many traders lump charting together with technical indicators into a category they call "Technical Analysis." I am often accused of being a technical analyst because I am not a fundamental analyst. In the past, I've often carelessly, and without much thought, allowed myself to accept...

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  1587 Hits
Jan
17

Covalency

​Someone asked, "What in the world is 'covalent bonding of futures pairs?'" Covalent bonding of futures pairs is said to create the best trading system portfolio structure. After the most stable individual futures parameters have been selected, the optimal portfolio should be created. Atoms share electrons to form molecules of a substance. This same covalent bonding process finds the trading syste...

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  1507 Hits
Dec
20

Win or Lose: You Are A Winner Every Day

​Have you ever spent the day making trade after trade and gotten nowhere? You may have wondered why you woke up that morning, or even bothered trading that day. Perhaps there have been a few days where you've felt this way this week. It's been a hard week so far. If you aren't doing very well, it is understandable. Uncertainty abounds. On days when you are feeling unproductive, it's important to h...

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  1527 Hits
Dec
15

Note from Braam Avenant

​Some have asked for more information about Point and Figure charts. Here's a message from our friend Braam: P&F as I do it is a whole different method of short term trading than you will find in any book. As I always want to improve myself, I have bought all books on P&F. Most of them were a waste of money. But the best I have ever read is "The Definitive Guide to Point and Figure" by Jer...

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  1650 Hits
Dec
06

Erratic Markets

Recently, I was asked the following question: Do you trade strictly by technical analysis or do you still try to watch the fundamentals as well? For years I have differentiated between chart and technical analysis. Please allow me the courtesy of calling what I use as primarily 'chart' analysis, secondarily at times, technical analysis and when I think it is appropriate I throw in a bit of fundame...

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  1774 Hits
Nov
29

Can exchanges change the rules any time they want to?

​The answer is yes. Such an event happened at the Comex a number of years ago! It was called the "Great Silver Fiasco," which was associated with the Hunt brothers. Silver made 19 consecutive moves to the downside, and destroyed several individual commodity traders, when the Comex Board of Directors changed the exchange rules to allow silver prices to fall and not rise. A "liquidation only" restri...

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  1703 Hits
Nov
14

Sinful Trader

From time to time we get this very important question: Is trading a sin? Often this question comes from people in ministry who want to become traders in order to fund various church activities. The answer is: No, trading is not a sin, but trading without knowing what you are doing can lead to a lot of problems. Trading in and of itself is not considered to be gambling. The futures markets exist as...

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  1871 Hits

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.