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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.

Jun
22

Histograms

Joe do you look at volume using a Histogram? Wouldn't it be better to chart volume as an oscillator? A Histogram is a graphical representation that organizes a group of data points into user-specified ranges. It is similar in appearance to a bar graph. The histogram condenses a data series into an easily interpreted visual by taking many data points and grouping them into logical ranges or bins. H...

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  613 Hits
Jun
09

Can You Believe?

Joe's Trading Tidbits Can we believe the reports the government puts out? Can we use them in our trading? Since I am not much of a fundamentals trader, I tend to stay away from government statistics. To me, they have very little value. As far as I can see, they are full of errors. Let me explain. What's wrong with traditional statistics? They fail to measure what is really going on in the economy ...

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  415 Hits
Jun
07

CAN YOU BE TOO BIG?

A lot of people wish they could trade more contracts or more shares. But I try to tell them that there is a point of diminishing returns and diminishing productivity – two laws of economics. People have an erroneous impression that, if they could only trade well with a couple of contracts or 100 shares, they could do even better with 100 contracts and thousands of shares. However, that is not quit...

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  576 Hits
May
04

Risk Management: Protecting Your Account Balance and Your Emotions

The markets go up and down, and so will your account balance if you are not careful. Winning traders manage risk. There are many ways to manage risk. Some traders patiently wait for high probability setups, while other traders limit the amount of money they risk on any given trade. What strategies do you use to manage risk? How do you compare with other traders? A group of traders were asked to ta...

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  493 Hits
Apr
20

Beliefs About Money: A Possible Source of Self-Sabotage

Do you have trouble following your trading plan? Many novice traders do. They develop a plan with specific guidelines as to when to enter and when to exit. The night before it all seems so clear, what they are going to do and how they are going to do it. But when the markets open the next morning, they are persuaded by a little voice to throw the plan out the window. It's a common ailment, and man...

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  607 Hits
Apr
13

The Cynic and the Realist

In the trading business, it's prudent to take everything you hear with a grain of salt. Our field is full of false prophets who claim they can make you rich quickly and easily. Realistic skepticism is healthy. For example, there are many traders who made huge profits in the late 90s, and now claim that they can help you live comfortably by trading a $10,000 account. How do you do it? It's easy, th...

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  488 Hits
Apr
06

Wishing Upon a Star

When you wish upon a star, what do you wish for? If you're like most people, financial freedom is one of the first things on your list. If you had a million dollars, think of what you could do. You wouldn't have to ever work again. You could just sit on the beach and relax. But if you're like most traders, you couldn't stay away from trading even if you had infinite wealth. What else could you wis...

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  496 Hits
Mar
23

Instant Income Guaranteed

Hi, Master I have a few questions that I don't quite understand, about Instant Income Guaranteed. Please explain to me, thanks. Q: "Only take the trades you can afford, keeping your put cover ratio at the advised strict minimum of 50% (80% preferably)"----Could you tell us how this data (50%-80%) is measured? A: If you have a $100,000 account you would use only $20,000 of it for trading IIG if you...

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  484 Hits
Mar
16

Rekindle Your Hidden Passion for Trading

After months of trading in a slump, Jake tells his best friend, "I think I want to quit the trading business. Why am I doing it? There must be a better way to make a living." Have you ever felt like Jake? Trading can be stressful and demanding. It's understandable to feel like throwing in the towel at times. If you are ready to find a new job, or if you just don't seem to have the same passion for...

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  493 Hits
Mar
09

Q&A - Questions from a Student in Europe 

Q: Hello! I bought the Trading with More Special Set-Ups Webinar Recording. Do you think it's a good idea to trade on EURUSD, GBPUSD, USDJPY, AUDUSD, USDCAD, EURGBP on 1h chart with the rules given in the webinar? A: Yes, you can trade all Forex with the special setups. As a matter of fact, you can also trade futures, CFDs and stocks with these same rules. Q: Take Profits 1:1 or 2:1 - which will b...

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  484 Hits
Jan
26

A Personal Message from Joe Ross dated February 12, 2014

Dear Traders,  After going through my email, I came across a personal message from Joe Ross to his students and wanted to share.  I did make a few changes to omit outdated information, but other than that, below are Joe's words.  Enjoy! ~ Martha Ross-Edmunds From: Joe Ross' Personal Letter - Trading EducatorsSubject: Personal Message from Joe Ross at Trading Educ...

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  558 Hits
Jan
12

Confident, Persistent, and Profitable

Are traders naturally born to trade? Can anyone learn to trade? What is the ideal psychological profile of the winning trader? At Trading Educators, we have tried to find answers to these questions, but definitive answers are often elusive. We keep trying, though. We've surveyed traders and interviewed them. And we have tried to analyze the interviews made by others. Our conclusion: There doesn't ...

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  690 Hits
Jan
05

Seeking Protection from Loss

You must risk money to make money. It is sad, but true. You cannot possibly make profits in the markets unless you take some risk. Many people hate taking risks, especially with their money. However, risk is a part of everyday life. We take risks all the time, even when we complete the most mundane tasks, such as driving our children to school, or flying home to visit our family for holidays. We e...

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  565 Hits
Nov
17

All-In Perspective

As a beginning trader, Chuck had just put on his tenth trade. He was still new to trading, but he was optimistic that he would be successful. He wanted to succeed. He thought, "I want to prove that I'm a good trader. I hope I do well on this trade. The outcome is critical to the rest of my trading career." Chuck's thoughts and feelings are understandable. Whenever we start a major endeavor - start...

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  616 Hits
Nov
09

Accepting the Chaos

A bird flaps its wings. A storm strikes miles away. According to Chaos Theory, a seemingly irrelevant action can precipitate, and contribute to, a major event. The right set of factors comes together, and a major event takes place. It's easy to imagine an unlikely chain of events that may initiate a market move. A housewife attends to her crying child who has tripped over the newspaper, and in doi...

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  669 Hits
Nov
03

Pressure

Sometimes I get some really strange questions in the mail. The one that follows is one of them. Although I try to be like "Rambo" when I trade, I haven't in actuality fully achieved "Rambo's" degree of "coolness." "Is it really true that you are able to stay calm and relaxed when you trade? Are you saying you have never cracked under pressure?" There have been times when I made mistakes under pres...

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  670 Hits
Oct
27

Get Back on Track

This is good advice outside of Trading as well. "Have you ever had a bad day and wanted to stand aside until the feeling passed? Sometimes it is a good idea. It may be necessary to take a break, relax, contemplate, and refocus on the task at hand. The winning trader trades freely and effortlessly and it is vital to trade with such a mindset. Traders are similar to star athletes who perform at thei...

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  598 Hits
Oct
20

Initial Capital vs Earned Capital

Traders are always more concerned about protecting their initial capital, rather than gains beyond that amount. In fact, traders become careless with gains beyond the amount of their initial capitalization. For some strange reason, traders do not treat newly earned capital in the same way as initial capital. Of course, this is the height of foolishness. There is no difference between initial capit...

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  675 Hits
Oct
13

Can You Trust Your Intuition?

I am to some extent an intuitive trader. I suppose there are some who are much more intuitive than I am, and some who are less so. I'm convinced that most people who begin trading think of it in purely mathematical terms. If the ultimate multiple regression equation could be devised, one could simply put in the inputs and get the outputs. And the outputs could be used to forecast the markets. The ...

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  615 Hits
Oct
06

Frustration

From a letter I received: ...I'm so frustrated. I have far too many losses. Now I have an anxiety attack every time I trade... Can you help? Losses and setbacks can be the rule rather than the exception when it comes to trading. Discovering reliable trading strategies is not so much the challenge as is learning what to do when things go badly. Learning a strategy is one thing. Learning how to mana...

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  721 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.