facebook  youtube  blogger

Trading Educators Blog

#1 Trading Blog Site
Aug
08

I just can’t seem to accept uncertainty and risk. What can I do?

​ I'll try to give you a few things to think about, but unless you can overcome your inability to accept risk, you don't have much of a chance to make it as a trader. Trading and risk are virtually one and the same. Shorter term trading isn't about using a buy-and-hold strategy, and minimizing risk by holding on for the long-term. Short-term traders capitalize on volatility and the fact that volat...
Continue reading
  169 Hits
0 Comments
169 Hits
  0 Comments
Nov
07

As a percent of capital, should I go big or small?

Careful risk management is a key component you being able to trade at your best. Comfort level is really important when it comes to risk. You need to be comfortable in three areas: Emotional, Mental, and Financial. We could even add Physical to that list without having to make too great a stretch. If there is a real danger that you will lose large amounts of capital, or money that you just can't a...
Continue reading
  1257 Hits
0 Comments
1257 Hits
  0 Comments
Oct
27

Overconfidence

When traders are hot and seemingly cannot lose: When they make several trades that perform exceedingly well, there is a surge of human pride. They feel like the pitcher who strikes out the side for all nine innings of baseball. They feel invincible, brilliant, and master traders to say the least. When a trader feels like that he thinks he can do no wrong and make no mistakes. He comes to believe a...
Continue reading
  1373 Hits
0 Comments
1373 Hits
  0 Comments
Sep
29

Why Pips Don’t Matter!

On a regular basis I get questions regarding Forex Trading in general or AlgoStrats:FX like: - How many Pips do you make per month? - How many Pips does a good trader make per month? - Does your Strategy make 100 Pips a week? Additionally to that, there’s advertisements all around that promise traders 1000 pips a month or performance reports that look like this: This month trades: 27 Sep: GBP/NZD ...
Continue reading
  1619 Hits
0 Comments
1619 Hits
  0 Comments
Jun
08

FOREX VS. FUTURES

What’s better to trade the currency markets? Trading Futures or Forex? This is the question I try to answer in my new video, where I briefly discuss the major differences between trading Futures and Forex from my perspective. At the end though there’s no “right” answer to that question, as it really depends on your needs.
  1806 Hits
0 Comments
1806 Hits
  0 Comments
May
12

How much to risk per Trade

How much to risk per Trade
One of the questions every trader has to think about at some point is, how much of my account should I risk per trade? A percentage? If so, what percentage? I’d love to have the right answer in my pocket for you, like "exactly 1.25% per trade/market and no more than 5% at the same time," but unfortunately, I don’t. Again I know you don’t want to waste too much time with this bo...
Continue reading
  2346 Hits
2 Comments
Recent Comments
Jean1975
Great post. In my humble opinion carefully managing risk with a proper position sizing and shutting down quickly the losing trades... Read More
Thursday, 12 May 2016 15:48
Marco Mayer
Thanks Jean! Unfortunately posts and videos about anything related to risk-/money-management aren't the most popular ones. So I'... Read More
Friday, 13 May 2016 02:28
2346 Hits
  2 Comments
Apr
29

Position Sizing/Measuring Performance

About a year ago I wrote an article about measuring performance where I explained the concept of measuring trading performance in Rs instead of $s. Everyone who trades for a while quickly realizes that $s don't really say too much about performance. You made $10? Maybe great. You made $50.000? Maybe not so good. The question always is in relation to what? What account size does the t...
Continue reading
  1769 Hits
0 Comments
1769 Hits
  0 Comments

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.