Trading Educators Blog

The last I did a post about what's going on in EUR/USD and that it's unlikely we'll see a significant move unless the pair breaks out of it's established range. Now that finally happened and the Euro is on a strong run for a few days now already. Now what to do? If you're already long, should you keep on holding the position? If you're not in the trade already, should you still buy at the market? ...

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...

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. However, you cannot marry a market or a single trading style. You have to look. Look...

As you can see on the chart below, the 90000 level is an important one. It was a clear resistance level in February and March of this year and could now work as support. I'd try to buy the June Japanese Yen one tick above today's high using the TTE with a first target at around 90470 with the idea of a possible 1-2-3 low. I would risk about $300/contract on the trade. Update 04/28, 6 AM CT: The Ja...

Since many of you are using Genesis Trade Navigator, I thought this might be of interest. I personally use TN mostly for Futures Data, and only sometimes for Forex data - when I just need a quick daily chart for example where I don't mind about a few pips difference. But I don't use their spot Forex Data for backtests. Last week Genesis changed the daily closing time of their FX data to 17:00...

There seems to be a massive obsession out there among traders about the EUR/USD, what's going on with it, where it's going and why. Whenever I go on twitter or Facebook or any of the financial news pages, I find at least a couple of posts on what's going on in that market, usually with some bogus comment on why. Classic one would be "EUR/USD moves higher after breaking through 1.1350" or "EUR/USD ...

The second Episode of my Q&A Series is uploaded to YouTube. I only managed to answer two questions this time, so I probably should be a bit briefer in the future... Topics are disciplined trading and the lifetime of trading methods, and how to decide when to stop trading them. Enjoy!

Let’s get one thing straight. Fear, for the majority of traders is a very real thing. You have it, I have it. Others have it as well. In order to become a professional trader, you must learn to deal with fear. The first step is to acknowledge that you have fear. Once you admit to fear, you can begin to deal with it. When you notice the impulse to trade based on strong fear, it is usually best to l...

This is one of the quotes about trading that stuck with me. I googled it and it's from Ed Seykota, I probably read it in one of the Market Wizards books, which I can highly recommend. The exact quote is “Win or lose, everybody gets what they want out of the market. Some people seem to like to lose, so they win by losing money.” Now this applies especially well to the retail world o...

"I review my checklist. It’s a handwritten sheet laminated in plastic and taped to the right-hand corner of my desk where I can’t overlook it. If you have a game plan prepared ahead of time, it can help you find courage in the heat of the battle.” - Marty Schwartz Yes, I also have a checklist and I look at it every day. On my checklist you can find reminders like “trade onl...

Hi Trader, now this has been a quite volatile week so far in many markets and I hope you've also been able to capture some nice profits out of these wild moves! Thanks to my trading being almost completely systematic right now I still had a few minutes to record a new video for YouTube and actually start of a new Series. In the first one I explain what a BID/ASK spread is for those of you who're c...

“Michael Marcus taught me one other thing that is absolutely critical: You have to be willing to make mistakes regularly; there is nothing wrong with it. Michael taught me about making your best judgment, being wrong, making your next best judgment, being wrong, making your third best judgment, and then doubling your money.” – Bruce Kovner This is an immense important quote from Bruce Kovner. This...

I have received the following question: I assume the Ross Hook (RH) and Traders Trick Entry (TTE) are applicable in whatever time frame the trader uses. However, there are some time frames that are simply too erratic or wild to trade. And pertaining to stop running, there must be some that are favorites of those attempting to do so. So is there a recommended time interval from which to trade, or i...

Hi Traders, after a much needed vacation I'm back from the hills where I could hike long enough to get all relaxed and clear headed again! Now back to the markets, when it comes to currencies, everyone is talking about the Yen these days, especially against the USD (USD/JPY). And yes the USD/JPY dropped quite significantly during the last two weeks, but for the Yen this isn't that unusual. Still i...

Richard Wyckoff wrote: “My stop was moved down so there couldn't be a loss, and soon a slight rally and another break gave me a new stop, which insured a profit, come what might… I strongly advocate this method of profit insuring. The scientific elimination of loss is one of the most important factors in the art, and the operator who fails to properly protect his paper profits will find that many ...

Richard Wyckoff wrote in his book "Studies in tape reading": Successful tape reading requires ability to judge which side has the greatest pulling power and one must have the courage to go with that side. There are critical points which occur in each swing, just as in life of a business or of an individual. At these junctures it seems as though a feather's weight on either side would determine the...

As a professional trader, I try to enhance my trading on a daily basis. Learning how to trade is an ongoing process - a process that never stops. Those who know me or who have traded with me know that I am always looking for a simple and straightforward approach to trading. Yes, of course I am testing indicators, new chart patterns, new charting techniques, and anything else that is showing up on ...

People have the tendency to believe that the accuracy of forecasting the markets 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 of information do not necessarily lead to greater knowledge. There are three reasons for t...

I hope so since thanks to Ambush we're short the USD across the board today. Entry in the Euro FX Future for example was at 1.11825 around the low of the day. 

Just posted a new video on our youtube channel about Trend Following. I decided to look into this in depth a few months ago and these are my conclusions from a traders perspective. Enjoy!