Market Analysis

His trading account had been hemorrhaging for a long time. In fact, he was perilously close to blowing up another portfolio. On some days, Donald would actually be in a trade that was winning, but before it was all over, he would either exit prematurely out of fear at break even or barely above. Or, he would stay in much too long and at those times, he'd watch the price action reverse against him turning what was just a few moments before a substantially profitable trade into a loser. Then, of

Feedback is essential to any knowledge-based performance. You must have a way of knowing "how you are doing" with respect to the variables that make up the process ... in the case of this conversation, trading. Now, there are some traders who would say, "All the feedback I need to know is if I am making money or not." To this I would reply...then why not just go to Vegas and gamble, because if you are not measuring, tracking and documenting your trades, you have virtually nothing with which to

This article, written by Gavin Francis , is taken from the FX Trader Magazine (JAN/MAR 2011 issue). Warren Buffett once challenged Bill Gates to a game of dice. Gates immediately became suspicious when he was offered to choose first from a selection of unconventionally numbered dice. After inspection, he demanded that Buffett should choose first. In fact Buffett had tried to trick Gates with a set of “non-transitive dice”, which had the property that whichever die is selected, one of the other

The price action moved steadily upward on the 5-minute Russell E-mini chart. At that moment, Stacey sighed heavily as she was in a short which was prompted by a level upon level supply zone that she had identified on a 60-minute time frame. She had placed her stop just above the top zone's line amounting to 3 points. She had faith in her trade plan, but the price action seemed to be of another mind. It was perilously close to stopping her out. And, she couldn't help but think about the many

Henry looked at his trade as if he had glanced in the mirror and had seen someone else's face. He couldn't believe that the price action had kept going up and had triggered his stop, taking him out of the trade. It was on the YM E-mini and the long-term, intermediate and intraday trends were all down. He had placed a limit order at the lower line of the 60-minute supply zone that he had uncovered, and his stop was placed 2 points above the upper line of the zone. After realizing that he had