02nd September 2010
Single Market Factor #1: Optimal f in Share Market In his 1990 book titled "Portfolio Management Formulas," Ralph Vince popularized a formula known as optimal f. The theory behind this method is that:
• There is a "correct" amount of capital to apply t...
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02nd September 2010
With the proliferation of computers, trading system development seems to have replaced stamp collecting as the hobby of choice. Trading system development is the area where a lot of traders focus the bulk of their attention. And this is not necessarily a ...
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02nd September 2010
One of the keys to long-term trading success in stock market is to develop an approach to trading that removes as many outside (and often irrelevant) influences as possible from the decision making process. At any given point in time there are at least a...
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02nd September 2010
One thing that is very important is to ask the "right" question. This is an extremely simple concept but some traders are doomed to failure because they only look at things one way and therefore don't examine all of the possible outcomes in a given situat...
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02nd September 2010
There once was a trader who adopted a trend-following, position trading approach and was quite successful. His approach was to generate a trading order for the next day after the close of trading each day and to always follow his system. Although he was n...
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22nd August 2010
Here is another example of how futures trading are quite different from everything else in life. In every other endeavor we are taught to think first, and then react. In futures trading—with a caveat to follow—you are often far better off reacting first a...
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22nd August 2010
Stop-loss orders are an important topic when it comes to futures trading in stock market. A stop-loss order is an order that you place with your broker to exit an open position if it reaches or exceeds a certain price. This is often referred to as a money...
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22nd August 2010
As discussed in detail in Section Two, one of the keys to long-term success in stock market is to develop a portfolio which is “right" for the amount of capital that you have in your account.
If you trade “too small" you forego the opportunity to make mo...
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22nd August 2010
Counter-trend in stock market and trading time frame (Day trading in stock market, short-term trading in stock market, long-term trading in stock market, etc.) That is best for you.
Generally, when starting out it is best to settle on one type of trading...
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22nd August 2010
Section One discussed some of the considerations involved in deciding whether to specialize in one stock market or to trade a diversified portfolio of markets. Proper diversification can go a long way towards reducing your risk of ruin. It is a commonly k...
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22nd August 2010
One of the most useful skills that any trader can develop is the ability to identify a trend in share market. If you can identify a share market in an uptrend and enter a long position or identify share market in a downtrend and enter a short position, ...
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22nd August 2010
The only way to avoid Mistake #1 in share market is to devote as much time, effort and energy as needed to develop a trading plan that addresses all of the key elements of trading success, all the while knowing full well that doing so does NOT guarantee y...
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22nd August 2010
The answer to the question “why do traders make this Mistake in Stock Market" could probably apply to all of the mistakes.
The primary cause of Mistake #1 is simply the lure of easy money. The underlying thought seems to be “why Bother wasting a lot o...
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17th August 2010
Drawdowns are the bane of futures traders. When you are making money in stock market, everything is fine. It is when losses start to mount that doubt creeps. The longer a drawdown lasts and the deeper it cuts into your equity the more painful it become...
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