In this screencast I focus on 'lean hogs' and the Mexican Peso v Sterling. The core issue is the ranging pattern on the daily time frame (over the periods I'm looking at). In general these two instruments are highly volatile and risky. However, the pattern creates expectations (not predictions). In other posts I pointed out that certain instruments have a...
Was recently shown this little gem of a ratio chart that will help gauge strength to certain markets such as the stocks and other financial instruments as the S&P, Dow Jones etc So what does it all mean?? The ratio of two diametrically opposed asset classes often provides insightful clues about what investors are doing. The XLY:XLP ratio is a perfect example....
This is under the category of 'Beyond Technical Analysis'. It is about systematic risk i.e. something previously unrecognised that causes major upset in markets. What's *UFOs* got to do with this? Just about everything. Your world has been built on a sense of security that we are alone in the universe. People's religious beliefs, their sense of who is in power...
Greetings, I've spent a considerable amount of time trying to find the magic formula to stay profitable, I've read books, I've heard speeches, I've talked to pros, and I've stayed profitable, BUT... I've also lost quite a bit, I tried coding my strategy to see how it would really perform without sentiments, as executed by a machine and I was really suprised, no...
This is a sequel to our first post on risk management with trades we have actually executed and not using examples from past market data. In this chart, we show how seven trades would be executed and with said trades increase our profits while minimizing our risk. Closing our trades early protect us from any possible "flash crash" situations. You can have a 30%...
In this educational content video I had to cover one the biggest noob trader mistake, trading with too much leverage. That's basically what flushes out almost 80% of the noobs. Getting the margin call, putting more money into trading than you initially expexted. All of this is well known as gambling problems. And the recent flow of beginners who went to the...
This is a shorter video. Something violent is happening on EURUSD at this time. Play safe! :)
While not much is happening, remember to improve on your system more than anything else I believe. Reading every book on TA doesn't matter if you have a dumb system where you're guaranteed to blow your account sooner or later. Here's a friendly reminder on how much to risk on every trade. Suppose a 50,000$ starting account. *** Win 8 trades out of 10 on...
This is about psychology - that 'no-go' area. In this video I explore negative emotions from different aspects. I look at how emotions are connected to risk and risk management. Avoidance is connected both to risk and emotions. I say that the biggest part of trading is about separating emotions from the objective assessment of risk
G'day Cobbers and Shobbers, How are we this morning, did many of you manage to make so profit yesterday? I will start with a quick talk about Edges and trading strategy and how to be profitable from your charts. First if you take a look at the chart linked below from yesterday you will notice I flipped outlooks as the day progressed, I also traded on these...
In this video I explore how the US Dollar strength affects stock markets and the EURUSD. When I was very new to trading I had not known about all this - and late in the game I wished that somebody would have told me sooner. Shorter term bounces of the US dollar can cause traders to exit positions too soon. Around this time day traders could find that...
I briefly mention the political situation in the world that affecting many stock markets. I'm seeing wide swings on a daily time frame, whenever their is good or bad news. Traders would be wise to avoid gambling in these sorts of volatile markets. Those with large accounts can of course take a position and ride out the volatility in following a trend.
Hope this educational content will help you make a better use of the indicators. Remember that these rules are just ground rules. Positions sizes and stops positionning will depend on your own risk profile. This is up to you to find your comfort zone on these parameters. Indicators used in this video are : PRO Sinewave & PRO Momentum Don't forget to hit the...
Warning Long Macro Post ahead! The aim of this post is to open the discussion on risk parity and add insight into why some of the largest macro funds in the world use the strategy of risk parity . ... It is basically an asset allocation concept. -> At what point do we have our portfolio 100% in these ...
One of the major reasons why traders lose money is because they ride out their losses and close profitable trades too early. While being patient can help us to achieve our maximum profit potential, being patient on the wrong side of a trade can be costly. This is a great insight into why we are naturally predisposed to riding out losses and not quitting while we...