Day traders must control their emotions. The slightest lapse in controlling your emotions will ruin your accumulated hard-earned profits overnight. For instance, after having several losses in a trading session, you are afraid of having a losing day. This fear spurs you to over-leverage and blow up your trading account with a single trade. How […]
Archives for November 2014
Position Sizing – The Most Important Trading Rule
Imagine a trading setup with 99% chance of winning $100 per contract, and 1% chance of losing $100 per contract. I’m sure you agree that it is an excellent trading opportunity by any standard. I’m not sure about you. But I’m tempted to borrow as much money as I can from my family, extended family, […]
Flipping Support and Resistance for Swing Trading
The best swing trades seldom hang in the air. Swing traders love having a support or resistance level working for them. However, they often lack a clear method for taking advantage of market support and resistance. To build a systematic trading approach, we will take a look at “flipping support/resistance”. For a trending market, the […]
10 Cognitive Biases That Plague A Trader
Traders are humans. As humans, we are affected by cognitive biases. Being biased is not fatal, but it is an obstacle to your goal of trading successfully. The bad news is that you will never entirely overcome your cognitive biases, as long as you stay human. The good news is that once you are aware […]
