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Trading Strategies, Psychology
Accumulating into a Profitable Trading Position: A System Checklist
Position accumulation is to increase exposure to a currency pair, by adding a second (or more) position in the same trading direction. Although on the surface the opportunity to increase potential return is attractive, there are also risks that MUST be at the forefront of your thinking. These principles described in this article are appropriate ...
8 attributes of trading as a business rather than as a hobby – A checklist
Many traders recognise the positive nature of the theoretical philosophy of treating your trading as you would a business, and yet the majority are unsure about what this may mean in practical terms and fail to move beyond the “hobby trader” in their trading activity. Recognising the potential wisdom of a “trading business approa...
Two Advanced Position Sizing Techniques to Consider in Your Trading
Irrespective of what vehicle you are choosing to trade (Forex, CFDs, share CFDs), position sizing is a crucial part of your trading risk management. It is position sizing, along with effective exit strategies, that have an undoubted major impact on your trading results both now and going forward. At a basic level, the following are part of a...
When good economic news is bad news?
Market response to any specific economic data release is far from standard even if actual numbers differ greatly from consensus expectations. Rather the market response is based on context of the current economic situation. This week’s non-farm payrolls, being one of the major data points in the month, is a great case in point. Th...
Trading plan statements – Developing consistency in action and measurement
A written trading plan, usually comprising of several guiding action statements, serves the following two invaluable purposes: Facilitates consistency in trading action e.g. in the entry and exit of trades, allowing the trader AND Measures the strategy used specified within each statement to make an evidence-based judgement on how well thes...
ASX Share CFDs: Timing Entry: “The professionals close the market”?
Traditionally, one of the long-lasting market clichés is that the “amateurs open the market the professionals close it”. Although this may be a little simplistic, there is no doubt that commonly trading volume in equity markets is at it’s highest at the beginning and the end of the day, but of course there are active market participants thr...
5 influencing factors on the impact of economic data in your trading
There are few times when the market (irrespective of trading vehicle) is more likely to move in price quickly than on the release of some economic data. Judging potential market response can be complex as often many data points are released in quick succession but is an important component of overall risk management relating to your trading positio...
Setting Up Phone MT5 Trading Notifications For Pending Orders
The ability to set up phone notifications for trading activity on your MT5 platform has many advantages including of course the opportunity to “Check-in” on the market whist on the move. It could be argued that this ability goes beyond simple convenience and in the case of “pending orders” could be viewed as an important part o...
Position Sizing for ASX Share CFDs ( Free calculator download )
Position sizing is simply the number of contracts that you choose to enter for any specific trade. It is this, combined with the movement in price (either positively or negatively) from entry to exit in your trade, that determines your final dollar result for any specific trade. As this result impacts on your trading capital, position sizing,...
Cognitive Trading Biases #1 – Loss Aversion
As a serious trader, one of the key areas you must work on is to develop an awareness of the way the market affects your mind, and subsequently the decisions you make whilst in a trading situation. What are trading biases? People have inbuilt set of belief and value systems that develop over the years through learning and instruction from others a...
Another New Indicator? – 4 Questions to Judge If It Is the Right Time for You
Invariably, the motivation to look at adding another technical indicator is a belief that your trading results, and the system that creates these, could be improved. As traders, we are bombarded with information relating to the use of technical indicators to guide decision making in our entry and exit decisions. Such information can be “persuasi...
Are You Just ‘Interested’ OR REALLY Committed to Becoming the Trader You Can Be?
Look, we get it… the thought of making money from the financial markets is appealing to the newcomer (and even experienced trader). Appealing enough to invest some time (often a great deal) and some money (often a great deal). At this stage, it is “interesting” (even exciting), but NOT committed. You may even have been told it is easy i...
Are You an Honest Trader? 5 Powerful Questions to Ask Yourself Now
“The least initial deviation from the truth is multiplied later a thousandfold.” - Aristotle We came across the above quote from the famous Greek philosopher and couldn’t help thinking how relevant this is to trading, so thought it was worth a discussion to stimulate some self-reflection of your behaviour and thinking like a trader. ...
Accumulating into a Profitable FX Position: Opportunities and Risk Management
Position accumulation is to increase exposure to a currency pair, by adding a second (or more) position in the same trading direction. Although on the surface the opportunity to increase potential return is attractive, there are also risks that MUST be at the forefront of your thinking. Are you ready to accumulate? Before considering position accu...
FX Trading choices: Open positions and economic data release
Market sentiment towards a currency pair, and hence price, changes when new information comes into the market. The most common situation that creates such a change is the release of economic data. These are planned in terms of timing to theoretically offer no market participant an advantage over another market participant. Economic ...