When it comes to helping traders learn how to trade smart and manage risk, there is lots of gray area. One of the darkest gray areas is when it comes to risk management. I realize this can be frustrating when trying to learn, but it is what it is. What makes things so gray? Let […]
Thanks to a comment from YouTube, we have a great real life example of how when you don’t know what you don’t know, it’s hard to know what to do is certain situations. While this is only a small example, it does a fantastic job of illustrating a much broader concept that many traders are […]
Have you ever found yourself locating a trading set-up that meets all the rules and criteria of a strategy only to hesitate and then find yourself saying, “Ah! I would have been right!”. To take it a step further, have you then found yourself saying, “That figures! The trade I don’t take is a winner, […]
Yes, the rule is very stupid and as I will show… extremely dangerous in regards to what it can cause to happen. With that being said however, the rule “is what it is”, so you need to be very aware of how you should and should not be allowing this rule to influence and form […]
One of the trickiest parts of the market is that even when you are following every single rule of your strategy, you can still lose money. With that being said, I want to “talk context” in this video that can hopefully shed some light on why this may be occurring to you and your trade […]
If you’ve spent any amount of time at all on message boards or social media in the world of penny stocks, I’m sure you’ve heard people start to throw around “the shorts”. Whether they’re being blamed for a falling price or whatever, the point is… people are talking like “shorts” are a routine part of […]
There are many opinions and definitions out there regarding the amount of money you should be putting into a trade compared to the size of your trading account. Some say no more than 5%, others say slightly more or even less. I won’t call some of these definitions wrong, but there is an aspect of […]
‘Controlling’ risk is a very important concept for anyone looking to trade the markets. With that being said, ‘understanding’ risk is a whole other topic and one that many traders fail to realize. The professional traders both control and understand risk, so let’s figure out where you stand in this situation. Bobby-Traps In Trading
At the core of trading, there is one question that MUST be answered. While the question seems obvious and innocent, it truly will determine whether or not you will make money trading stocks, options, Forex, futures, etc.
The universal thought process among most traders is that there are only two order placement types: buy and sell. This is simply not true. It’s for good reason though, your broker does not want you to consider/realize the third available order type.
Have you ever been in the situation with your stock or option position where you are unsure if you should “hold” or “sell”? I don’t know about you, but I find myself with this problem every day. The good news is, there is a very straight-forward and highly effective solution to this problem as I […]
This is a concept that all traders must understand. The trickiest part about all of it is the seemingly “obvious” nature of the numbers. But when you stop and take a closer look, you will see that for those people trading the markets, it can turn a bad situation into a total disaster.
As obvious as this sounds, you need to be in total control of your trade plan. Yet, time and time again, I see traders not controlling their trade plan, but rather, “being controlled” by it. How is this possible? It all boils down to this sneaky little virus that can slip into your thought process […]
The averaging down strategy is a hot topic and one that is seemingly always being debated. I am asked often about my thoughts on this trading approach/philosophy, so let’s break things down in this video. As you will see, I don’t use my “opinion” as the judging factor, I use “math”.
Outside of stock trader psychology, risk management is one of the most important components you need to have in your tool belt of understanding. What is risk management? What is meant by risk vs. reward? I take an experience we have all encountered and use it to explain this trading concept.
Learn about the 5 tools I use to find trading setups (including 3 that are completely free).