Category: Money Trading

Forex Markets - Currency Traders Margins And Trading Techniques: It is no mystery that professional currency traders make a ton of money and live the life of luxury. Yeah, they live in mansions and travel around the world to the …

Making Money - Risk, Leverage And Money Management: All traders should understand the principles of money management, leverage and margin. Unfortunately most new entrants to the market are usually much focused on making money that they forget to defend their …

Currency Markets Volatility - Dips And Swings: We have just had huge moves in the currency markets and some massive trends yet despite these trends being clear on the charts most traders have failed to turn these moves into profits …

Forex Trading Education - Forex Market Demo Account: With the amazing growth of the forex market, you are going to see an astounding amount of traders lose all their money. Unfortunately, they haven’t followed the simple steps I have laid …

Investors Speculation - Trading On Margin: Trading on margin involves high risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you before deciding to trade you should carefully …

Money Management Strategies - Stop Loss Risk Exposure: In the emerging field of financial psychology, study after study has proven that, even with winning odds as high as 60%, only five percent of traders will be in the black by …

Forex Trading - Money Management Trading Plan: Would you like to have a million dollars in your bank account? I do and it comes from trading! Not all types of trading can give you the earning power to make a …

Forex Trading Strategy - Winning Trades With Technical Analysis And Money Management: If you want to trade successfully there are some rules you need to follow. For example picking a good trade and avoiding the bad ones. A bad choice …

Investment Banks Mortgage Backed Securities Credit Crisis Bailout: Everybody who follows the news must have heard about the string of terrible financial developments in the United States. More and more investment and banking companies are going bankrupt or are being …

'Fast Money' Recap: Good as Goldman
TheStreet.com - 11 hours ago
He said there was "a lot of short-covering and program trading" that contributed to the …

Trader A has a win percentage of 75% on all trades while trader B has a win percentage of closer to 40% on all trades. Which trader is more profitable? Of course we can’t answer that as we don’t know …

Okay, traders: Do you know what is the most important aspect of successful futures trading? Is it identifying the trading opportunity? Is it proper entry into the market? Is it the trading “tools” you are using? Is it an exit …

The headline of this educational feature pertains not to swimming but to trading. Most professional traders do not hold onto their losing positions for very long. Once a trading position goes “under water” most professional traders will immediately begin looking …

This week I’m going to be a little controversial because I’m going to put forth some rather bold statements. First, it is possible with small amounts of money and a reasonable trading system to make outstanding rates of return (50-100% …

You lose whatever you risk when tails comes up and you win twice what you risk when heads comes up. If R stands for you risk, this system is characterized by the two R-multiples it generates: 1) - 1R (when …

I did a retreat with one of the world’s greatest traders in 1989. At that retreat he talked about a simple trading system. It was a system in which you flipped a coin. If the coin came up heads, you …

osition sizing is that part of your system that tells you “how much” throughout the course of the trade. And, assuming you have a positive expectancy system, that variable, along with your personal psychology, controls about 90% of the variability …

Before we discuss this topic, let me give you some important background information. I tend to think of trading systems by the distribution of R-multiples that they generate. And the average R (or mean R) of the system’s R-multiple distribution …

Last week I talked about determine your initial risk for each trade and how you could express your profit and losses as a ratio of that initial risk. I recommended that you always have a bail-out point before you enter …

One of the cardinal rules of good trading is to always have an exit point before you ever enter into a trade. This is your worse case risk for the trade. It’s the point at which you would say, “something’s …

Reserves are funds in our account that are held back from trading, and usually parked safely on the sidelines in risk-less money-market instruments. The effect of holding reserves is to reduce net leverage. A workable rule of thumb that has …

Pyramiding is adding to positions as price moves in the desired trend direction. Pyramiding is a highly aggressive trading strategy suitable only for full-time professional traders who know how to control risks and have the discipline to execute a tested …

There is no absolutely perfect money-management tool in futures trading, although purchasing options on futures does limit your risk of loss to the amount paid for the option. Purchasing options does have its disadvantages, however, and I won’t go into …

A frequent question I get from less-experienced traders is: “Should I add futures contracts to my existing market position?” That’s a broad question and there is no single right answer. So, let’s break down the question into some scenarios.