Exit Efficiency Ratio
Jul11

Exit Efficiency Ratio

Exit Efficiency Ratio| The amount of literature that focuses on trade entries to me seems to have a positive correlation with why I only seem to hear traders talking about entries. It invariably seems bizarre to me that entries are discussed a lot more than exits, when exits are the primary source of profits.  Entries should only be looked at as something that starts a position, not as something that is responsible for profits. Exits...

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Should morality play a role in your trading or investing?
Jun29

Should morality play a role in your trading or investing?

When trading, I use a technical trading system. This system is solely based on the numbers shown on the chart. Those numbers are filtered by other tools in the software, but all calculations are based on the price and volume of stocks in those tracked indices. In trading this type of system, my job is to scan an index. If the system says that the trade fits all requirements, I go to step 2, which is following the systems parameters...

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Is short selling evil?
Jun25

Is short selling evil?

  I’ve both witnessed and participated in debates on whether or not short selling stocks is wrong or harmful to companies or market participants. Short selling is essentially betting that the price of a commodity, stock, bond, or currency will go down in the future. It works through borrowing the stock from a broker, buying it back at a lower price, and keeping the difference. According to Investopedia.com ‘Short...

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Paper Trading – Not for everyone, but it’s for you!
Jan13

Paper Trading – Not for everyone, but it’s for you!

  Paper trading is the practice of choosing and tracking stocks without actually using real money. Some people literally paper trade by writing their trades on paper, while others use paper trading services offered by trading websites. A while back I was going through a few blogs and articles on the subject of paper trading. Some of the writers were for the practice, while others didn’t seem convinced of its practicality. Those...

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What Is Trend Following? | Trading the Trend
Oct27

What Is Trend Following? | Trading the Trend

What Is Trend Following? | Trading the Trend What is trend following? Many of us follow fashion trends. In some places, coloring your dog’s fur may be trendy. In other places and times, we follow popular hairstyles. How does one follow a trend? To do this, you see a guy say, wearing a mullet haircut. You take notice, saying to yourself, I like how he combines the short front with the long back. You like it, but not enough to grow one...

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Size Matters
Sep11

Size Matters

We’ve already touched on the importance of your account size when I talked about money hungry service charges, but I’m about to beat a dead horse a little more here, and focus on account size alone. Account size is a big issue when it comes to trading.  A larger account gives you more freedom as far as trade frequency. On the other hand, a large account can also just mean more money to lose over a longer period of time if your risks...

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Money Hungry Service Charges
Aug31

Money Hungry Service Charges

Some of the greatest obstacles to profitable trading are transaction costs. Transaction costs can easily eat, eat, eat away at a trader’s account, especially when starting out with less capital. Some trading methods, such as scalping involve many fast transactions. Before employing such methods, a trader should test these methods out, taking transaction costs into account. Some theories start out with the idea of taking many small...

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Do you trade?
Aug03

Do you trade?

Are you interested in trading? Do you trade? If so, what do you trade? Futures? Stocks? Options? Currency?   What is your method of trading? what makes you buy? What makes you sell? Tell about How you go about your trading.   Tweet Share this:TwitterFacebookEmailPrintGoogleRedditLike this:Like...

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Accepting Loss
Jul29

Accepting Loss

  One of the fundamental principals of trading stocks, or anything for that matter, is; you never play with money you cannot afford to lose. You should not be trading money needed for car payments, rent, food, diapers etc. The reason for this is, no matter how sound a system or piece of advice may sound, trades often go against you. Trading money you can afford to lose means that you have money to live, some money saved for a...

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