Why Give Away Trading Ideas That Work?
New traders often approach educational material with the attitude that if it’s free, it can’t be any good. They willingly pay thousands of dollars for courses and systems, and they are often disappointed.
Michael Carr
A COT Strategy for Stock Market Indexes
Diversification is an effective risk reduction tool and should include trading different strategies. Almost all trading strategies consist of rules that use price as an input, and almost every trading indicator relies solely on price in its calculation.
Does the Fed, or any News, Matter to Traders?
With limited test data, we can say that news matters in the short-term, but doesn’t generally have a long-term impact.
Trading with Indicators
Over the years, analysts have spent countless hours looking for an edge in the markets. Much of that time has been devoted to finding new ways to measure momentum or find overbought/oversold extremes in the market.
Real World Trading Costs Include Errors
A trading magazine recently published an article about a university that runs a FOREX fund as part of its undergrad business program. The students manage $2,500 in real money and learn how to trade.
Three Indicator System: 27% a Year Returns
Trading for a living requires steady returns. Equally important, and often overlooked, is that you must avoid big losses to stay in the game. Gains and losses are asymmetric and the math is well known – a 10% loss requires an 11% gain to break even; a 20% loss will need gains of 25% to fully recover.
Trading Activity Can Hurt Performance
Value investors in the stock market spend a great deal of time studying the words and actions of Warren Buffett. He has delivered amazing returns in the stock market for decades and created great wealth for himself and others.
Forex Trading Leverage and Costs
Many people would like to trade for a living, but the biggest problem they face is a lack of capital. In order to make a living trading in the stock market, traders really need to plan on having an initial balance of at least $100,000.