Posts Tagged Trading
I went long on the DOW the other day, see the daily chart of the Dow below... it had hit support and the second time it did so, there was a pin bar pattern indicating strength with the buyers. The second day, you can see continued strength but today, there has been some selling. I went long at the break of the nose of the pin bar and my stop is 5 pips under the bottom of the pin. The trend is down however but this is a reversal play. It is risky considering how weak the market is but this could
May 25, 2012
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Every trader has heard of the trading adage "Hold onto your winners and cut your losers"... in practice, this is actually quite difficult to do as people have a habit of closing their winning trades early to secure their profit but have a habit of holding onto their losing trades in the hope that they may cover. This behaviour is universal for all investors or traders to the stock market and is known as the Disposition Effect.
I recently learnt of the Disposition Effect through attending
May 19, 2012
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People ask me if it's possible to trade with a full time job and the answer is YES, absolutely! In fact, for people starting out trading, this is ideal. One should never give up their full time job for trading as it just adds added pressure if you're relying on trading to pay your bills. I personally think that you only have a chance in making it as a trader if you are able to trade initially with money which 'means nothing'. When I say 'means nothing' I mean, this money you're not reliant o
May 11, 2012
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