Many Markets Many Opportunities

Should we trade just one or many markets? The more able and ambitious the trader, the more markets he can trade to maximize his returns whilst minimizing risks. Let’s get this out of the way – this is NOT a version of portfolio theory for maximizing returns through effective differentiation. Elegant as the mathematics may be, the Nobel laureate himself […]

Risk More, Earn More

“Have you increased your trade size?” – A friend asked me point blank. We have not met for several months, and he stuffed this in my face. What happened to “you look great?” What a ___? (I know you are reading this.) I fumbled “yeah, of course I have, well … ” and whatever soundbites I could piece together as […]

Still living in the past

In 2012, in one writing blitz I wrote a 65 pager for posterity,… here’s page 1. I hope it is illuminating to you as it is still to me. “Notes to Trading (for the average Joe) A trading system is merely a systematic approach towards the market place. A trading system with an edge is one that favors the probability […]

The Better Man, The Better Trader

Over 3 years have flown by since I started trading – just a small part of the last 15 years I devoted to finding myself. Except for a compulsory 2 years’ stint in the military, no job or vocation had penetrated me  with as much depth. Trading had been a highly personal interaction not only with the market, but always […]

Edge and Emotions

Simply, an edge gives you an advantage in a trading opportunity on a generally consistent basis. It does not guarantee an outcome. It does not give you control of an outcome. In trading, our emotions gift wrap our perceptions and thinking. Even when we can see through coloured lenses, logic may still lose the contest of will, and we execute […]

Giving Up, Letting Go

A person’s journey is marked by the milestones he leaves in his wake. Imagine how short that journey will be if he keeps carrying the marker stones around. Recently my son was preparing for his first story telling competition. The young lad slaved without break and was all pumped with vivid imagination. He finished his first draft with a flourish […]

The Beginning Trader

The Beginning Trader A few days ago, my friend (a reasonably new trader) was lamenting over his losses and mistakes.  He felt miserable.  If not for his naturally glowing persona, I presume he would have fallen into depression. I wish I could help him, but really I couldn’t do more than lend him a listening ear.  There is no secret to […]

Three Nuggets

Today marks the 3rd anniversary when I left a full time job and started trading.  I have penned this article as a mini celebration. Someone theorized if we reverse a terrible trading system (eg.  one with a 20% winning probability) and buy when it signals to sell, we should have a very solid trading edge with an 80% win rate …… sorry […]

The Pig Headed Approach

Should a forex trader specialize in a limited number of strategies and apply them across a multitude of forex pairs?  Or limit the forex pairs but beef up  the number of strategies he can wield to trade any market condition?  The former means one can find the highest probability trades from a plethora of forex pairs, whilst the latter means one can always trade optimally […]

How Much To Bet?

Any financial market opened to risk taking is a casino. A friend asked me how much to risk on each Forex trade.  I reprised what Ed Seykota has advised : Risk no more than you can afford.  Risk enough so the win can be meaningful.  If you cannot achieve both – don’t trade. That about sums it up:  How much one can afford to […]