Edge, Not Direction Is The Basis For Strategy

Oft times I am asked where a particular currency is headed. My usual answer – I am a short term trader and have little grasp on forecasting currency direction. Some are smarter and ask whether they should buy or sell a particular currency. My reply – both are acceptable, insofar as they have identified a buy edge or sell edge […]

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 […]

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 […]

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 […]

Trading Is Unfair Play

Is trading really like poker? In both cases, the player makes decisions with incomplete information, reacts with strategies and risks important resources for rewards or losses. There are many similarities – the player must know when to fold, when to push on with larger stakes, and maintain a sensible composure in the most exhilarating and daunting of times. In a […]