An old friend shared how discouraged he was with not being able to manage his impulsive trades. That evening we decided to observe how he traded the US session. He certainly was hard working and eyeballed every 5 minute bar. He had a reasonable trading strategy, but on several occasions strayed from the original plan, and “analyzed” various opportunities on the fly. Quite […]
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 […]
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 […]