Every trader/investor must guard himself against drawdowns, which refer to the percentage drop in his account size after one losing trade or consecutive losing trades. For example, imagine that after losing a few trades in a row, your $20,000 account is reduced to $12,000; that would be a drawdown of 8,000/20,000 = 40%. If I [...] Read more »
Definition of perfect Stops and What your financial advisor is hiding from you.
Most traders have had the painful experience of setting their risk stops only to have the price retrace to their stop and take them out before continuing in the trend. Although some traders swear that other traders are "running the stops," actually what happened is the trader placed the stop too tight. Note: At times [...] Read more »
Five Characteristics of Successful Traders
As a former money manager I associated with a lot of other money managers. Some of them were successful, some of them were not and none of them ever taught their systems. They all said I was crazy when I said I was going to teach my system. But knowing what I know about volume [...] Read more »
Screwflation
Finally – we’ve got a word for what most of us in the so-called middle-class have been feeling the last few years – Screwflation. As far as I can tell, Doug Kass at TheStreet.com invented it back in Oct of 2010. He defined this way: “Screwflation, like its first cousin stagflation, is an expression of [...] Read more »
Trade Currencies Without Trading The Forex
Trade Currencies Without Trading The Forex Many people, including experienced investors, realize that there is money to be made by trading currencies but have no idea where to start in the forex market. There is, however, an alternative in currency ETFs. These ETFs track an individual foreign currency or basket of currencies by utilizing futures [...] Read more »
Fear, Greed and Money – Short Test To See If You Sabotaging Yourself?
Today it’s time to talk (again) about investing and trading and how your emotions will damage your investing and trading returns unless you have an effective method for circumventing them. I keep going back to this topic because it pretty much determines if you make it as a trader or not. There are lots of [...] Read more »
News story confirms what I’ve been saying about insider trading
If you’ve ever heard my f.r.e.e training webinar I share about how Hedge Funds hunt retail traders risk stops. I also talk about how insider trader, front running, and churning happens every day. Well here is short powerful recent news article about a conspiracy with several top funds that is currently being investigated by the [...] Read more »
Forex Broker Scam
I warned members last week on my live webinar that most forex brokers hunt traders stops. Well a few days after saying that the NFA (National Futures Association) validates what I’ve been saying for years by handing out large fines to two big Forex brokers for that exact reason. Click below to see the NFA’s [...] Read more »
Scuba and Trading
It just occurred to me that trading and scuba diving have a lot in common. I was thinking about how traders must follow their plan while in the midst of a trade and realized that’s what I do when diving, especially deep diving which is my favorite sport. When I’m on a dive boat, planning [...] Read more »
Wal-Mart response and the REAL debate: Health Care
Wow my Wal-Mart email got responses from both sides of the spectrum, so I’ll keep this short. I think a few subscribers missed the spirit of the message. Debt is bad. My house is paid for and I encourage you to work toward the same. Even though I can afford a mansion it is not [...] Read more »
