Financial Trading

Arrgh! 90% drawdown, what now? *starts crying*

Arrgh! 90% drawdown, what now? *starts crying*

Remember last week I told you about a strategy that had been making 7% per day? Well, it was until it grew to a size too ‘unwieldy.’ And the trader’s own orders began moving the market against them costing valuable pips on both entry and exit. And do you remember me explaining how the strategy […]...

See why ‘tactical’ strategies choke and die

See why ‘tactical’ strategies choke and die

Imagine: you’ve spent weeks, months even, developing a trading strategy. Your back-testing is complete. And on paper this strategy has the potential to make an eye-popping 7% return on account per day. Yes, 7% return on account PER DAY! That’s not 7% per year. Or even 7% per month. Every evening, as you lay your […]...

The deadly dangers of ‘over-prepared’ trading

The deadly dangers of ‘over-prepared’ trading

When you are over prepared you run the risk of ‘marrying’ your market opinion. All that hard work went into doing your analysis – it’s easy to become blinkered to any other possibility but the one you envisage. You may analyse the markets yourself, or you might invest in the picture put forward by a market […]...

The indisputable top-priority for traders

The indisputable top-priority for traders

You never really know what the market will serve up next. Will it be a profit or will it be a losing trade? Consistent profits actually come from a random pattern of winning trades and losing trades. It’s only when you’ve got a proven system in place you’ll have a good idea of its performance […]...

A System V Strategy Death Match

A System V Strategy Death Match

A question comes in from a TN reader: ‘Aren’t you contradicting yourself when you’re dissing off the peg “forex systems” at the very same time you’re promoting the use of them?’ It’s a fair point, and one that probably needs a bit of explanation. So I suppose my outlook can be stated like this: -> […]...

WANTED: Home-based traders for new ‘4th-dimension’ trading strategy

WANTED: Home-based traders for new ‘4th-dimension’ trading strategy

Back in October I was playing around on a popular charting platform. The software itself is nothing unusual. Anyone can get their hands on it immediately on the internet. In fact, it’s probably the kind of thing you’re using right now to follow the markets. But something I stumbled upon stopped me dead… I found […]...

The 5 essentials of ‘unshakable’ trading

The 5 essentials of ‘unshakable’ trading

Happy New Year! I hope you and your family had a happy festive period and didn’t overindulge too much. Anyway, the markets are back in action, and the brokers returned to full and normal hours this week, so it’s back to business… Now, the big thing at this time of year (of course!) is the dreaded […]...

This will NOT suit show-offs

This will NOT suit show-offs

Here’s a question I get asked on a regular basis: How can I fit trading in around my job and still make consistent profits without having to check charts during the day? The good news is there are loads of ways! The trick of course is finding the way that has ‘your name’ on it […]...

How to upgrade the 5 ‘building blocks’ of any trading system

How to upgrade the 5 ‘building blocks’ of any trading system

Trading strategies are polarising objects… An approach that suits one person down to the ground might totally torment and irritate another because it doesn’t fit their own unique trading ‘personality’. But when you can chop bits from one strategy and slot them straight into another there’s no need to suffer any longer. In fact, there’s […]...

3 ways to avoid weekend market carnage

3 ways to avoid weekend market carnage

A question comes in from a worried Trader’s Nest reader… “I’ve got this trade that’s well in profit. My usual strategy is to trail the stop loss so I can lock in some of the profits and then give the trade a chance to turn into a long-term one. But what do you think I […]...

3 ways to use Moving Average Envelopes

3 ways to use Moving Average Envelopes

The trend is your friend (well, until it bends at the end). Cheeky, I know! But I’m only poking a bit of light-hearted fun here. 9.76 times out of 10 following the trend is EXACTLY what you should do. But… isn’t it a thrill when you DO nail a reversal point in the market – […]...

5 signs you are a ‘punter’ not a trader

5 signs you are a ‘punter’ not a trader

You know, there’s a fine line between trading and gambling. One way has you flying by the seat of your pants. The other has you operating with cool calculated professionalism. But to all intents and purposes the exact same actions are taken either way. So how on earth do you separate true trading from gambling? […]...

The deadly dangers of ‘Pip-thinking’

The deadly dangers of ‘Pip-thinking’

Sometimes, traders come to me with a glaring gap in their strategy. One common oversight can be the thing getting in the way of good results. It’s this… Many traders think of their trade results ONLY in terms of pips won or lost. Nothing wrong with that you might think. But the pips mean absolutely […]...

What to do when greed and fear start ruining your trades

What to do when greed and fear start ruining your trades

Do you ever feel you’re not quite in control of your trading actions? Is greed and fear driving your decisions? Let me tell you exactly what signs to look for, and then what to do about it if you do self-diagnose one of these nasty afflictions. 5 ways reckless trading ruins your chance of success […]...

7 trading demons that will steal your soul

7 trading demons that will steal your soul

It’s Halloween tomorrow. So we’re off on a journey into the ‘dark underworld’ of trading… There are many ways to complicate the trading process and mess things up. And I wanted to get them all laid out in the open today. To beat these trading demons means recognising them, and then getting to know their […]...