Trading Process and Strategy

Fast Trend Shallow Pullback

Expectations should change with a change in environment. In a slow, wide-swinging trend, your better off waiting for a deep pullback. Don't be too quick to enter. But in a fast trend, if you hesitate you may just miss the entry. Here's two fast-trend shallow pullback entry examples. There's no waiting for a 38.2% retracement…

Trading Process and Strategy

When to Doubt a Pullback

I find the "grey areas" on a chart fascinating; the areas where our bias or premise start to show signs of breaking down and our decisions are clouded by the uncertainty that prevails at the hard right edge of our screen. This is where real learning happens! Where your knowledge, skills and attitude are pushed…

Trading Process and Strategy

Advanced Trade Management Options

Active Trade Management for most people simply involves trailing of the stop loss order, first to breakeven and then behind significant price features as the market moves on its path towards the target. However there are other options available for those who wish to explore further. It can also involve scaling in and out of…

Trading Process and Strategy

Defining the Market Environment

Have you considered how you should classify the market environment? If not, it's well worth doing so. The nature of the current market environment will determine the game plan that you bring to your trading session. There are numerous ways to classify it. Trending vs Ranging!  Accumulation, Mark-Up, Distribution, Mark-Down! Trending Volatile, Trending Non-Volatile, Ranging…

Trading Process and Strategy

Is Forex a Casino?

EMAIL RECEIVED AT YTC (Subject: Is Forex a (f…ing) Casino?) Hi Lance, As I said in the subject of my e-mail, did you ever have the feeling that all this trading business is only a f… casino? Time and time again I lose all my money in these damned markets. I get only a few…

Trading Process and Strategy

Climactic Break Above Grind

Grind: Low volatility Significant candle overlap Weak price extensions Pullbacks that just refuse to break lower And it just goes on and on, well beyond when you expect it to stop. Unless you're comfortable scalping within such a low-volatility environment, your best game plan is often to just stand aside until signs of failure. Of…