From time to time I get asked how I add to positions. That is, entering a new trade while the prior trade is still open. So I thought it might be a good idea to outline my response here. Then I can just link straight to the article in future. (Time management WINNER!) The…
We have been blessed with some absolutely amazing markets lately. Incredible daily ranges. Incredible opportunity. And incredible risk, if not played wisely. So while it's tempting to use today's article as an ego-boosting review of a couple of winning trades, that's not really what motivates me with my YTC writing. I'm more concerned about…
I make it a practice to never recommend any particular market as being suitable for your trading. It's none of my business what you choose to trade. I don't offer financial advise and to do so would be completely irresponsible as I have no insight into your individual needs or circumstances. (For more, see…
Lesson 1: When two trade ideas fail to work, consider a break. When three trade ideas fail to work, force a break. Lesson 2: When the pullback is deeper and stronger than expected, let it roll over. Get in on the other side. Lesson 3: An exit is not necessarily final. Remain focused and…
I will NEVER take a trade without having pre-accepted the potential for trade loss. Because the fact is that MANY will lose. Pre-acceptance of trade risk means that I am comfortable with taking the loss and will do so immediately without hesitation. Pre-acceptance of trade risk means that I'm not overly concerned with the monetary…
I seem to average an order entry error maybe once every two months. That's not too bad considering entry is via a single click. But it's something I will continue to work at improving. In the meantime, it's an opportunity to again present my ideas on how to best manage those times when you…
The quicker you can recognise that you're wrong… the quicker you can become right. Here is a useful rule: Two Attempts – Then Reassess! After two attempts at a trade idea, if it hasn’t worked, it’s clear that something is not right. You’re not in sync with the market. Either: You have misread the…
Before you can consistently win, you're going to have to learn how to lose really well. That is… Completely accepting losses as a normal part of the game. And containing the damage to pre-accepted limits. This has been one of my favourite themes of the last year or so. Let's go over it…
I had an interesting email exchange with a trader a couple of weeks ago, who is struggling with occasional massive losses. I've had the opportunity to speak to a LOT of traders over the last 8 years of writing these articles. You'd be surprised at how common this problem is. We discussed several options…
Let's examine the opening hour and a half of the emini Dow from Tuesday's session. As seen in the charts below, the session commenced with a sequence of trades where I was out of sync with the bias of the market. And then another when I was completely in tune with the market. Ok,…
