Letting Winning Trades Run – Trading Your Plan It’s one thing planning on having a specific target or risk reward prior to entering a trade, but another thing altogether to see this trade idea through to fruition. The problem is that our thought process can be distorted after entering a trade as we become more…
New Year’s Resolutions – How to Achieve Your Trading Goals We are fast approaching the New Year, the traditional time for reflection and goal setting, as we look to improve our health, wealth and happiness. With the best intentions in the world, the unfortunate truth is that most people just don’t manage to stick with…
Top Down – Multiple Timeframe Trading Analysis This discretionary price action article will run through a simple top down analysis scenario. The charts below show a theoretical trade setup using the daily chart to gain a bias and the lower timeframe to trigger a signal entry. The idea behind this kind of granular trading analysis…
Contrarian Trading Approaches - Fading The Breakout This is the first in a series of posts giving an overview of various contrarian price action trading strategy examples; some of the examples we cover show scenarios where traders may look to fade the obvious move. The contrarian forex trader may for example be looking to buy a declining…
Risk Reward Ratio And Expectancy In this short post we will look at the subject of risk reward ratio and expectancy. We discuss how - contrary to popular belief - the key to success is not just anticipating the next directional move from the market. How many times have you had a series of winning trades only to see the…
Forex Price Action Trading What Is Forex ‘Price Action’ And Why Do Discretionary Traders Follow It? The two primary approaches used to analyse the forex market are fundamental and technical analysis. Price action is associated with technical analysis trading but without the use of “lagging indicators” as a primary decision making tool. Indicators are essentially…
Jack Schwager - The Confusion Between Volatility And Risk This guest post was written by Jack Schwager. Jack is the author of the Market Wizard Series (the latest volume, Hedge Fund Market Wizards released in May 2012) and Market Sense and Nonsense just published (Nov 2012). This article is based on one of the themes discussed in Market Sense and…
Trading The Daily Charts (Forex FX 4X, Trading Articles) Many traders have aspirations to trade the markets on a full time basis, but the day-to-day reality of this may not be aligned with their initial expectations. Lets face it, everybody wants to get rich quickly but intra-day trading often comes with the following negative associations: Trading…
This article on Contrarian Trading was written by a guy called Mike, who was mentoring the original poster on Forex Factory. I thought it may be of benefit for readers of the blog. Thanks to the OP for allowing me to share this. Enjoy… Why Contrarian Trading Works The basic idea behind contrarian trading is…
Trading Lessons From Paul Tudor Jones This post features an interesting video from Informed Trades. The short video summarises some of the key lessons traders can learn from Paul Tudor Jones. Paul Tudor Jones is the legendary hedge fund manager and billionaire as featured in the “Market Wizards” book from Jack D. Schwager. As of March 2011, the net worth…
Enhancing Trading Performance Through Meditation (Forex FX 4X Articles, Trading Mind, Psychology and Discipline) Stress and mental pressures are an every day reality of trading the forex market. Our ability to deal with these challenging emotions can have an impact on our bottom line. How do you deal with losing trades? How do you feel…
Trading Quotes Well thought out quotes can inspire and educate. These short inspirational quotes are some of our favourites. Quotations like these can provide inspiration through words of wisdom from others who may have experience in areas we don’t. You may want to spend some time compiling a list of trading quotes for yourself, or…
Big Round Numbers – Trading Strategy Scenarios This article will look at the London open on Friday 21st September and how the EUR/USD was trading around the big round number 1.3000. The price action and order flow dynamics gave a few interesting setups which fit in with my favoured approach towards trading the markets. You…
Inside Day False Breakouts (Forex FX 4X, Trading Strategy Ideas, Price Action) This post will expand on our inside day tutorial with a look at the false breakout strategy. This is something you may want to test yourself and paper trade to see if it complements your existing approach. As ever, this is not a…
Range Breakout Trading Strategies Breakout trading systems are based on a premise that the break of the range favours a continuation scenario. Range breakout trading strategies are often used by market participants to try to get involved at the the start of (what they hope will be) significant price moves. Range breakouts often lead to…
Pin Bar Tutorial An underlying tenet of discretionary price action trading is that historical data can be utilised to help gain a directional bias for a given instrument or asset class. In fact proponents of this approach believe the interpretation of price movement remains roughly the same as long as a sufficiently liquid instrument is…
Forex Market Sentiment Technical analysis has become increasingly popular for aspiring traders. Ask any relatively new trader what a Fibonacci extension is and there is a pretty good chance you will get a reasonably accurate answer. However, one area that does not always receive the attention it deserves is market sentiment. Markets move continuously between…
The Correlation Between Crude Oil And The Canadian Dollar Traders are constantly on the look out for shifts in market sentiment; inter-market correlations are another area that require attention, especially when looking at exchange rates from commodity exporting countries. Currency rates and oil prices are both asset prices which typically respond almost instantly to developments in Financial…
Do You Have A “Black Swan Robust” Trading System Nassim Taleb – What Can Forex Traders Learn From The Black Swan” and Fooled by Randomness? Are you familiar with Nassim Nicholas Taleb and his published work? Taleb has pretty much seen it all as a hedge fund manager, a Wall Street trader and writer of two books…
Forex Confluence Trading Example - AUDUSD Setup This post will run over the AUD/USD price action from today (31/7/2012) with a particular focus on a high probability trade setup that presented itself. We have published numerous analysis posts on the merits of confluence when trading the forex market and this was an excellent example. Many…
