Reader Question: What Does “Good Risk Management” Mean?
[dc]T[/dc]his, my first reader question, comes from John in Seattle: I often see and hear people talking about good risk management being a good part of trading. What does this…
Some Important Lessons I’ve Learned
I thought I'd share a few thoughts today, kind of a "what I've learned in the past 10 years" post. This list was refined and crystallized by the process of…
You Get Paid to Hold Overnight
A look at one reason why daytraders may struggle...
Managing Gap Openings
Gap openings can present both danger and opportunity to swing traders. You need a plan for handling these volatile and potentially dangerous events.
Small Stops, Big Risks?
[dc]S[/dc]ome of the most persistent myths about trading revolve around the idea of low-risk trades. You will often hear traders say that they took a trade because the risk was…
Careful With Correlations
A casual understanding of mathematical concepts can often lead to incorrect conclusions. This post shows that the direction of markets on charts does not necessarily reveal anything about the correlation between those two markets.
Know Your Risk
[dc]"F[/dc]irst, know your risk." Every trader has heard this, and for good reason: It truly is one of the most important elements of successful trading. Amateur traders get into a…