It is often said that trading options is risky and fraught with unknown dangers, it’s difficult to learn and difficult to do. This isn’t always the case. As with any kind of trading it’s essential to have solid risk management skills. But provided the trader is trained correctly from the start and has a thorough understanding of options themselves as well as...
This is the third in a series of articles looking at some key tools and different practices that can improve your chart reading skills and your trading overall. Previously we talked about volume and its role in chart analysis. Still, there is one more feature of volume that can help traders to avoid critical mistakes as well as find good entries to their trades....
The bigger the timeframe is, the bigger the move it may produce. Therefore, it can be good practice to define the direction of the price and your trading based on where and how things develop on higher timeframes. Another reason to use timeframes with bigger resolutions for the confirmation of your decisions is that a trade setup on one particular timeframe is...
Was UBS a great buy last week, watch this and understand what really moves price, and its not the news, its the "Smart Money"!
Three factors for good trade management Knowing when to make your move is key to being a successful and profitable trader. Here are three things you need to handle to keep on track: 1. Know the probability of the trade Make sure you know whether your trade is low or high probability and whether it’s against the trend or with it. If a trader goes long in a...
It is essential to look at volume when analyzing the charts. Volume equates to activity: it is either the number of contracts placed to the market during the duration of the bar (in the case of exchange volume ) or the number of price changes during the duration of the bar (in the case of tick volume) It shows when and how the professionals (or as they are...
It’s important to do the right amount and kind of thinking when you’re trading: you don’t want to overwhelm yourself with information, you want to get into a flow state when you’re at your trading desk and you want to stay mindful about the kind of thoughts and feelings you’re having. In the legendary sports psychology book The Inner Game of Tennis Timothy...