Is ‘timing the trade‘ an important concept? Personally, I think it is. But then again I disagree with dollar cost averaging and stopless trading. But forgetting my own opinion on that, exactly when does one strike? When does one pull the trigger? When do you move without hesitation into a position? What does that moment feel like? How does one know the feeling? Excellent … [Read more...]
How The Correct Risk Reward Ratio Can Boost Your Profits
Ever wonder why a 1:3 Risk:Reward ratio is so prevalent as a rule of thumb? Ever since I’ve been reading about day trading, I’ve heard people say they ideally look for at least a 1:3 ratio, even they’ll settle for 1:2. In this article I’ll talk about how you can derive this value from the expectancy equation. Further, I’ll show how you can predict what kind of Risk:Reward ratio … [Read more...]
4 Steps For Back Testing To Jumpstart Your Day Trading
Back testing is a necessity for anyone day trading a strategy and is serious about this business. If you have experience in trading then you will have learnt a lot of stuff along the way but by planning and having confidence in your strategy can make a huge difference to your bottom line. It can be the difference between a healthy account and one that is often on margin … [Read more...]
Are You Over Trading?
As the name suggests, overtrading is simply a situation when you are day trading for an extended period of time. This is usually a case when a person makes profits on a continuous basis. It is in these times that you tend to get carried away. With a flush in success, you may not realize that you could lose everything, as a result of excitement which leads to overtrading. The … [Read more...]