A legitimate question asked by the newbie is, should you use profit targets or trailing stops when exiting a trade? In this post, I’ll give my unashamedly biased opinion in favour of trailing stops and why that is. I’m no fan of the ‘profit target’ but not without good reason. […]
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How To Position Size
There are only three directions for market prices to move; up, down or sideways. And because of this, any layperson can from time to time make a correct market call. But to make money consistently you need skills in market timing, handling emotions and money management. Knowing how to position […]
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Introduction To Money Management In Trading
Ask three different traders what’s the most important thing in trading, and it’s likely you’ll get three different answers. One will say, ‘market timing’. Another, ‘nope it’s trading psychology’. The third, ‘nah, money management. That’s the key’ Actually, they’re all wrong. Each is equally important. Because, like any three-legged stool, […]
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When You Should Cancel An Entry Order
Short-term trading techniques differ from both day-trading and trend-trading. One of those differences is knowing when to cancel an entry order. I want to discuss this in more depth; it seems academic, but it’s an important point if you want superior trading results. If you read here, or maybe here, […]
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