When developing logic for trading system, most of the futures traders would quickly agree that there are inherent differences between long and short trading. Few differences that I observed over years of trading are listed below.
1. Many technicians have observed that uptrend is generally longer in duration than a downtrend a typical uptrend seems to [...]
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ABOUT TRADING SYSTEMS
Trading tips
There is no trader who can sit down in front of a screen each morning without a trading plan and tip to look at charts for trading, and make money constantly. Traders who always perform well have a trading plan. Make sure that your trade plan has definite rules.
Below are few trading tips that can [...]
Stress due to trade exits
Frequent exits due to stress occur when traders stop out at a stop loss level, close the trade into high volume spikes, or attain predefined targets. All trades should have a stop loss in place. Some traders hold a mental stop while others place physical stops. Traders stay with the market as long as a [...]
Ways to Trading Performance
The two key essentials to achieving trading success are having a trading plan and a positive expectation and consistency. Many traders who do not have the first essential in place are the main cause of their lack of trading success. Traders who are positive in expectation system find their execution consistent and challenging.
A trader is [...]
Time Based Trading Part 2
All traders are on borrowed time not knowing that there is a disaster waiting to happen. Unless a right step is taken to prevent the impending disaster, the situation will be a disaster. The primary goal of trading should be to diffuse the bomb before it explodes causing damages especially in a time based trading. [...]
Back testing and Data Mining
Backtesting and Data Mining are techniques that are influential and worthy if we use them in the approved manner, however traders often exploit them. Therefore, we’ll also explore two common pitfalls of these techniques, known as the multiple hypothesis problem and overfitting and how to overcome these pitfalls.
Backtesting is just the procedure of using chronological [...]
Trading needs patience
SUCCESS is in great demand for all traders who take a first step in their career. Most traders feel unsure and uneasy initially. They expect success overnight failing to understand that trading needs patience. Any beginning trader does not plan on failing. Many beginning traders never consider failure as one of the possible outcome of [...]
Technical Analysis: What you need to know before you start charting
Technical analysis is the study of price data and statistical indicators that are created by market movement. Market activity demonstrates the course of supply and demand. This supply and demand is an indication of ideas and opinions translated into human behavior and exclusively, herd mentality. Therefore, technical analysts would squabble, price patterns and indicator signals [...]
A Beginners Guide to Spread Betting
Financial Spread Betting means to put a ‘bet’ on a financial tool increasing or decreasing. Spread betting is becoming progressively more accepted with investors and traders. The process of opening a position is to place a spread bet. The distinction is that opening a spread bet position means that you trade or invest in any [...]
Destructive Patterns in Trading
Before we get into the topic of destructive trading, allow me to explain how psychologists assess whether or not a person has a problem with alcohol consumption. Here are ten questions that a professional might ask in order to assess any kind of substance use disorder, including alcohol abuse:
1) Have you found that your drinking [...]
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