The price breaks out in the direction you expect, and you jump aboard with a trade. Moments later the breakout has failed and you find yourself in a trade that is rapidly accelerating in the opposite direction. Welcome to bull traps and bear traps; terms used to describe an event where traders are trapped into […]
Even after a decade of a trading, I still do things some days that go against my trading plan and strategies. Sometime I take extra trades out of boredom, other times I skip trades, and other times I take all the right trades but fail to manage them properly. Regardless of what the problem is, […]
When monitoring price action, and using it to find and filter trades, understanding magnitude and velocity will likely have a great impact on your trading success (or failure if you don’t understand these concepts). These terms are simply used to refer to how far the price has run in a particular direction–magnitude–and how fast it […]
There is a subtle distinction between successful and unsuccessful traders. Successful traders don’t operate out of a fear of losing, while amateurs do. Do you want to lose? Likely not, but this is the wrong mind frame for trading in the first place. Trading not to lose means you haven’t fully accepted the risk of […]
As primarily a trend trader, my goal is to trade in the direction of the trend, by entering on pullbacks and then taking my profit on the next trending wave. The basic envelope strategy discussed extensively in my day trade articles attempts to capture such moves. The problem is that unless you are very good […]
This article was originally contributed by the archived community member Mifune. We no longer maintain contact details for the original author. The content has been fact-checked and updated for accuracy by our editorial team. I am a college student and started trading seriously back in 2010, so what I would like to do is put […]
Only one trade fulfilled my trade requirements during the late London and early US session, yet the trade is worth discussing since it encompasses many of the concepts I have discussed in other articles. For about an hour before the US session began the EUR/USD was moving predominantly sideways. Not price action I am interested […]
This article was originally contributed by the archived community member Mifune. We no longer maintain contact details for the original author. The content has been fact-checked and updated for accuracy by our editorial team. So while all the strategy posts, and articles on money management, trading psychology, brokers, trading software options, indicators, and so forth […]
This article was originally contributed by the archived community member Mifune. We no longer maintain contact details for the original author. The content has been fact-checked and updated for accuracy by our editorial team. I wasn’t able to trade the final two days of last week (which probably wasn’t a bad thing because the market […]
One of the greatest problems most traders face can be summarized as “Not following their trading plan or strategy.” As humans beings we have several tendencies which cause this. One of the main culprits is that once we have a plan that works (or at least was shown to work in the past), we try […]