Despite the interconnected world we live in today, trading can often be an isolating endeavor. A trader’s need to process the nonstop streams of data and information that the markets generate can create a type of inner echo chamber, in which thoughts and ideas lose objectivity and bad habits are reinforced. A simple way for […]

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What exactly is market volatility and why do some traders love it? The term volatility is used in a few different contexts by traders and the financial media. It seems the usage of the term increases when the broader market has been trending lower for a while and the financial media is flashing “Breaking News” […]

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As Benjamin Franklin wisely said in the 1700s, “By failing to prepare, you are preparing to fail.” Fast-forward to 2016 and apply this to your trading or investing approach. How much have you prepared? Any small business owner knows a business plan is essential. No bank would ever give you a loan without a business […]

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For the average retail trader, learning to scale up your position size can be a nerve-wracking process that can lead to unexpected and outsized losses. Fortunately, there are some guidelines that may help smooth your progress if you are considering scaling your position size. Don’t Increase Size Before It’s Time One mistake traders make when […]

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What do you remember about your first trade? If you’re like many traders and investors, you can recall quite a few details about that first plunge. Was it a retail investment such as a stock purchase, or were you working as a professional trader or investor? What made you decide to make that trade at […]

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It’s late December, and you’ve taken the last two weeks of the year off. The kids are visiting friends, your spouse is out doing some shopping, and you’re home all alone on a weekday. As an active retail trader, you decide to turn on your computer and take a look at the markets. With no […]

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It seems as if the holiday season just started, but once again, the new year is upon us. January 1 may be an arbitrary date for making resolutions or setting new goals, but because of the nature of the financial world, it makes sense at the start of a new year to evaluate your investing […]

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Editor’s note: The “On/Off Ramp” is a four-part guide to trade entry, exit, and what happens in between. Part 1 introduced the series and looked at the trade entry process, Part 2 looked at navigating the holding period, and Part 3 considered making adjustments to a position.   OK, you’ve set your objectives, initiated a […]

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The Chicago trading pits were a scrappy place in the 1980s: a sea of runners, clerks, brokers, and local traders sporting trading jackets of different colors. The decibel levels resounding from the pits sometimes offered clues about market dynamics. Legendary trading giants emerged from these pits, which often rewarded physical size and stamina, sure, but […]

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Editor’s note: This is part two of a three-part series on Richard Dennis and his “turtle traders,” and what traders can learn from the 1980s experiment. Part 1 tells the turtle traders’ story and offers a few tips on how to trade like a turtle. We’ve all heard the saying “the trend is your friend,” […]

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