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 […]

Continue Reading

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 […]

Continue Reading

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 […]

Continue Reading

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 […]

Continue Reading

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 […]

Continue Reading

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 […]

Continue Reading

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,” […]

Continue Reading

We recently discussed some of the technical indicators that many professional traders harness to determine their opinion of a stock’s valuation and decide when to buy and sell. That article covered some pretty complex stuff, including the Relative Strength Indicator (RSI), the stochastic oscillator, and the Commodity Channel Index (CCI). Those techniques, although somewhat arcane, […]

Continue Reading

Editor’s note: This is the final part 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. Part 2 explains how turtle traders follow the trend. […]

Continue Reading

Risk control. It may not be the most glamorous aspect of a trading opportunity, but some traders say it’s among the most critical elements. In a recent article, fund manager and Market Wizards author Jack Schwager said the most important investment advice he ever received was this: “Know where you will get out before you […]

Continue Reading