Feb 182014
 
Types Of Trading Systems and Finding Yours

How many types of trading systems are there? Google this question and you will get several answers. Amazingly – there is no agreement on this question. It appears the answer, as in beauty, is in the eye of the beholder. This is because different authors put different trading systems into different size buckets. One author [...]

Feb 042014
 
The Success Rate Of A Trading Setup - The Hammer

The Description Of A Trading Setup The description of a trading setup can be as simple as “When a stock hits a new 52 Wk high, then…” – Or – As complex as one that requires four or more conditions to occur. ¬†A Trading Setup is a description of ALL¬†conditions necessary for an Entry Signal [...]

Mar 152013
 
Be Mentally Prepared - Trading Streaks Mess With Your Head

WHY DO I EMPHASIZE LOSSES IN A ROW AND NOT WINS? You will notice throughout this website I talk about losing streaks much more than winning streaks – but they both occur – so why emphasize the losing streaks? Well the common sense answer is that a string of losses can destroy your trading capital [...]

Mar 142013
 
The Most Important Element In Successful Trading

Position Sizing – The Perfect Name For Limiting Risk Position Sizing is THE MOST IMPORTANT ELEMENT IN SUCCESSFUL TRADING. Without it, you will blow up your trading account – guaranteed. You can be using a system with an 85% probability of success and without proper position sizing you can lose a major portion of your [...]

Mar 122013
 
The Coin Flip Test And Trade Probability

How Many Losing Trades Can I Get in a Row? First, the principle is the same, whether it’s a winning streak or a losing streak. Second, the answer is not what you think. I’m telling you right now – “This Is Really Important!”. This is a really important concept for you to understand before you [...]