Understanding Leverage
This article originally appeared in the September 21, 2006 edition of Tradersmedia’s TraderSavvy Newsletter as “My Super Secret Trading Technique - Part I.”
Throughout my professional career, I have taught trading seminars and webinars, written newsletters and advisories, and generally spoken to a lot of people about trading. The most common topics people want to discuss are what indicators do I use and how do I time an entry. While these are important things to consider, they are not actually the end all and be all of trading. Probably the least common question is the question that I feel is most important – what about money management and risk?
The Holy Grail of Trading
This article originally appeared in FutureSource FastBreak October 20, 2006
You may view it here.
Many traders spend a great deal of time trying to find trading’s “Holy Grail.” In this search, they move from one system to another, trying to find that one magic formula. Does the Holy Grail exist? There are a lot of frustrated traders that would tell you no. I, on the other hand, believe that it does exist. But I also believe that most traders seeking it are searching for it in the wrong place.
Too many traders, especially those lacking experience, focus on finding that one magic formula that will give them precise entry signals. What they fail to understand is that the trade entry is not as important as the exit. Here is an example that I have used in various seminars. We have two traders, one is short the market, and the other is long. They both offset the same day, same time, and same fill price. They both recorded a profit on their trade.
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