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Trading General

Trading General

Joe Ross
Aug
21

Volatility

Volatility
Historical Volatility Also referred to as statistical volatility. Historical volatility gauges the fluctuations of underlying securities by measuring price changes over predetermined periods of time. This calculation may be based on intraday changes but most often measures movements based on the change from one closing price to the next. Not everyone agrees on how to calculate historical volatilit...
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Joe Ross
Aug
13

Bullish Divergence

Bullish Divergence
Mr. Ross can you tell me exactly what is meant by "Bullish Divergence?" It's really very simple. A Bullish Divergence occurs when prices fall to a new low while a technical indicator fails to reach a new low. This situation demonstrates that bears are losing power, and that bulls are ready to control the market again—often, but not always, a bullish divergence marks the end of a downtrend. The tec...
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Guest — Earl Stallmann
Joe's bio says he's been mentoring for 27 years. I think it's at least 28. There were seven of us in a three day educational ses... Read More
Friday, 14 August 2020 12:24
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Joe Ross
Aug
05

Dollar Value on "Success"

Dollar Value on "Success"
One of the great lies that all traders tell themselves, is that we need to make a lot of money in order to consider ourselves successful. That there's a dollar value on "success." That is absolutely false. The goal isn't to double your account or trade for a living. The goal is to be profitable. At Trading Educators, we hear from many successful traders — traders we ourselves helped in their train...
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Joe Ross
Jul
30

Indicators

Indicators
Hey Joe! Which indicators work for real trading tactics? Have you ever noticed that my entries and exits are based on price levels—actual price bars? I use actual price data to determine most of my entries and exits. There is no better technical indicator than price itself. Think about it for a minute. You are making a mistake if you use indicators for entries and exits because every indicator is ...
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Joe Ross
Jul
23

Information Overload

Information Overload
Have you ever felt as if the more you know, the less you know, and the more you become confused? Why is this? People have the tendency to believe that the accuracy of their forecasts increases with more information. This is the illusion of knowledge - that more information increases your knowledge about something and improves your decisions. However, this is not always the case - increased levels ...
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Guest — David Autrey
Please allow me to subscribe to the blog post. Thank you, Dave
Saturday, 08 August 2020 08:19
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Joe Ross
Jul
15

Day Trading or Swing Trading?

Day Trading or Swing Trading?
Hey Joe! Which is more profitable day trading or swing trading? Wow! What a loaded question. Many traders who are just starting out, want to know which type of trading they should focus on. Some traders prefer day trading while other traders prefer swing trading, and quite often traders like to mix it up a bit and trade both styles simultaneously. The most important thing to keep in mind before ma...
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Joe Ross
Jul
09

Getting Rid of Ego

Getting Rid of Ego
Have you ever wondered how to get your ego out of your trading? Have you wanted to be market-centered, but find yourself consistently being self-centered? One thing I know for sure: your self-concept has to be separate from your trading. You began as an individual long before you ever thought of trading. And you exist as an individual beyond the time you spend trading. When personal self-worth get...
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Joe Ross
Jul
02

ATR Indicator

ATR Indicator
How does the ATR indicator work? The ATR indicator stands for Average True Range, it was one of the handful of indicators that were developed by J. Welles Wilder, and featured in his 1978 book, New Concepts in Technical Trading Systems. Although the book was written and published before the computer age, surprisingly it has withstood the test of time and several indicators that were featured in th...
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Joe Ross
Jun
24

The Close

The Close
Why is it with futures that we see the Close at one price, and then a half-hour later it has moved to another price? Why isn't the Close the same as "Last," and what is the "Consolidated Price?" "Last" is the last price at which an underlying stock or futures is traded. It could also be the "Close." The Close that you see within minutes or seconds after trading has ceased may not be the final pric...
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Guest — CES
Thanks Joe FOR addressing a vexing TOPIC that is rarely explained. I’ve have seen CME documentation that futures settlement ca... Read More
Thursday, 09 July 2020 11:23
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Joe Ross
Jun
18

Can seasonal transitions help a commodity trader?

Can seasonal transitions help a commodity trader?
Yes! Seasonal transitions create workable Spread strategies. I'll let my Andy Jordan, an expert in seasonal fundamentals, answer. Andy! You have the floor: "Change gives birth to risk – but also creates opportunity. Seasonal transitions create workable spread strategies because markets have to struggle to maintain equilibrium between supply and demand as conditions undergo dynamic change through t...
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Marco Mayer
Jun
11

5 Tips on How to Deal with Drawdowns

5 Tips on How to Deal with Drawdowns
After the recent harsh correction in the stock markets and cryptocurrencies, many traders and especially investors currently find their accounts in a not so nice drawdown. So I thought this might be a good time to give some advice on how to deal with such drawdowns. What's a drawdown? Here's a quick explanation: You buy one stock of a company at $100 and after a month it's trading at $120. You're ...
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Joe Ross
Jun
11

Break Out from a Trading Range

Break Out from a Trading Range
Here are two ways to know when prices are getting ready to break out from a trading range.  When prices are in a trading range, count the number of closes above or below a specific price near the vertical mid-level of the trading range. If 70% of the closes are above the mid-level price, and the market cannot rally and close above reaction highs, a severe correction may be imminent. If a mark...
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Guest — susan patton
Very INFORMATIVE. thank you
Saturday, 27 June 2020 15:03
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Joe Ross
Jun
03

Trading Psychology

Trading Psychology
Many traders are aware that trading psychology is the most crucial piece of the puzzle in learning how to become a profitable trader. However, most traders avoid taking the steps that are necessary to correct or improve their response to market behavior and end up paying a hefty price in the end. There are some specific steps you can take to improve your reaction to market action and strengthen yo...
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Joe Ross
May
28

Reader Question

Reader Question
A reader asks: "Hey Joe! I'm pretty new at this. Can you tell me the rules for buy and sell stops?" When the market trades above a buy stop price order, it becomes a market order. The first down tick after the market order price is activated determines the highest price at which the buy stop order may be filled. The rule to remember placing stops is this, "Buy above and sell below." Buy stops are ...
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Guest — J
This is good to know.
Friday, 29 May 2020 07:07
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Andy Jordan
May
21

Your Worst Enemy

Your Worst Enemy
In general, we are our own worst enemy when it comes to trading. There are many ways to sabotage yourself as a trader. Not creating a trading plan, or creating one and then not following it are two of the most common. Some ways to self-defeat are deep seated; they lurk at the back of your mind and work behind the scenes. These are often self-image problems that can rise from as far back as early c...
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Joe Ross
May
21

Fear

Fear
A reader asks: How do you handle fear? I seem to have plenty of it. Let's get one thing straight. Fear, for the majority of traders, is a very real thing. You have it, I have it. Others have it as well. What is it that traders fear? The top three, in order, are: Fear of missing a trade. Fear of losing money. Fear of being wrong and losing face. In order to become a professional trader, you must le...
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Joe Ross
May
14

I was asked the following question:

I was asked the following question:
"Do you think that what this guy wrote below is true? 'You can get ahead of yourself in this game, and it's dangerous to get cocky. But I've had times where for an hour I could do no wrong. I'm trading and 99 percent of the trades are good, they're all for 30 or 50 contracts, and I'll make 10 grand. Then I'll overextend myself and maybe buy 10 or 15 contracts, fighting the trend just because I kno...
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Joe Ross
May
07

Support and Resistance

Support and Resistance
One short time ago I received a couple of emails questioning whether or not I believe in support and resistance. In fact, one subscriber said if I didn't believe in support and resistance, then I couldn't possibly believe in trend! Why? Because in all cases the situation ends. Here's what I believe: The trend is your friend until the end. The swing is the thing until it goes "ding." What is suppor...
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Joe Ross
Apr
30

Money Supply

Money Supply
How does money supply affect trading in the markets? There are two important components of federal market activity which affect long- term economic activity and stock and commodity values; these are interest rates and money supply. A contracting money supply was one of the factors that caused the Great Depression of the 1930's. In the early 1980's most traders focused almost totally on the money s...
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Marco Mayer
Apr
30

How much to risk per trade

How much to risk per trade
One of the questions every trader has to think about at some point is, how much of my account should I risk per trade? A percentage? If so, what percentage? I'd love to have the right answer in my pocket for you, like "exactly 1.25% per trade/market and no more than 5% at the same time," but unfortunately, I don't. I know you don't want to waste too much time with this boring aspect of tradin...
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Derivative transactions, including futures, are complex and carry a high degree of risk. They are intended for sophisticated investors and are not suitable for everyone. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results, and all of which can adversely affect actual trading results. For more information, see the Risk Disclosure Statement for Futures and Options.