facebook  youtube  blogger

Trading Educators Blog

#1 Trading Blog Site
Dec
08

Looking at how the money supply affects 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 supply figures, which would cause cash bonds and T-Bil...

Continue reading
  2285 Hits
Dec
05

E-Mini Russel 2000 (TF) Multiplier Change

Something you should be aware of if you're trading the TF: Starting today (December 5th) the E-Mini Russel 2000 (TF) has a tick value of USD 5.00 instead of USD 10.00 while the tick size stays the same. For more info see the ICE FAQ. Happy Trading! Marco

  2392 Hits
Dec
05

Simplicity of Trading

Trading requires that you take decisive action. Implementing a successful trading plan quite often requires that you make quick decisions when the right market conditions come into play. The more complicated you make your trading, the harder it becomes to make quick decisions. We all know it can be hard to make trading decisions when your money is on the line. Most of us have a natural desire to a...

Continue reading
  2716 Hits
Dec
02

"Once I’ve achieved success as a trader, then what? I’ve heard that after a while trading can become boring."

Question from a subscriber: "Once I’ve achieved success as a trader, then what? I’ve heard that after a while trading can become boring." I know you would all like to have that problem, but I can vouch for its being true. I always have to find new ways to trade or I do become bored. However, I have never run out of ways to trade that remain exciting, at least for a fairly long time. After the obje...

Continue reading
  2966 Hits
Nov
25

I Find Myself with an Attitude of Gratitude

Dear Friends, Whenever this time of year rolls around, I find myself with an attitude of gratitude. This week we celebrated Thanksgiving Day. Although "Thanksgiving" is not celebrated here in Uruguay, many living here celebrated at various places around the country. There were at least fifty people at the gathering my wife and I went to. Trading and markets have been a major part of my life for al...

Continue reading
  2098 Hits
Nov
17

Reaching Your Trading Goals

As a trader, it's essential that you set specific goals. Trading is chaotic enough without trying to achieve unstructured goals that are difficult to manage and reach. Making profitable investments requires you to prepare carefully. You have to develop hypotheses regarding current market conditions. You have to devise ways of identifying setups and determine how and when to enter and exit the trad...

Continue reading
  2608 Hits
Nov
17

Launching Ambush Signals

I’m happy to tell you that today a new AlgoStrats service was launched: Ambush Signals for Futures. To find out more have a look at the following video presentation: Happy Trading! Marco

  3084 Hits
Nov
10

Develop a Trading Plan

The main message I want traders to understand is how important the disciplined execution of a well thought out trading plan is in today's markets. Nobody knows for sure what a given market will do next. Having a plan of attack will allow you to successfully cope with the uncertainty that is an inherent part of trading. I think it makes good common sense to have a well thought out plan of attack fo...

Continue reading
  3366 Hits
Nov
07

As a Percent of Capital, Should I Go Big or Small?

Careful risk management is a key component you being able to trade at your best. Comfort level is really important when it comes to risk. You need to be comfortable in three areas: Emotional, Mental, and Financial. We could even add Physical to that list without having to make too great a stretch. If there is a real danger that you will lose large amounts of capital, or money that you just can'...

Continue reading
  2559 Hits
Nov
02

AlgoStrats:FX October Performance

It’s been three months since AlgoStrats:FX launched so I guess it’s time for a more detailed update on what happened so far. Here’s the up-to-date equity curve of the live trading account: The summary is that we had a tough start and two months of slow, steady drawdown until things turned around nicely in October. Nothing unusual, no problem but hey…couldn’t the markets have given us a slightly ni...

Continue reading
  3244 Hits
Oct
20

Waiting for Confirmation? Don’t Wait too Long!

A popular concept in the world of trading, especially among technical traders and chartists is to wait for confirmation before entering a trade. This means you have a Signal, for example a price action pattern and now you wait for the markets to confirm that pattern before you enter. The idea of course is to filter out bad trades this way and to gain confidence before entering the trade. But that ...

Continue reading
  2956 Hits
Oct
18

Is trading more of an art than a science?

I believe trading is far more an art than a science. For one thing, if trading were a science, then we should all be able to enter the same trade at the same time, and exit at the same time getting identical results. We all know that just isn’t so. Yet if trading were scientific, we should be able to get identical results doing the same thing. I believe such expectation describes the “scientific m...

Continue reading
  2285 Hits
Oct
18

New Video on Entry Signals

Just wanted to let you know that I uploaded a new video to YouTube a couple of days ago. This time it's about why Entry Signals are important and one way to test an Entry Signal isolated from Exit Signals. If you like the video or my videos in general, and would like to see more of these in the future - please go ahead and like it on YouTube, leave a comment, add it to your playlist and share it o...

Continue reading
  2542 Hits
Oct
13

Don't Let Your Emotions Influence Your Decisions in Trading

Trading is nothing more than a long, random statistical run. An experienced trader knows that even if he is in a losing streak right now, as long as he sticks to his already approved trading plan, he will come out a winner in the long run. This is why becoming angry is pointless. In fact, it is worse than pointless, because heated emotions often lead to poor decisions in subsequent trades. In such...

Continue reading
  2607 Hits
Oct
10

Stressful Times

We are living in stressful times. However, In times of greatest economic stress, the worst thing you can do as a trader or investor is to panic. Reactions to situations that are born of fear are rarely wise or helpful. Perhaps you didn't sell before everyone else began to, and the market is in a slump. Now you’re facing a huge loss, all in one day. Your first thought may be to call your ...

Continue reading
  2384 Hits
Oct
07

In and around Uruguay

Since I began trading for Instant Income, I have a lot of time to enjoy the tiny country of Uruguay. There’s an old fort on high hill overlooking the estuary upon which Montevideo is situated. It is the widest estuary in the world, where the Rio de la Plata meets the Atlantic Ocean.  The Río de la Plata (Spanish: "Silver River") — which is often referred to in English-speaking count...

Continue reading
  2043 Hits
Oct
06

A typical Traders Notebook Outright Swing Trade

Today I want to show you a trade we had the other day with our new service. As you can see below, we were looking for a few entries in several markets. We were filled in the long Soybean Meal trade at 301.5 with an initial stop at 299.0 (the risk was $250 per contract traded). During the overnight session the market moved a bit, but everything was very quiet. At the open of the day session the mar...

Continue reading
  2310 Hits
Oct
06

The Forex Trump Trade & Synthetic FX Pairs

One of the hottest topics right now is the ongoing US election and how it will affect the currency markets. If we take Trump by his words, there’s no surprise two currencies should definitely be affected strongly by a winning Trump, the Mexican Peso (MXN due to his plan to build a wall between the US an Mexico) and the Russian Ruble (RUB as Trump wants to get closer to Russia). Therefor the ultima...

Continue reading
  2422 Hits
Sep
29

Why Pips Don’t Matter!

On a regular basis I get questions regarding Forex Trading in general or AlgoStrats:FX like: - How many Pips do you make per month? - How many Pips does a good trader make per month? - Does your Strategy make 100 Pips a week? Additionally to that, there’s advertisements all around that promise traders 1000 pips a month or performance reports that look like this: This month trades: 27 Sep: GBP/NZD ...

Continue reading
  2997 Hits
Sep
28

Five Basic Steps To Becoming A Successful Trader

1. Focus on trading vehicles, strategies, and time horizons that suit your personality 2. Identify non-random price behavior 3. Absolutely convince yourself that what you have found is statistically valid 4. Set up trading rules 5. Follow the rules 6. Don’t be afraid to abandon a rule that is no longer working.   In a nutshell, it all comes down to: Do your own thing (independence); And do th...

Continue reading
  2604 Hits

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.