Trading Educators Blog

In the trading business, it's prudent to take everything you hear with a grain of salt. Our field is full of false prophets who claim they can make you rich quickly and easily. Realistic skepticism is healthy. For example, there are many traders who made huge profits in the late 90s, and now claim that they can help you live comfortably by trading a $10,000 account. How do you do it? It's easy, th...

When you wish upon a star, what do you wish for? If you're like most people, financial freedom is one of the first things on your list. If you had a million dollars, think of what you could do. You wouldn't have to ever work again. You could just sit on the beach and relax. But if you're like most traders, you couldn't stay away from trading even if you had infinite wealth. What else could you wis...

Hi, Master I have a few questions that I don't quite understand, about Instant Income Guaranteed. Please explain to me, thanks. Q: "Only take the trades you can afford, keeping your put cover ratio at the advised strict minimum of 50% (80% preferably)"----Could you tell us how this data (50%-80%) is measured? A: If you have a $100,000 account you would use only $20,000 of it for trading IIG if you...

After months of trading in a slump, Jake tells his best friend, "I think I want to quit the trading business. Why am I doing it? There must be a better way to make a living." Have you ever felt like Jake? Trading can be stressful and demanding. It's understandable to feel like throwing in the towel at times. If you are ready to find a new job, or if you just don't seem to have the same passion for...

Q: Hello! I bought the Trading with More Special Set-Ups Webinar Recording. Do you think it's a good idea to trade on EURUSD, GBPUSD, USDJPY, AUDUSD, USDCAD, EURGBP on 1h chart with the rules given in the webinar? A: Yes, you can trade all Forex with the special setups. As a matter of fact, you can also trade futures, CFDs and stocks with these same rules. Q: Take Profits 1:1 or 2:1 - which will b...

Dear Traders,  After going through my email, I came across a personal message from Joe Ross to his students and wanted to share.  I did make a few changes to omit outdated information, but other than that, below are Joe's words.  Enjoy! ~ Martha Ross-Edmunds From: Joe Ross' Personal Letter - Trading EducatorsSubject: Personal Message from Joe Ross at Trading Educ...

Are traders naturally born to trade? Can anyone learn to trade? What is the ideal psychological profile of the winning trader? At Trading Educators, we have tried to find answers to these questions, but definitive answers are often elusive. We keep trying, though. We've surveyed traders and interviewed them. And we have tried to analyze the interviews made by others. Our conclusion: There doesn't ...

You must risk money to make money. It is sad, but true. You cannot possibly make profits in the markets unless you take some risk. Many people hate taking risks, especially with their money. However, risk is a part of everyday life. We take risks all the time, even when we complete the most mundane tasks, such as driving our children to school, or flying home to visit our family for holidays. We e...

As a beginning trader, Chuck had just put on his tenth trade. He was still new to trading, but he was optimistic that he would be successful. He wanted to succeed. He thought, "I want to prove that I'm a good trader. I hope I do well on this trade. The outcome is critical to the rest of my trading career." Chuck's thoughts and feelings are understandable. Whenever we start a major endeavor - start...

A bird flaps its wings. A storm strikes miles away. According to Chaos Theory, a seemingly irrelevant action can precipitate, and contribute to, a major event. The right set of factors comes together, and a major event takes place. It's easy to imagine an unlikely chain of events that may initiate a market move. A housewife attends to her crying child who has tripped over the newspaper, and in doi...

Sometimes I get some really strange questions in the mail. The one that follows is one of them. Although I try to be like "Rambo" when I trade, I haven't in actuality fully achieved "Rambo's" degree of "coolness." "Is it really true that you are able to stay calm and relaxed when you trade? Are you saying you have never cracked under pressure?" There have been times when I made mistakes under pres...

This is good advice outside of Trading as well. "Have you ever had a bad day and wanted to stand aside until the feeling passed? Sometimes it is a good idea. It may be necessary to take a break, relax, contemplate, and refocus on the task at hand. The winning trader trades freely and effortlessly and it is vital to trade with such a mindset. Traders are similar to star athletes who perform at thei...

Traders are always more concerned about protecting their initial capital, rather than gains beyond that amount. In fact, traders become careless with gains beyond the amount of their initial capitalization. For some strange reason, traders do not treat newly earned capital in the same way as initial capital. Of course, this is the height of foolishness. There is no difference between initial capit...

I am to some extent an intuitive trader. I suppose there are some who are much more intuitive than I am, and some who are less so. I'm convinced that most people who begin trading think of it in purely mathematical terms. If the ultimate multiple regression equation could be devised, one could simply put in the inputs and get the outputs. And the outputs could be used to forecast the markets. The ...

From a letter I received: ...I'm so frustrated. I have far too many losses. Now I have an anxiety attack every time I trade... Can you help? Losses and setbacks can be the rule rather than the exception when it comes to trading. Discovering reliable trading strategies is not so much the challenge as is learning what to do when things go badly. Learning a strategy is one thing. Learning how to mana...

Sometimes it pays to understand certain relationships. For some people it seems that understanding the relationships among interest rate bearing instruments is quite difficult For many traders, as well as for most of the general public, interest rates are intrinsically a subject of little excitement. How often do you find yourself lying awake at night worrying about interest rates? For most of us ...

Any pattern that remains accurate over long periods of time merits notice. If the current market conforms to that pattern, trading potential appears. Is a seasonal strategy with unblemished performance due to fail? Such a question subscribes to the random-walk theory of price movement. It certainly ignores the probability that a pattern might have a seasonal effect and be caused by a seasonal fund...

Achieving the level of being a self-confident trader is a worthwhile goal for anyone who hopes to reach for consistency in trading. A self-confident trader is decisive. Self-confident traders carefully plan a trade, patiently wait for the ideal market conditions, and execute the trade according to plan. As a self-confident trader, you know which trade has your name on it. You recognize the trades ...

A couple of things in life that I really don't look forward to are: 1. when they draw blood for my semi-annual health checkup and 2. when I have to go to the doctor. Yet, when I think about it, not going could be a lot worse than going. I don't know which I would dislike more, finding out I have too high a cholesterol reading or finding out that my blood sugar is too high. Hopefully, I'll never ha...

There have been plenty of times during my trading career that I had to come from behind to turn a sure-loser into a winning trade. Believe me, trading can be pretty scary at times. However, sometimes you simply have to eat the loss and accept a fall. It is at that time you find out whether or not you can make it as a trader. Despite my best efforts, I sometimes find it hard to pick myself up after...