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My top five trading tips
The popularity of financial spread betting is growing
exponentially. I once heard a trader state that trading was simple,
but it wasn’t easy. I agree with that, so with this statement in
mind I have compiled a handful of tips to get you started on your
trading journey. Read more...
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What do you need to get
started in trading
I once read about a conversation between a top trader and a trading
psychologist. The psychologist asked the trader what he saw when he
was looking at a chart. The trader answered that he was dissecting
the chart bit by bit, ascertaining what the market participants
were thinking at each turn in the market, and then established
where he would buy or sell short the market himself. Read more...
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Planning for
profits
Traders will forever debate the merits of mechanical trading vs.
discretionary trading. One is a strategy which employs an entry and
exit strategy, based on a quantitative analysis, while a
discretionary strategy is essentially the opinion of the trader in
question. Read more...
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Fear and greed
In almost every speculative market there is a debate raging. Can
traders make money from technical analysis? Can they make money
from fundamental analysis? Read
more...
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Trading or investing
What is the difference between trading and investing? Most people
would associate investing with buying and holding shares. An
investment is a long-term consideration while a trade is
short-term proposition, I can almost hear the text books say.
However, sometimes traders hold positions for weeks and even
months. That is hardly a short-term trade? Read more...
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Do you have a trading plan?
The odds say you do not. Don’t feel bad about it, but do something
about it. If you are pursuing profits with consistent returns, you
need a written plan that you can execute with confidence and
without hesitation. “If you fail to plan – you plan to fail”.
A trading plan consists of several things. We can break it down
into 3 components. Read more...
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Where am I going wrong?
Have you ever placed a trade at an area of support, only to see
your position move into negative very fast? You remember how you
felt? The feeling of despair? The prickling sensation on your
forehead. You go over and over the trade in your head, examining
then re-examining why you are feeling like this but you just cannot
come up with an answer. Read
more...
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Behavior modification
A young boy, Rudy, and his elder brother would play outside after
school. The elder brother would ask Rudy to throw small rocks at
him and try his best to hit him. Of course, Rudy thought his
brother was crazy, but no matter how hard he tried, he just could
not hit him. His brother would dodge left and right, duck up and
down. He was simply too quick. Rudy's elder brother would later
become one of the world's greatest boxers - Muhammad Ali. Read more...
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Patience is a virtue
The goal of a professional archer is to hit the centre of the
target with each arrow he shoots with. His focus is on the red
circle which is the exact middle of the board. He has trained
himself to only focus on that location. Anything outside of that
circle is not in his vision at this precise moment. Read more...
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Entry and exit strategies
Why did you enter a position on your last trade? Let’s take an
example from my trading this morning: The Germany 30 was
according to my analysis beginning a downtrend and I wanted to sell
short on any retracements. The market retraced 61.8% of the
move from the previous day, and I placed a “sell short" position.
Read more...
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