How is it that Goldman Sachs can buy and Morgan Stanley can sell and both make money? It is because they know how to manage their trades…they have learned how to trade! They use complex strategies that involve hedging and scaling into and out of trades, but the message here is clear. Trade management is […]
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My setup for day trading the 5 min Emini has 20 bar exponential moving average. In addition to the 5 minute 20 bar EMA, I also have both the 15 and 60 minute 20 bar EMAs written in a way that allows me to plot them on the 5 minute chart (I have the Trade […]
Beginners should only enter with stop orders. He often waits for many bars before he finally finds a trade that he is confident will make him money. He very often then watches the market reverse quickly and stop him out, and it occurs to him that he would have made a profit had he done the […]
Some traders are constantly afraid of entering because they are waiting for the perfect trade. They are looking for a high probability of making a lot of money while risking very little. They want trades that look like the ones they see on all of those websites that make trading sound so easy…simply learn a dozen candle […]
The “open” may allow traders to make a lot of money from the first bar, which happens about once a week, or only after a couple of hours of going sideways. Most traders concentrate hard during the first couple of hours because it is the most likely time that a swing setup will form. If […]
Listen carefully to traders on television who are making money every day because they can help you learn how to trade. Do you ever hear them say that they are shorting because there is a Harami or a Dark Cloud Cover? NO!! They rarely mention any technical studies, including oscillators and bands. You constantly hear […]
All traders want to learn how to make money, and one important fact they need to understand is that every market is always in trend channels. As soon as you see a line, you have to conclude that there is a channel, even if you do not see the other line. I am constantly drawing […]
Markets are created by institutions so that they can quickly buy or sell when they want at a fair price and with a tight spread. Their goal is the same as ours…they want to make money by trading. The market is always searching for a price that is fair for both sides, and that is […]
So, who uses fundamental information when trading? It only can benefit investors, who hold positions for months at a time. Although you often hear traders on television mention fundamentals when they place trades lasting for a few days, they do not realize that they erroneously believe that the fundamentals improve their profitability. The fundamentals do […]
Reductio ad absurdum “If I can make more money on the 5 minute than on the daily chart, I surely can make much more on the 1 minute chart.” This ignores the practical limitations of the human brain… we are not computers, and we have real time limits for our ability to process information and […]