What is Your Trading Edge?

Trading edge

If we ignore costs, the trading of Binary Options is basically a zero sum game. In other words, for every winner there is a loser of equivalent $ amount. But, there are costs in the form of what the broker earns. Therefore, it must be the case that the average trader is not breaking even. So, you must be achieving above average. A trading edge is a skill or insight or process that means you are better than the traders with whom you interact when you trade. If you have something that gives you an edge then you have a … Continue reading

Death by Piranha Bites

Death by Piranha Bites

  OK, so, the headline is a bit dramatic. But I’m not the first person to do that and, as you will see below, there is a relevant point behind it. There are two ways to blow up your account. You can lose a large portion through placing too much risk on each trade. Even if you have a trading plan with, let’s say, a 75% success rate – highly unlikely – it is still statistically likely that you will encounter times when you lose 5 trades in a row. If you put 10% of your fund at risk per … Continue reading

The No. 1 Thing to look For in a Chart

The No. 1 Thing to Look For in a Chart

What is the most important thing you should be looking for when you look at a chart of a market?  What is the No. 1 thing to look for in a chart? Did you say what the market is going to do next? If you did then you are wrong. Very wrong. That should be pretty obvious. A chart is a diagram of data on the price of the security in the past. The chart contains no data in relation to the future. None at all. How could it? So if you look at a chart expecting to see something … Continue reading