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

Don’t Forget How to Trade

Can you forget how to trade? Well if you view trading as simply pressing the Call or Put button on the broker’s platform then you are not likely to forget how to do that. And even if you do there is plenty of assistance on brokers’ site to remind you how simple it is. The problem of course is that placing the trade is only a tiny part of trading and by far the simplest among the many stages. I’ve written before about the various stages of trading here. You’ll soon realise that it is very easy to forget large … Continue reading

The Limits of Positive Thinking

An industry of not inconsiderable size has grown around the exhortation in its various guises of the need to be positive: positive thinking, positive outlook, positive action. I could go on. It’s a simple basic idea which seems intuitively attractive: if you start on any course of action with a positive outlook then you are already ahead when compared to the alternative. However, it’s all too easy and too common that a basic requirement if you are to with this positive outlook and meaningful aspirations is omitted. This is the need to plan. By planning you discover what advantages you … Continue reading

Good Trades and Bad Trades

I’ve a quick question for you: What is the difference between a good trade and a bad trade? Seems pretty simple – a good trade is one where you win a profit, a bad trade is one where you lose. Right? Wrong. It’s not quite that simple. Look at it this way. You have a number of decisions to make and you can only really control a small number of the variables that will determine the outcome of any trade. You have total control over which market to trade, in what direction, over what time period and over the amount … Continue reading

When is a Strategy not a Trading Strategy?

Probably the greatest benefit of Binary Options for a new trader is that they are just so easy to understand. There’s no need to set targets or stop losses, no need to calculate risk to reward ratios. You either win or you lose and you know your risk in advance. It’s easy to open an account with a small fund, it’s even easier to open a trade and there’s virtually no need to manage the trade once it’s opened. And therein lies one of the greatest problems. It’s so easy to trade that it can appear as though the main … Continue reading