The No.1 Trading Tactic You Need to Know

Trading Strategy and Tactics

  There’s a certain excitement associated with starting to trade. You are acting to make a desire come true. You get an account and put on your first few trades. Some win, some lose. You accept the losses. After all you are just starting. The most important thing is that you are making it happen. But, after a little while the excitement has gone and the fact that you are losing is what really matters. You need to learn more about how to do it right. You start to ask questions and look for answers. You learn a bit and … 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

4 Reasons a Trend will End

Does this sound familiar? You decide to trade with the trend. You identify the trend and enter a trade in that direction. The market then stops moving in the direction of the trend and you lose on the trade. If you have ever used a trend following strategy then you will recognise this outcome. It can happen so regularly that you may have decided that a better approach is to wait for the market to move in a clear direction and then trade against it. How did that work out? I don’t know when the trend of ever bigger beards … Continue reading

The 9 Stages of Trading

Have a look at the online platform offered by any binary Options broker. What feature do they emphasise most? It’s probably that you can make good profits quickly. It’s true that you can, but it’s by no means certain. But we’ll leave that aside for a moment. What’s the next headline? Quite likely it’s the ease with which you can trade. And if you look deeper into one of the eBooks that are offered then this feature will be right up front. Again it’s true that Binary Options are very easy to trade. But don’t be fooled by this hype. … Continue reading

Can You Learn to Love Your Losses?

Stanley Kubrick’s movie comedy Dr. Strangelove or: How I Learned to Stop Worrying and Love the Bomb was released in 1964 at a time when nuclear war was a real possibility and reason for worry. In the movie a nuclear war ultimately could not be avoided.  Fortunately, in reality, such a catastrophe has been avoided. We won’t go into the movie’s plot as it has far too many twists and turns but it contained a few strong messages. The most obvious was that people in authority, although powerful, are still human and are therefore fallible and subject to irrational behaviour. … Continue reading

Thinking of Using a Martingale Strategy?

In a previous post I wrote about a so-called trading strategy that is presented to traders in Binary Options as a virtually sure way to win. Click here to view that post. In fact, as we showed, it was nothing of the sort and actually amounted to a virtually sure way to lose your whole fund. What’s wrong with using Martingale? The main problems were that there was no actual market analysis included and it was really just a Martingale betting strategy dressed up a bit. According to Wikipedia, because it is very easy to learn and the maths appear … 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