Price action can be classified into two general conditions - range bound and trending.

A range bound market tends to remain between defined support and resistance levels and fails to trade to new highs or new lows. A trending market on the other hand tends to trade to new highs or new lows and may extend for a significant period of time. As the market approaches a significant high we may either decide to sell anticipating the range to continue or buy anticipating a breakout. Read more »

There are two types of day traders - scalper and momentum traders. The scalper buys and trades stocks within minutes, whereas a momentum trader buy stocks that fluctuate from high to low during the day. But at the end of the day, the ultimate goal of a day trader is to buy stocks and sell them at the highest possible value. Read more »

1. Read both the books by Mark Douglas which cover trading psychology BEFORE you read or do anything else. If you don’t, I’ll say I told you so when you hit a failure barrier and don’t know why.
2. Stop loss policy - you MUST have one and practice, more practice and even more practice at sticking to it. It will not be easy but it is an essential discipline to profitable trading. Read more »

Just as important as controlling risk (money management), traders also needs to have confident in oneself. Traders need to know that even with a profitable trading system; one could also have numerous losses in a row. This is usually referred to as drawdown. Being aware of this can help to prepare you to control risk and not abandon a good trading system when drawdown occurs. Read more »

Why Money Management?

Best system will fail in long-term if it is without proper money management. On the contrary, bad system can turn profitable if used with a good money management. Currency trading always go through the cyclical ups and downs, where winning and losing are just part of the game. However, with the right money management, you might be able to hold onto your winnings, while minimizing losses during bad times.  Read more »

Money Management and leverage, stop losses and targets

This is one of the most important and most overlooked parts of trading. Many traders take huge risks with their capital in the hope that they will “get rich quickly” or recover previous losses with one good trade. I would like to suggest some simple guidelines for managing your trading account with the Expert Forex Systems, which will help you to reduce risk and maximize returns.
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Provided By David Jenyns & Trading Secrets Revealed

The previous article showed the principles behind a trailing stop. In this article we will look at taking this one step further and using stop losses not just to limit risk and lock in profits but also to enable you to produce even more profit but increasing the level of risk you are in the trade at the appropriate time. This does not mean that you trade at a more risky level – remember this is a cardinal sin for traders. It does mean, however, that you take on more risk at a time in a trade that is already in profit. This way, you can be assured that the trade will never lose you money but you will be able to give it more freedom to develop without being stopped out too early! Non-fixed Average True Range (ATR) Based Stop Losses
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Provided By David Jenyns & Trading Secrets Revealed

In the previous article, stop losses were discussed as being crucial to prevent excessive losses from building up. In this article, we will discuss a more advanced method of using stop losses not only to protect you from excessive losses but also to help you produce profits on winning trades. Read more »

Anyone familiar with the world of Star Trek already knows what this article is about: Winning an un-winnable situation.

Ever had a client ask you to get an impossible ranking for a term like “Lawyers” or “Digital Cameras”? If that did happen, would you take it on? Would you be able to get it ranked?
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History: Introduced by Marco Dorigo,  ACO is a probabilistic technique for solving computational problems which can be reduced to finding good paths through graphs. They are inspired by the behaviour of ants in finding paths from the colony to food.

Overview: In the real world, ants (initially) wander randomly, and upon finding food return to their colony while laying down pheromone trails. If other ants find such a path, they are likely not to keep travelling at random, but to instead follow the trail, returning and reinforcing it if they eventually find food.
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