Turtles are what we call a group of traders trained by Richard Dennis and William Eckhardt in the most famous experiment in trading. I wrote a series of articles about turtle trading, the story behind Wall Street legend. In this article, we will learn more about the turtles, the techniques that made them millionaires.
A key of success for the turtles is how they manage their risk or risk management. Risk management is called in many names. Sometime you will find it called money management or position sizing.
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Trading strategy is a method of trading that use objective entry and exit criteria that have been validated by historical testing (back-testing) on quantifiable data.
A strategy trader is trader who trades a strategy which means the strategy trader is restricted by a set of trading rules. These trading rules make up the strategy.
As a strategy trader, you have to strictly follow the rules. You must not deviate from the rules unless you change your trading strategy.
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A question that every traders have to find themselves the answer is “How do I know when to buy?“. The answer for the question may be the same or may be different for each traders. It depends on trading styles and trading system traders use. There are several approaches or rules that use to identify the entry.
As a short-term traders, you may buy when the price is at the bottom of its corresponding channel and oscillator, such as Relative Strength Index (RSI) or Stochastic, is in the oversold zone. In vice versa, when the price is at the top of its corresponding channel and oscillator is on the overbought zone, you may go short.
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The expectations is one of the aspects traders should take into their consideration when trading. I have mentioned to expectations many in many of my articles. In this article, we will dig a bit deeper in order to paint clearer picture in this topic.
The question “How much do you expect to earn on each trade on average over the long run from your trading system or method?” is a good one to describe what the expectation is in trading.
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There are many experts who teach the psychology of trading. Also, there have been many books written trying to teach the discipline needed for trading. Although the psychology is a important key for trading, you do not need to spend your money and your effort attending seminars to learn it.
This article intends to provide you a few simple psychological rules for trading that should greatly enhance your ability to trade effectively
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Have you ever heard that “the best place to hide a secret is where everyone can see it”? Why? It is because if everyone can see secret, then they do not think it is a secret. This is also true of the trading secrets.
You will see, in the following, that you all know what they are the trading secrets well, but perhaps you do not realize their importance.
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There are a number of channel trading systems commercially and non-commercially available. Some have shown good profits and are based on exact mathematical rules. Others involve some judgment in trading and cannot be programmed.
In this articles, we will get to know two of channel trading systems, Keltner Channel and Bollinger Bands
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Trader tend to believe that they do not need to address money management until they can prove that a particular trading system will work and they can make money using it. This is the most common areas for serious mistakes by traders and it is a costly mistake.
As I have always mentioned that a sound money management is a component of a complete trading system. So, do not wait to manage your trading money until you can prove that a trading system makes money. Although you can gain profits from the system without managing your trading money but, who know, you might gain much more profits with a proper money management.
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As I mentioned in previous article, a key to success in day trading is to minimize the size of your loss while maximize the profit for each trade.
Since day traders have to keep their losses small, hence, they will get stopped out often. This causes their win/loss ratio of their trades to be low because it is hard to maintain a high percentage of profitable trades.
Therefore, the trading plan for day traders is to pick the most promising opportunities. Simply stated, enter a trade while the price is most likely to move in the direction of the trend with maximum range.
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| Quote | Last | Change |
|---|---|---|
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| ^FCHI | 3070.72 | +43.57 |
| ^N225 | 8729.29 | +95.4 |
| ^HSI | 19039.15 | +116.83 |
| ^STI | 2823.75 | +33.59 |
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