Not a financial advisor, not financial advice, bla bla bla.
You know the drill.
Over the years, I’ve become increasingly disgruntled with how traders (especially trading educators) speak of psychology in trading.
It has become something to simply pay lip service to, without offering anything substantively useful.
“Psychology is everything in trading.”
2000 likes, 500 retweets.
As a quick aside, trading wisdom is generally quite useless until you can relate to it and internalise it via personal experience.
I briefly wrote about this idea in a tweet:
Out of all trading-related topics, trading psychology gets the shortest end of the stick. …
I am not a financial advisor.
This article does not constitute financial, investment, legal , or any other regulated form of advice.
It is the lament of a socially decrepit 23-year-old writing nonsense on a Friday evening.
It is intended for entertainment purposes only.
The aim of this piece is to explore the price action and broader context surrounding Bitcoin/Dollar before its correction from $9600s to mid-$8000s in two short days.
My technical view was that the mid-$9000 area was support and I was expecting strength.
I was wrong.
More importantly, I think there are many good things to study from that period of price action. There are lessons to be learnt going forward, which I’d like to share with you. …
The aim of this article is to provide insights on how the daily chart can be used to derive a shorter-term or intraday directional bias.
This article will assume prior knowledge of what directional bias entails. Should you not have a clue, I strongly suggest you read my article on the topic before continuing with this one.
It can be found here.
I am not a financial advisor. This article contains no financial, investment, legal, or other regulated forms of advice.
It is strictly for entertainment purposes only.
Trading is risky and you can lose all of your capital (and more). …
I am not a financial advisor. I do not and will not offer financial advice. This article is strictly for entertainment purposes only. Please consult a regulated professional in your jurisdiction before putting any capital at risk.
TABLE OF CONTENTS
Part 1: What Is Directional Bias?
Part 2: Constant vs Situational Directional Bias
Part 3: How Directional Bias Affects Trade Selection & Trade Management
Part 4: Tools for Directional Bias
Part 5: Conclusion
A directional bias is formed when a speculator has an explicit expectation of direction in a given market.
Directional bias can also be thought of as a probability enhancer. In the presence of a bullish directional bias, long setups are more likely to be successful than they would be otherwise. In the presence of a bearish directional bias, short setups are more likely to be successful than they would be otherwise. …
The aim of this article is to give you a rough idea of at least these three things:
A trading plan is an outline of how a trader will employ their trading system in the markets they trade over a given period of time.
Another way to think about it is the following: a trading plan is essentially the real-time application of one’s trading system.
Very simple example: Bob’s trading system tells him to sell rounded retests of broken, 3-touch support levels on the H1 time frame. Bob scans through the markets he trades, and notices that price is approaching one such level that meets the requirements perfectly. Bob knows his system dictates that he’s a seller at that level, so he starts to plan his involvement (entry price/trigger, stop loss, target, risk, and so on). …
The aim of this article is to outline the author’s view on what a trading system is and to guide novice traders towards systematising their approach to trading.
I will note from the outset that this is a very broad topic. Trading systems exist on a spectrum; from the rigid and automated to the loose and discretionary. This outline is by no means prescriptive.
The idea is to help novice traders be more organised in how they approach their trading and to set the framework for developing a set of rules or principles to guide them in this endeavour.
Note that this is also aimed at discretionary traders. …
All traders will have losing trades.
As you’ll know from my risk management video, one can still have a profitable trading career even if not every trade is a winner.
However, exacerbating the beating one’s account balance takes after a losing trade is a very easy thing to do.
I’ll share with you a list of some of the worst things to do after a losing trade.
These are mostly sourced from my trading journal and thus are based on real trading examples.
Thank you to DonAlt for the help.
The moment you lose a trade and see some of your equity vanish is probably one of your most emotional and irrational times as a trader. …
This is a lot longer than I expected!
I’ll likely make it a 2/3-part series.
This first article mostly just identifies my trading teachers and talks about what I have picked up from each one.
I am going to try to make this a more free-flowing piece of prose compared to some of my more mechanical articles.
My aims are as follows:
I have been delaying writing this article for some time now, simply because of the number of sub-arguments that arise when one tries to answer whether technical analysis works.
I am going to try to keep my arguments as simple and pertinent as possible. This article is primarily aimed at:
— Those who have heard the term technical analysis but do not know what it entails
— Those who are well aware of the practice but remain sceptical
It is at this point I should stress that by no means am I rehashing some orthodox doctrine on what technical analysis is and isn’t (if there were such a thing). …
This is not financial advice and I am not a financial advisor. I’m sure there’re plenty of licenced professionals in your jurisdiction. Speak to them, not strangers on the internet with Hyman Minsky avatars.
These are just my loosely-held, shittily-formed opinions.
Leveraged trading can exacerbate your losses.
Nearly every day, whether on Twitter, Telegram, or Discord, I see traders struggling to understand how to calculate their position sizes and generally make sense of leveraged trading.
It can be confusing at first.
In this article, I’ll break the concepts down to first principles and give you a very simple way to calculate position size, as well as understand how and when to employ leverage. …