Theory: When to Exit

..you actually make bugger all money if you can't execute and exit as precisely as you entered...Hi all,Welcome to another article, this time on when to exit a trade. When beginner traders start looking for that magic "make me a bucket load of cash" trading system, quite often the last thing thought about is their exit strategy. Usually...

Read rest of entry

Theory: What To Trade?

... I can't tell you what to trade as much as the next person, essentially you need to make that decision yourself ... Hi there!Time for another theory article while the markets are quiet, this time on the first question asked by every new trader I see in the chat rooms, "Can someone tell me what to trade?". Now I can't tell you what to trade...

Read rest of entry

Theory: ADX

Hi all! Well I have mentioned previously that the only indicator I consistently keep on my charts is an indicator called the ADX, or Average Directional Index (why do they always like using "X" for index .. shouldn't it be "I" ... anyway). I use it primarily to keep me in trades that are moving strongly, and to give me hints on how strong...

Read rest of entry

Theory: Candlesticks

Hi all, today I'll have a quick chat on the theory of Japanese Candlesticks. In case you did not realise, there are three main ways to view a trading chart, you can view it as a line chart, a bar chart, or a candlestick chart. Below are what each of these look like:Candlestick's were first introduced in the 1600's, strangely enough to analyze...

Read rest of entry

Theory: Chart Correlation

I thought I would mention a very simple concept that I know a lot of traders know of, but there may be some who don't. The concept is of chart correlation, i.e. when one pair goes up, another pair goes down.This concept is especially true for all the majors and there is a very simple reason why. All the majors have one thing in common, the...

Read rest of entry