The first step to becoming a profitable trader is developing loss and risk management rules and habits.  This may seem strange, but at the foundation of any probabilistic endeavor, of which trading is one, is managing risk.  Either you manage risk and loss like a professional or you are a degenerate gambler, no different than…

One of the dangers with hindsight price action analysis is that almost every move looks obvious in retrospect.  As the eye follows the subsequent price movement it seems apparent that the subsequent price movement was the natural outcome of the prior price action.  We are all price action savants in hindsight, unfortunately, this genius level…

Having conviction in your forecast of market direction and trade setups is important, but it also is dangerous.  Developing as a trader requires that you find a balance between a strong conviction that allows you to hold through pullbacks and a willingness to let go of a trade or a market forecast once the market…

Let’s talk about SIM trading.   What is SIM trading is, what are the benefits of SIM trading, how to use SIM trading properly, what are the limitations of SIM trading and finally what might be a better alternative to SIM trading.  What is SIM Trading SIM trading goes by several names in the trading industry…

Price has been driving lower for the last thirty minutes, price consolidates briefly, and you enter short on a picture-perfect pullback.  Your stop is set several ticks above the swing high of the pullback.  Price moves aggressively in your direction.  You congratulate yourself for the textbook entry.  High fives all around!  Trading isn’t as hard…

In the world of retail traders small accounts are the norm not the exception.  With new traders this is doubly true.  Traders can open a trading account with as little as $2,000 and once opened some brokers allow accounts that dip below $1,000 to still trade.  Yet, much of the trading literature out there puts…

I love trading using price action and candlestick patterns.  If anyone, with any exposure to trading, were to look at my charts it would be the first thing they would notice and they would rightly conclude that I am a price action trader.  Again, let me say I love trading using price action and candlestick…

Why the trading journal is the serious trader’s best tool for trading improvement One of the most often repeated maxims of trading is – journal your trades.  Almost universally trading instructors, coaches and mentors strongly encourage beginning traders, struggling traders and even seasoned and successful traders keep a trading journal.  Yet, journaling tends to fall…

Time and time again, one of the most common questions asked by new traders is, “What is the best trading strategy and what is the best market or instrument to trade?”  This is a tough question without an easy answer and unfortunately there are hordes of people willing to tell you and sell you the…