Using Computers In the last 20 or 30 years, there’s been a big change in the way that trading has taken place. Thirty years ago it would have been unimaginable that you would be able to sit at home and trade actively and...
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Less Common Orders and Summary
Less Common Orders These are not often used, but you may come across them, and even find them useful on occasion. The Market on Close (MOC) order tells the dealer on the trading floor to buy or sell for you in the last minute of...
Trailing Stop, Stop Limit Order and Order Modifiers
Trailing Stop Although widely used, some brokers don’t offer a trailing stop order. It is similar to a stop loss order, in that it becomes a market order to sell (for a long position) if the price goes down to it. The...
Order Types
There are many different types of trading orders, sometimes depending on the type of security you are trading, and although some brokers will not have them all, they should have the most frequently used ones. You will probably...
Trading Tactics
When it comes to entering the position, there are a number of ways we have looked at in previous modules, and here’s a summary of the main tactics. There is nothing special about them, they are simply ways that have been...
The Way You Think and Position Sizing
The Way You Think The way you think is the most important aspect of trading. There’s an old axiom which is still true, ‘Cut your losses and let your profits run’, which most traders know, but many find difficult...
Risk Management: Risk versus Reward and Using Stop Losses
The Stop Loss is Supreme Trying to predict the market is a fundamental tendency, which most traders or investors do. Trying to predict the market. Caution is always the name of the game. The stop loss is supreme. As everyone...
Money Guidelines and Diversification
Money Guidelines Let’s start by going through some general guidelines that have worked over the years. After you get some experience, if you think you know better you can do something else, but these guidelines are designed...
Money Management: Introduction
Module 11 – Money Management and Computers Introduction Money management may be the most important skill you can learn for successful trading. How you view your trading account and how you determine how much to use on each trade...
Zig Zags and Flats
Corrections: Zigzags and Flats While the principles are clear and simple, the difficulties with the Elliott Wave Theory are in correctly identifying the various phases. The five wave move is not so difficult, but the correction...