Apples and Unicorns; The ‘Risk/Reward’ Ratio …is a LIE (unless you’re an unusual kind of trader). Reward to Risk Ratio: So you think the greater the risk, the greater the reward huh!? A lot of people like...
Latest Posts
Slippage – Real and Imagined
Real or imagined; Does slippage really exist, or are you just making it up? It depends on the type of your order. First let’s begin with the definition of slippage which is the difference between estimated transaction costs...
Trading Neural Networks
Neural Networks and Stock Trading; No, those aren’t expert systems; anybody still trying to make a trading system with an expert system? Neural Networks are a form of artificial intelligence in which a computer simulates...
Stop Loss Orders
Having funds with Stops; Another Article on Using Stop Loss Orders – Are stops a good idea? Yep. Why? There are a few good reasons… First, top loss orders are a good form of disaster insurance, though they are far...
Technical Analysis
First a definition – Technical Analysis is a method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a...
Diary of a Trading Loser
A brief history of one new trader who did everything just like everybody else, and lost money just like everybody else. It’s an autobiography… In the years I have traded, I have seen many people come and go...
How to Win more at Trading by Losing Less
At first glance many people think the better traders, the ones who make all the money, do so by enjoying more winning trades and/or trading at better prices. So when you or I buy a share at £4.50 and sell it at £5.00...
Stock Market Losers
Losers, and what they do; I don’t care what the salesmen, motivational speakers, brokers and your Cousin Bob say to the contrary; losing is the most important aspect of trading. Winning is a distant second. If you go...
What can Investors Learn from Gamblers and Vice Versa?
Investors and gamblers share unexpected similarities in their approaches to risk, strategy, and emotional discipline, which can offer mutual lessons. 1. Strategic Thinking Successful gamblers use systems like the Kelly Criterion...
Setting Odds: Strategies on How Bookmakers Make Money
Can you make more consistent sports bets? It is possible, but it may seem unclear how to achieve that goal. In the long term, most bettors lose money. One reason is they do not realize how bookmakers make money. You can take...