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Good Trade - Bad Trade

good trade bad tradeIt's interesting to hear how people define success and failure when it comes to trading.

What constitutes a well thought out disciplined trade? An ill conceived one?

What someone perceives as being a good trade. What someone perceives as being a bad one.

Here are some guidelines that may help you along. But I want you to think about consistency. After all anyone can put their hard earned money on the table and come up with a winning trade every now and then.

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The Bear List

watch listThe momentum anomaly can be found in both bull and bear markets.

Whilst I personally focus on trading the long side with momentum, it's a popular choice for discretionary traders on the short side during times of negative sentiment.

Considering global markets are at risk of a more sustained correction, or possibly even a bear market, we've introduced the Momo-50 Bear Watchlist within our Trade Long Term service.

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What to do during major pullbacks

pullbacksBull markets make us complacent.

Be it property, stocks or commodities, investors and traders get so used to the markets going up, that they panic when things start reversing and some of their profits disappear

Yet pullbacks are inevitable. If pullbacks are not in your thinking then your investment plan is not a realistic one. In fact it is likely to be a plan fraught with danger.

However, if you design your investment plan to cope with market ups and downs, then your actions during major market pullbacks are simple. That is, do NOTHING.

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12 Steps to Trading Success

trading mentorHigh intelligence has nothing to do with trading success. There are more important characteristics and behaviours that go towards the foundations of successful trading.

Some are obvious, others not so obvious as on the surface they appear unrelated. In today's newsletter we could outline the 'Dirty Dozen' factors that have contributed to wiping out the trading capital of many a trader.

Instead we'll focus on the 'Decisive Dozen' that, if adhered to, will assist you to trade over the longer term.

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Stairs and Elevators

 stairs and elevatorsA nasty week in the markets last week.

After hitting new equity highs in recent months, my portfolios are now in drawdowns of between -8% and -14%.

They all remain within the realms of normal operations.

It's a reminder that trading isn't comfortable. Indeed it can get downright uncomfortable at times. If it were easy all the time then everyone would be doing it and be successful at it.

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Nick Radge interview with Quant News

Nick Radge 2018Nick Radge has been trading and investing since 1985, and has worked for global investment banks in Sydney, London and Singapore. He is an ex-Director at Macquarie Bank and ran his own hedge fund. More recently he has been appointed the Vice President of the Australian Technical Analysis Association. He is also the author Unholy Grails – A New Road to Wealth as well as the founder of The Chartist, an online advisory and research website designed for Australian traders and investors. He provides extensive personal consulting on trading and investment plans, computer modeling, technical analysis and other areas required by Australian and international clients. Today he resides in Noosa, Queensland, Australia with his family and actively trades CFDs.

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Do you have what it takes?

do you have itAlthough the statistics vary, around 75% of new traders quit after two years, with up to 90% packing their bags after four!

Sounds dramatic, yet these statistics are similar to anyone in the workforce who is trying to succeed at a higher level in their field.

However, most new traders don't have the training and support to help them succeed, unlike someone in a larger organisation. Or worse, feel they don't need these things to be a successful trader.

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An Indicator That Speaks Volumes

glabal chart researchVolume is a major indicator when analysing markets.

In the Global Chart Research we often mention the important relationship between price and volume. Volume can help determine market direction.

Yet the significance of volume is largely ignored or misunderstood by most traders.

Volume is the fuel that drives our markets.

How can we understand the meaning of volume when markets will go up on high volume one day, then do the same thing the next day on low volume? To confuse things more, price can head sideways or down on the same volume too.

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Will Rising US Interest Rates Drive Stocks Down?

US Interest RatesThe US Central Bank increased interest rates again this week - the eighth time since 2015 and cemented expectations for another rate hike this year. The Fed Funds rate is now at its highest level since October 2008 when Lehman Brothers collapsed.

The Fed cited an economy that remains strong and an inflation rate that hovers near the 2% target. More increases may be warranted through 2019.

Many investors believe this could be the trigger for a reversal of the massive stock market gains that have been created by record low interest rates and expansionary measures by global central banks.

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