Beginner Traders Archives

Is Shorting Worth the Stress?

Is shorting worth the stress? When markets start to sell off, the common question is “Should we be shorting?” Fact is, bearish markets are different from bullish. Shorting is definitely harder than it looks. Downtrends are difficult to ride. They have swift counter-trend moves which often knock out trailing stops. The largest profit can be […]

Trading Lessons To Keep You In The Game

Is your preferred trading strategy systematic? Rules based? Discretionary? Here’s the thing… There are never any guarantees. Even though marketers and spruikers will tell you otherwise. Here’s the thing: throughout your trading career, you are going to be wrong, and often. I have always liked two statements when it comes to trading: 1) Trading is 80% […]

An Indicator That Speaks Volumes when Analysing Markets

Volume 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 […]

Will Increased US Interest Rates Drive Stocks Down?

The 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 […]

The Path of Least Resistance

Let’s continue our discussion on supply and demand. You can read our previous posts here and here. 1) If selling has decreased substantially on a down move it’s a sign that sellers are exhausted. Supply has waned. The market will have a tendency to want to go up. 2) If buying has decreased substantially on […]

Supply and Demand – Successful Traders

Understanding supply and demand can help us become more successful traders. Supply and demand tends to be the professional trader’s main focus. This means researching the relationship between price action, volume and price spreads. Novice traders however focus on technical analysis indicators; moving averages, stochastic, time cycles, astrological factors etc. The fact is, some feel […]

Random Markets & Other Misconceptions

Most people see movements in the stock market as being random. Or at the very least heavily influenced by news. Yet how many times do we see a stock or market move in the opposite direction to what we thought it was going to do? Sudden moves can often surface out of nowhere, and appear […]

Tips for Trend Following

What are some tips for trend following? We all like trading trends. It’s the name of the game when it comes to trading profitably over the longer term. What are the trend trading rules? Here are some simple yet robust rules that will hold you in good stead no matter what times frames you are […]

Accountability for Trading Success

In a recent article we spoke about the isolation that can come through trading for a living. So, how can isolation lead to accountability issues? In a normal day job, most people are accountable to their immediate manager and may have KPI’s to meet. As a minimum the manager is keeping a watchful eye over […]

If I had to choose one trading strategy…

If I had to choose one trading strategy it would be without hesitation – trend following. To be more specific, long side trend following using individual stocks. Why? A variety of reasons. In my view it’s the easiest way to generate a positive expectancy, specifically the ability to allow winners to get bigger, yet keep losers […]