Beginner Traders Archives

Why should we trade long only?

There are a couple of reasons I’d suggest only trading long. When I was trading commodities, we traded long and short. With equities it’s long only for a couple of reasons. Firstly, my strategies and system research show while trading on the short side can be quite profitable, the risk adjusted return (I’m talking on […]

The number 1 reaon people fail at trading

The #1 Reason Why People Fail at Trading

The #1 reason why people fail at trading? They are undercapitalized. It has nothing to do with a trader’s strategy. It has nothing to do with trend following, short term trading, swing trading, scalping, mean reversion, whatever. All trading has drag via commission, so you have to work backwards. Let’s assume that your trend following […]

From Trading Commoditites to Trading Stocks

From Trading Commodities to Trading Stocks

What has caused me to evolve and drop the commodity stuff and go straight into all stocks is a really good question. I started trading commodities –same as what your S&P 500 is in the Australian market, which is called the share price index. That was 1995 or 1996. I dabbled around in shares all […]

5 Tips to Long Term Success in the Stock Market

Oh, the joy and excitement of being a new stock trader. You’re enthusiastic, motivated and happy to share the gospel of all things trading with anyone who’ll listen. You wake up in the morning (or during the night) and pull up Bloomberg or your online broking account on your iPad and check your trades. Those […]

Trading Routine; Every Trader Should Have One

In this video Nick Radge, Head of Trading & Research at The Chartist, discusses his daily trading routine. Hi, it’s Nick Radge. One of the things I commonly get asked is, what’s my daily routine? Now I’m not a day trader. I don’t sit in front of the screen all day watching the numbers roll […]

Position Sizing With Limited Capital

A question related to Adaptive Analysis for Stocks about position sizing: Let’s say I have a system where I want to size my capital the same way I do with the Growth Portfolio. That is I divide my capital into 20 equal parts. Let’s say I have $100,000 and therefore each size is $5,000. I […]

Fibonacci Time & Price

Fibonacci analysis is used to monitor the extension or retracement of price in a chart pattern or the extension of time based on the prior period. About Fibonacci‘Named after Fibonacci, also known as Leonardo of Pisa or Leonardo Pisano, Fibonacci numbers were first introduced in his Liber abaci in 1202. The son of a Pisan […]

Glossary: Your Guide to Market Terminology

Grab your free Glossary now The financial markets can be confusing, especially when you are just starting out. We have put together this glossary of market terms to help you learn to trade the financial markets confidently.

Can I trade with a small account?

What strategies are needed when you have a small account, around $5,000? If you’re going to use correct risk management tools, such as fixed fractional position sizing, or the 1%, or 2% rule, first of all you’re not going to be able to do too many trades. And second of all, your position size is […]

Best advice for Traders

What is the best piece of advice you’ve ever received? I think understanding why your strategy makes money. That’s key. If you don’t know why your strategy makes money you’re never going to make it work if things get a little bit difficult. So the more you can understand why your strategy makes money, the […]