Knowledge Centre

Follow Your Strategy

This stock trading question comes from Gregg O. whose #1 challenge is… “My challenge is following my strategy and taking a buy signal in the ASX after a large fall in the US the prior night” A very good question. We’ve been programmed to expect Australia will follow on from any move in the US […]

How to Manage Winning Trades

This stock trading question about winning trades comes from Jacob G. whose #1 challenge is… “My challenge is managing winning trades and knowing when to close a winning position…” This is a very common question, mainly because there are various psychological issues at play. The fear of giving back existing profits is probably the most […]

Mathematical Edge for Comfort and Trading Success

This stock trading question from Anton B. may not appear to relate to mathematical edge but let’s take a look. Anton says his #1 challenge is… “As my account size has grown and I am subsequently taking larger positions my levels of fear and the swings in my account have also increased.” In many instances […]

How to Handle Drawdowns

This stock trading question in regards to how to handle drawdowns comes from Ben B. whose #1 challenge is… “Working with a system where the drawdown is so big that I can’t sleep at night?” A great question. Let’s start by defining drawdown. Drawdown means the largest equity decline your strategy will theoretically have in […]

When to be Fully Invested

This stock trading question asking about when to be fully invested comes from Jim H. who asks…. “I never know when to commit to being fully invested.” Let’s start with the foundation for success: you want to be fully invested when the market is rising, and less invested, or in cash, when the market is […]

Managing Emotions

A common theme Managing Emotions has emerged among the stock trading questions we receive: “It is hard to stick with the same strategy during drawdowns, due to the fact that the market always seems to be tanking whenever I decide to trade again.” – Andy N. “My biggest challenge is sticking to a strategy when […]

How to be a Disciplined Trader

This question about How to be a Disciplined Trader comes from Mirko M. who asks… “There is no strategy that can work if I am not disciplined to apply [it]…and I am not. So how do I become disciplined?.” First, let’s define discipline. Discipline is essentially doing what you know you should do, whether you […]

Will I Influence the Market?

This stock trading question wondering if he will influence the market, comes from Steve H. who asks… “My portfolio is around $500,000 so my trades are over $20,000 and I often wonder on some of the smaller stocks with less volume if, when I place my trades at about 7.30 in the morning I’m having […]

How to Handle Losing Trades

Are you able to handle losing trades? This stock trading question comes from Nick A. who asks… “My #1 challenge in the markets is not getting too low emotionally after a losing trade and maintaining the courage to take the next trade after experiencing loss.” A great question. In the short term the best course […]

How to Trade During Takeovers

This stock trading question in relation to how to trade during takeovers comes from Phil M. who asks… “With regard to takeovers: (1) Do you EXIT when you first hear of a takeover or do you wait till the takeover is completed than you exit the position? (2) How are you alerted to takeovers?” These […]