WiseMan Trading

 Winners and Losers in the Market a. Who is dominating the current swing, bulls or bears? b. Are they correct? c. If they‟re wrong: i. Where is this move likely to stall? Where is the opposite order flow likely to enter the market? ii. Where will these traders have positioned their stops? d. If they‟re right: i. Where are these traders targeting? Where are they going to take profits or lighten their position? e. If they‟re in the right direction, but late: i. Where is the worst place to be entering late in this move? Where will the late traders be stopped out? Trapped Traders a. Where is the last group of trapped traders? b. Where are they hoping to get out? How will that affect price? c. Where will they give up and bail out? How will that affect price? Expectations - Most Likely Price Movement a. What do you expect the market to do from here? i. Why do you expect that? ii. How would price have to behave prior to that move occurring? iii. Is price behaving this way? b. If the most ...

The Wheel of Success in Trading  There are three spokes that make up, what I call the Wheel of Success as it relates to trading.   The first spoke is content Content consists of all the external and internal market information that traders utilize to make their trading decisions. All traders must purchase value-added content that provides utility in making their trading decisions. The most important content being internal market information , which is simply time and price information as disseminated by the exchanges. As we are making our trading decisions in present time based on time and price, In order to "scalp" the markets effectively, we must have the most live up-to-date information . The second spoke is mechanics Mechanics is how you access the markets and the methodology that you employ to enter/exit your trades. You must master mechanics before you can enjoy any success as a trader. A simple keystroke error can result in a loss of thousands . A trader can ruin his e...

 So we will talk about the things which have been holding you back in next few blogs coming in next months taking each specific problem at one time  -  1. Cut winning trades short even though you know your trade setup is solid. 2. Failed to pull the trigger on a perfectly good trade because of fear of loss. 3. Let losing trades run hoping for a return to breakeven. 4. Added to a losing position in the hope that the market would turn around. 5. Made profits in the morning but gave them back in the afternoon. 6. Became more aggressive after losing money. 7. Took unplanned trades when the market suddenly moved. 8. Stopped trading or reduced position size after a loss. 9. Traded greater position size than prudent money management practice would advise 10. Held trades longer than they should have been held looking for a “home run.” 11. Failed to take a perfectly sound setup because the last two trades were losers. 12. After a day of big ...

we considered a few questions: Should we use a tight stop loss to cut any losses quickly or a wide stop loss to allow some room to move? How quickly should we move the stop loss to breakeven? Should we take profits at a target, or should we let the profits run, perhaps trailing a stop behind the price? In attempting to answer these questions we looked at a number of charts, chose entry criteria, and then looked at possible options for the exit. And this is what we discovered: Firstly, in each case, the profit or loss taken out of the trade was more a result of our chosen stop and exit method, not our entry. For the same entry, there were numerous possible exits, some profitable, some breakeven, and some at a loss. And secondly, we cannot know, except with hindsight, what will be the most profitable exit strategy for that particular trade. In other words - the exit is more important than the entry. The exit has more bearing on whether the trade ends in profit, or in the loss. But there ...

1. Having no plan An investor with no plan does not know what he wants. Investments are made in order to finance or accomplish something. In order to be able to invest in a proper manner, an investor should know what he is trying to achieve. He needs to have a reason he is investing for. For some investors this may be for the retirement, for some it may be the education of the children, but there are also who are willing to invest for the short-term goals such as a vacation. Having a plan helps the investor to decide in what type of securities he must invest in, how long he should invest and how much he should invest in order to get the expected return that he wants.    6 financial planning mistakes that can change life 2. Going with the market trend Some investors give too much importance to what is written in financial media. They almost always refer the Financial news before making any investment. By investing in this so-called fashionable securities, investors fall into a ...

  Since our childhood, we have been taught to be forward thinking and we have always been asked to plan long term. Don’t you think that our parents started planning before we came into this world? While we were enjoying our kindergarten days, our parents planned long term. Starting from, which school we step into to our higher education. From our marriage plans to their own retirement plans. Basis the long term investment plans, they made our future secure. They enjoyed the happiness of their family, in return for their look-ahead approach and long-term investment goals. In this article, we will understand as to how long-term investments serve us future security and much more. ---------------------------------------------------------------------------------------------------------------------------- What is long term investment? Long term investments means holding assets such as stocks, shares or securities etc for more than a year. Usually, the long-term investments means holding ...