Trading Blogs Featured

No one can go on trading at top speed all the time!

We've seen a new milestone, light sweet crude for July delivery, New York's main oil futures contract has jumped on Friday (6/6/08) by $US10.75 a barrel which is the biggest one-day jump ever - to close at a record price at $US138.54 per barrel. The reason for the record-setting surge was a result of fears of a new Middle East conflict occurring from a comment made by a top Israeli official about Iran. While the closing price for the crude oil was at $US138.54, the high of the day was set at the all time high of $US139.12.

There are many fools trading in the worldwide markets. Trading stocks, forex or commodities anyone can make these dumb trading mistakes. But to be a highly successful trader you must admit to your mistakes and act to fix your previous follies.

Trade Without a Plan

What the Turtle Trader trading book does is question the age old debate between nature versus nurture. Do genetics and people’s innate qualities predetermine someone’s success in the markets? Or is it someone’s personal experiences from learning, interaction with peers and direct personal practice with trading the markets determine success?

I was asked recently about what they should do when you are trading and come up with a major loser of a trade. A major losing trade is a trade which you just let go to run its course. It is no longer part of your trading portfolio but has migrated into your investment portfolio by default. Instead of cutting your losses short as every trader should do, by calculating the exact stop loss level to exit at, you held on with hopes that the price will reverse and start heading the direction you wanted it to go to.

Like many of those who are engaged in this kind of trading business, I strongly believe that we are presently in the super cycle of the global commodities as we generally see the commodity prices upward trend that is expected to remain the same way for at least 10 years. This is important to keep in mind before we can really examine the different factors that influence the trends of the global commodities. While we may corrections that are only short-term, the substantial growth in the trend is still ahead of us.

This will be a “live book review” of the “Complete Turtletrader” by Michael Covel. What's with the sideway's book cover? Well, this book will definitely change your perspective! I will be jotting my thoughts and impressions of the book as I read through the chapters of the book and highlight some notes for my (and your) benefit.

So how do you implement your trading money management with two percent risk management strategy? In this post we will be examining two percent trading mechanics, how you use the rule and some clarifications about the rule. We will extend the rule to cover sensible stop loss levels.

Need to brush up on your stock investing skills? Are you moving some of your trading profits into an investment portfolio? Well here are the top ten best stock investment books ever written. Another ten great books to add to your library and are all definitely a must read.

Two percent money management is very important especially when you are daytrading and actively trading the markets. Lets take a look at a tale of two traders with this table. You must apply the two percent rule with due diligence: that’s two percent or die. Examine the case study table below: