In trading, business, and life… it pays to understand some of the mental software that may be running in the operating system of your mind. See, one of the reasons it is so difficult to stick to one project or strategy is because the human mind is not wired to think in long term probabilities. We
Money & Probability
Probability is simply the likeliness of a random event occurring. In order to fully understand probability models in trading, it is important that you know how to calculate the basic probability of a random event. For this example, we will calculate the probability of flipping a head in a single coin toss. Probability of event =
The Collective Market Mind
You’ve probably heard that to make money in the financial markets, you need to do the opposite of what everyone else is doing. But unless someone has explained to you (in depth) what that actually means, you might feel a little uncertain about how to actually put this wisdom into action. In this blog post, my
The Golden Rule in Forex Risk Management
In speculative forex trading, it is wise to limit your risk on each trade to 1% of your total account size. Many new traders think this is preposterous. “1% of my account is only $10, how can I possibly make any money”, they say. While such a low exposure to risk might lack the excitement
How To Practice Technical Analysis
When you get some free time and want to improve your understanding of price action and currency behavior… Open a chart, zoom right out, draw in 3 or 4 of the best support/resistance lines you can find, and study them! It’s mind-blowing to see how often these lines are hit by the market over and