Posts

What should a forex trading system comprise?

Image
Your trading should be governed by a system of rules to ensure that your participation in the markets is objective and not based on your emotions. What should a forex trading system comprise? A complete forex trading system should encompass all eventualities you may be faced with so that nothing needs to be decided during the trade. Therefore, a forex trading system should comprise rules governing: What currencies to trade Entry point Exit point Initial stop loss Trailing stop loss Take profit point How many contracts to trade with Contrary to popular belief, the entry criteria is probably the least most important parameter of a forex trading system. It is the money management component that is the most important aspect of any system. Any forex trading system should be thoroughly tested using historical price data. There are a number of different software packages available which allow users to program in their particular system and backtest it automatically. This testing can then be
Read more

Trading Movie Recommendation: Margin Call

Image
  Inside views from the world of brokers and bankers, without revealing much about them. Men staring at screens. Men who talk about things like the "historical volatility index." Men who loosen their ties when things get serious. And who, when things get really serious, put their feet up on their desks and listen to Maria Callas. Margin Call by JC Chandor is set almost entirely in the offices of an investment bank in Manhattan and depicts the final hours before the great financial crisis of 2008 erupted. It's a tough task to translate such a complicated mishmash of things like hedge funds, credit ratings, mortgage lending and low-interest-rate policies into a movie.  Margin Call attempts to do so by taking a purely inside perspective: This is the story of the bankers; the traders in the open-plan offices, their bosses and the very big bosses who are flown in by helicopter when there is a fire. The film doesn't take a look at the consequences of these actions, at the
Read more

How I stay in control of my trading

We can do our best and still sometimes not get the result we wanted. It's no different in trading. We can make preparations, make analyses and the market still shows us that we have misjudged it. Today I am convinced that a new expectation management is immensely important to achieve better trading results. The problem is so often that we want to anticipate or anticipate something in advance, which we cannot influence at all. This applies universally to other areas of life as well. If I want to prepare a nice evening for my girlfriend, tidy up the apartment, put fresh flowers on the table and cook her favorite meal, then these are good preconditions for her to be happy and later throw her arms around my neck as the best friend in the world. But if she had an unpleasant customer on the phone just before leaving the office, or the boss let off another quick frustration, or she got stuck in traffic, then the beautiful evening - despite all the preparation - may fall through. And yet,
Read more