Overtrading is one of the most overlooked mistakes you can make while trading. As a trader you want to make money any minute the market is open, this is understandable, but it doesn`t mean that you need to trade every opportunity that comes across your screen. Trade the most profitable ones and forget the rest. Here are 5 tips on how to spot and avoid overtrading.
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Days like these are most interesting as far as risk management goes. Most of the times stock prices follow a chaotic pattern. Forecasting them is not easy if at all impossible but sometimes subtil changes in the surroundings make things forcastable. This happens when Continue reading… » Bruce Watson of the Daily Finance Blog posted the article: Food Shortages Coming? Famed Investor Jim Rogers Thinks So The Article deals mostly with Jim Rogers opinion about the rise of commodity Futures because of an upcoming shortage in Food. But that´s not the point that caught my eye. What can I say about the book? The reason is very simple. Continue reading… » A While ago Brett Steenbarger posted a quite interesting questionaire at his Blog that helps you to define your curent attitude. There is always a tendency to make mistakes, especially while trading or investing. They are just not avoidable. We need to learn that we make them and we need to learn how to minimize negative outcome from those mistakes. You can start by Continue reading… » It needs time, till you can make proper market decisions. You need a good portion of experience for this and you have to know what is going on in the markets. But the problem is, that even if you are theoretically right with your interpretation of market events, you still have to remain flexible. Every trader who wants to be successful needs a set of rules he acts on – a system. Most build their system over years with growing experience, others buy one. To discover what works and what doesn’t most traders test different systems during their trading career, till they find or develop one that fits them and brings the consistent success they searched for. But it is not easy to test a system, because there is one problematic factor involved in it – the trader himself. There is quite a bit math involved with risk management. To be on the safe side we have to cope with ratios, P&L equations, risk engines, no trade zones, beta, volatility and so on. Most of this stuff is straight forward though and can be done with only a little knowledge of the formulas behind it. But here is an article about something that has not yet found its way into risk management. Continue reading… » The complete team of TheRiskBlog sends all the Best for the New Year, health, happiness and success for you and your family. |
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