TheRiskBlog

Today’s post deals with media phenomenons, that for us as traders can be very important.
As we know markets are made by people who sell and buy. And most of these people read newspapers or news related websites. So if we are able to discover what interests them the most, it helps us creating a better opinion about the markets.

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.

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

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.

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

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.

When people start out as traders they always have one goal. And that is to make money - preferably lots of it. People have different ideas but most often we hear something along the line: “..i want to be able to make a living trading…”, and “…i have this amount x right now but at the end of the year i would like to have doubled it…”.

Now this is all fine but how do you reach such a lofty goal? Let´s have a look at a few ways:

Merry Christmas to everybody and always remember to take care of the risk involved in trading in 2010.