The Power Of Compounding
In this article, we are going to discuss the Power Of Compounding. Causes of Failure Novice traders enter the Forex markets with the hope to become independent and wealthy. And they may be right. So why 95% of traders fail? The three main causes: 1.- No trading plan 2.- Psychological weaknesses and biases 3.- Too…
Risk Reward and Profitability
Abstract: On Risk, Reward, and Profitability, we show that risk and reward are critical concepts in the pursuit of profitability, whose importance is even higher than the percentage of winners since it shifts the focus of a system from entries to exits and trade management. The Nature of Risk and Opportunity Timing the market versus…
Designing a Trading System- III
Designing a Trading System- III deals with the definition of the parts needed to design a sound trading system. Defining the parts of the problem To finally produce a good trading system we need to identify, first, the components of the problem, and find the best solutions available for each of them. There are many…
Designing a Trading System- II
On Designing a Trading System-II, we will deal with some basic facts to raise awareness about the realities of the trading business. That information is necessary to avoid the typical psychological flaws most (unsuccessful) trader have. Key Facts Economic information translates gradually to price changes. Future events aren’t instantly discounted on price. That is the reason…
Designing a Trading System-I
Designing a Trading System-I is the first of a series of articles trying to deal with the difficult task of developing a trading system. Trade and money Trade is a concept that began with the advent of the Homo Sapiens Sapiens, some 20,000 years ago. People, back then, traded their spare hunting pieces for new arrows, spears,…