Category Archives: Trading

My Thoughts On The Sterling Flash-Crash

We’re all just one trade away from humility. – Marvin to Bud Fox in Wall Street. Last night I’d just finished watching an Alfred Hitchcock movie (Frenzy (1972) – recommend it) when I checked my Twitter feed.  It was in a frenzy (pun intended) about GBP – capital letters tweets and charts that indicated a… Read More »

A Lesson From The Latest News On Paul Tudor Jones

Bloomberg just reported that Tudor Investment Corp., the hedge fund started by legendary Paul Tudor Jones in 1980 is laying off 15% of its workforce, amid lackluster performance and client withdrawals. But if with all I had I still lost, what chance does the green outsider have of winning, or, rather, of cashing in? –… Read More »

Drawdowns – A Reality That Traders And Investors Face

False expectations lead to a great part of the emotional and financial suffering that traders and investors encounter in the markets. Members of the first group are preponderantly misled by alleged professional traders (who can’t substantiate most of their claims and have no verified track-records) while in the case of investors, advisors with conflicts of… Read More »

Listen To The Market, Not The Talking Heads

In late January 2016, Dennis Gartman, publisher of the apparently widely read “Gartman Letter,” a daily markets newsletter, and an omnipresent talking head on CNBC affirmed: we won’t see crude oil above $44 again in my lifetime. Well, 5 months later, and with oil touching $50, Mr. Gartman is still very much alive and probably… Read More »

The Mirage of Set and Forget Trading Systems

What would you think if someone came up to you and said: buy my $300 course (only today you can get it for $275 ) and spend just 10 minutes a day and you’ll become a top lawyer or doctor. All sane people will just tell this guy to get lost. But replace  lawyer with… Read More »

Losses – The Cost Of Doing Business

How one approaches trading will ultimately determine if he’s going to be successful at it or not. Some people think trading is a sort of salaried position – they run back-tests or use performance simulation calculators, torturing the data until they get the monthly/yearly figures desired. So they ‘sign the contract’ and start trading, full… Read More »

When Trade Intervention Costs You – An Example

Do you always wait for your trades to hit the stop loss or close them early if they don’t act right ? That’s one dilemma traders face and unfortunately there’s no one size fits all formula available. Some snake-oil salesmen and pretend traders would want you to believe that if a trade doesn’t work out… Read More »

How A Trader Self-destructs In 4 Minutes

This is one of the traders at Darwinex I had my eyes on ever since he listed his DARWIN and I thus became aware of him. In a sea of <$500 accounts with EAs toiling on them, here was this guy with an account that I estimated to be around £10k, trading most probably manually… Read More »

Past Performance Is Not Necessarily Indicative Of Future Results

Since I published Following Forex Trading Signals Is Dangerous To Your Wealth in November, I received a fair amount of criticism/abuse sparked by my comments on  SPM Capital Management. While I don’t expect too many of those people to reconsider their thinking, I do hope some will start looking beyond the surface when discussing performance… Read More »

Debunking Fantasy World Performance Simulations

Just stumbled upon an article today which left me wondering: was it written by a trader who was under the influence or by an internet marketer ? Some people falsely believe that only flashy sites with photos/videos of expensive cars and wads of cash are the mark of an internet marketer. But it’s long been… Read More »