Mastering Volatility

Market volatility has tripled over the last few months, which poses technical and psychological challenges. In this video I point out 8 ways in which you can master volatility and make it work for you rather than against you. Increased volatility increases risk, so...

Setting Smart Stops

Intelligent risk management means using stops. If a trader constantly gets stopped out, however, he/she may develop an aversion to using stops. They blame the stop, but the problem is usually the fact that are not setting smart stops. It often starts with a sloppy...

Ride your Winning Trades

Do you find that you are often right about a trade direction, but that you get shaken out of a winning trade before the trade heads off in the direction you expected? In this volatile market, it can be difficult to ride your winning trades to capitalize on their full...

The Money Trap

We trade to make money, but most aspiring traders over-focus on the money, which inadvertently causes unnecessary losses. I call this vicious circle the Money Trap. The Money Trap is an automatic process, because we are wired to react to the risk of monetary gains and...

Trading Mindset and Volatility

Markets oscillate between periods of low and high volatility and this fluctuation can dramatically affect our trading mindset. Early this year (2015) the Average True Range in the index futures tripled from 2014 levels. When the waves get larger, trading becomes more...