Tag Archives: trading basics

Why Most Traders Lose Money and Why the Market Requires It

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bitcoin price over time
Learn why most traders lose money, and why that will always be the case. It’s a systematic requirement of the market. While individuals can break from the herd and make above-average returns, the vast majority of people will continue to buy and sell at the wrong times. Learn from the mistakes of the herd, so you can step into the small group of consistently successful traders.  This article is broken down in sections: How trends…

What’s the Day Trading Success Rate? The Thorough Answer

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day trading success rate
Considering day trading, and wondering what the day trading success rate is? Here’s the thorough answer. Not general or contrived statistics, but rather the success (and failure) rates I witnessed while working at day trading firms from 2005 to 2010. I’ve also conversed with several other trading firm owners/managers on their success rates between 2005 and 2015. Numbers varied slightly but were in line with the day trading success rates I discuss below. In total,…

6 Trading Articles To Improve Your Risk Management

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improve risk management
Here are 6 trading articles on how to improve risk management. Risk management takes many forms, including position size, stop losses, loss caps, exposure to gaps, controlling mental state, and following a strategy based on tested method. Learn about all these risk management tactics below. Many traders utilize a few of these risk management tactics, but if not using all of them (when applicable) a trader may be taking on more risk than they think.…

Day Traders – How and Why to Use a Daily Stop Loss

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daily stop loss for day traders
Learn how to control daily risk while day trading, so that a single losing day is easily recouped by a winning day and won’t ruin your whole week or month. In addition to controlling risk on individual trades, nearly every professional day trader I know, including myself, also uses a daily stop loss. Just as a day trader shouldn’t let one single trade ruin their day (although this does occasionally happen), professionals also don’t want…

How to Bust Out of a Trading Losing Streak

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how to end a trading losing streak
There are good and bad ways to handle a trading losing streak. Here are some steps to take, and things you should know, so you can get back to profitable trading. Assuming a trader has a trading plan they follow and some experience, nothing rattles a trader more than a trading losing streak. For the sake of this article, a losing streak is a sustained drawdown in capital where loses occur trade after trade or…

Day Trading Basics: The Bid Ask Spread Explained

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Bid Ask Spread
If you’re beginning your trading journey, you may be unaware that a stock (forex pair, futures contract or option) actually has two prices at all times, and not just one. The two price are called the Bid and the Ask, and understanding the “bid ask spread” is crucial if you want to get into day trading. The Bid and Ask Price If you view a stock quote on a website, you’ll often see only one…

How Much Money Can I Make Swing Trading

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how much money swing traders make
Here are scenarios for how much money you can make as a swing trader, based on how often you trade, the risk/reward ratio of your trades, how often you win, and the capital you start with.  There is a massive range of incomes for swing traders. Most swing traders will still need to work another job to fund their lifestyle, but may be able to pull a secondary income out of  market each month. Then…

5 Beliefs You Must Accept to Improve Day Trading Performance

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beliefs to improve day trading performance
Fully accept and integrate these 5 beliefs to improve day trading performance and remove a lot of stress from your trading. Fail to implement these beliefs and trading will continue to be a stressful struggle. Even many professional traders will say that day trading is stressful and difficult. Day trading does take focus and discipline, but it doesn’t have to be stressful. Stress, at least in trading, is created by an internal conflict between what…

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