Tag Archives: trading basics

Should You Swing Trade or Day Trade? The Pros and Cons of Each

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day trade or swing trade the pros and cons of each
One of the most common questions I get asked is whether to focus more on day trading or swing trading, or focus on both? The answer depends on your experience level, your goals, your preferences, your time availability, and in some cases your capital. Swing trading is taking trades that last more than a day; typically several days to several weeks (even months). Day trading is taking at least one, but usually multiple trades each…

How to Make a Trade Log (Downloadable Sample)

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sample trade log excel
A trade log is a valuable tool for every trader. I can be used to improve discipline and performance as well as find strengths and weakness within our trading. Learn why to use a trade log as well as the basics for constructing your own. Also provided is a downloadable trade log you can use or alter to suit your trading style. Why Use a Trade Log If you don’t track everything you do, and…

Use Your Trade Log to Help You Stick to Your Trading Plan

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A trading plan is a written out document that lays out exactly how we will trade. Most new traders don’t bother writing a plan down. Instead, they have a bunch of strategies in their head and then try to apply whatever one fits a situation. Usually, this doesn’t work out so well because with so many strategies floating around in our heads we are likely to always find trades! Yet just because we can find…

How to FULLY Plan Your Trades (and Get Better at Following a Strategy)

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how to fully plan trades
In order to fully plan a trade, the trader should be aware of what they will do if the price rises quickly or slowly, doesn’t move, or falls quickly or slowly. Without considering all these possibilities, a trader is more likely to make mistakes or have a harder time sticking to their strategies.  Traders start out by learning a strategy and then setting off to try it out. Possibly it is a simple strategy, where…

Best Trading and Investing Books For Professional and Personal Development

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best trading and investing books
Below are some of the books that have had the greatest impact on my trading life and personal life. A few are specifically focused on trading, while others are focused on the mental qualities that will indirectly affect/help your trading and investing. The longer I trade, and the longer I spend on this planet, the more everything seems interconnected. I mean that in a logical sense; the practices and activities I do outside of trading…

Learn How to Make a Trading Plan

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trading plan
Without a trading plan, we’re just gambling in the markets. Learn how to make a trading plan, and put the edge in your favor. Before taking on an endeavor, it is wise to have a plan. A plan is critical, and when trading there are multiple reasons for having one. One of the best reasons for having a trading plan is it requires you to educate yourself about the market, acquiring knowledge on trading basics…

Probabilities in Trading – Focus On The Relevant Factors

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the relevant factors in trading
To trade well, we can’t get bogged down in things that don’t matter. Instead, we must focus on the relevant factors. Some statistical quizzes can help clarify this for us. Then, an understanding of how markets move can provide us with the relevant factors to focus on. In Probabilities in Trading – How Your Mind Is Tricking You, I introduced some errors people make in regards to probabilities–namely, availability bias and assuming increased probabilities if…

Trading Tips from Legendary Millionaire Trader Jesse Livermore

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millionaire traders
Lessons on what to do, and what not to do, from a trader that accumulated more than $100 million dollars in profit trading his own account…and then lost most of it. It’s 1929, and over the last 8 years the Dow average has seen an epic rise. Everyone wants to own stocks, and loose leverage requirements allow it. Stock loans reach $8.5 billion; more money than was in U.S. circulation at the time. In September…

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