Trading University Daily

When I look at a Daily Chart of EURUSD the first thing that pops into my head is DISTRIBUTION. Any time a market goes sideways, it is either distributing before a change of direction, or it’s consolidating before a resumption of the current trend.  Either behavior is marked by wide price swings in both directions [...]

One thing that I find more amusing than annoying now is trying to be on the screen at the “best” time to day trade. Previously the decision on what hours to trade were based entirely on volume. The more volume, the better the day-trading, was how our thinking went. It wasn’t all that long ago, [...]

When you sit down to trade you need to make sure you are asking yourself the right quiestions.  Instead of asking “What should I trade today?” you need to be asking “Are there set-ups and signals which fit my parameters in the markets I trade?”  Before focusing in on any individual market, you should identify the [...]

One aspect that back-testing doesn’t account for is what’s called “asymmetric loss aversion” which is another way of saying that losing hurts more than winning feels good. This often has an adverse affect on beginning traders following a losing trade, or multiple losing trades, because for most people losing is stressful and it’s harder to maintain focus under [...]

Reprinted from June 6th, 2008 One of the most common mistakes non-professionals make in trading is they believe market movement is pre-determined. No matter how easy it looks at times, with the technicals mirroring the fundamentals — as happened this morning w/ the non-farm payroll and the technical sell signal immediately following in the US [...]

The likelihood of a short covering rally increased today from a  technical perspective with the beaten down Greenback jumping 50 pips, after again finding support at the approx 75.00 level.  Given the currency market’s penchant for counter-trending moves ahead of  the weekend, we might be looking at still further upside going into Friday’s session.    Hedging pressure is  also [...]