Trading University Daily

Many people learning to trade get in trouble because they have the mistaken impression that they have to trade every day. The truth is you should not trade unless the trade set-up you are considering is outlined ahead of time in your trading plan and you are comfortable from both a risk/reward, and timing standpoint. [...]

In a conversation with a fellow trader I was asked, “Don’t you worry about being wrong when you’re pointing out trades in front of a room full of people?” Nobody likes to be wrong, especially in front of all your friends and clients. I thought about this for a moment, because while I fear losing money [...]

Even on the lighter volume of the U.S. afternoon session USDJPY failed to bounce off the historic 80.00 level, which likely points to still lower prices to come.  Given the size of the rally in the Japanese currency over the past several years it isn’t hard to imagine the move culminating with a rather large [...]

There are definitely times in trading where you need to know not to trade. Generally those times are when the majors are showing conflicting trends, such as today where the daily trend was up for EURUSD yet down for AUDUSD, and markets become tangled up on the intraday time frames. Currencies tend to give the [...]

It’s a fascinating game playing out in USDJPY now, with the big question: at what point will speculators get margined out of their long positions? What price point would it take on the downside to tip 50.001% of the specs short positions onto a margin call? The battle lines between the Bank of Japan and speculators is [...]

The Euro continued last Friday’s recovery rally by challenging the 140 level, putting itself into a position to re-test the 2010 highs at 142.80. A strong yen lent stability to the majors as the Bank of Japan’s actions in the face of the horrible situation there continues to remind traders that as bad as the [...]