Before we build a trading system let’s set up a censorship system. The Impulse system will keep us out of trouble by showing when not to trade. As Jesse Livermore, one of the great speculators of the 20th century, said to an interviewer: “There’s a time to be long, a time to be short, and…
You’ve seen earlier in this article that each tick on a chart reflects a transaction between two persons: a buyer and a seller (in case of automatic trading one or both of them may have been a computer program). The buyer believes that the stock is undervalued and will go up. Had he thought otherwise,…
Our indicators should be simple and robust. Simple because they track only a few basic numbers: opening, high, low and closing prices, plus volume. It doesn’t pay to overcomplicate your analysis. Brian Monieson, a professional trader in Chicago, once said: “I have a PhD in mathematics, I specialized in cybernetics, but I was able to…
Every trader in the financial market wants to earn consistent profit as their second or main source of income but few of them only earn profit from it and rest losing their money. The big reason of losing money is indiscipline trading in the financial market. Through this article we recommend golden rules of…
Warren Buffett, perhaps the greatest living investor, says that whenever you buy a stock, you become a partner with a manic-depressive fellow he calls Mr. Market. That fellow runs up to you every day, offering to sell you his shares or to buy you out. Most of the time you should ignore him because he…
Computerized technical analysis is more objective than classical charting. When an indicator is up, it’s up, and when it’s down, it’s down. There’s no fiddling with the angle of a ruler. Technical analysis software contains a wealth of indicators, but you aren’t going to use all of them. Compare this to sitting down in a…
Remember this rule: “it is OK to make mistakes, but not OK to repeat them.” It reminds me of a Russian saying: “Don’t step on the same rake twice.” Many traders keep losing money, repeating the same mistakes.A habitual loser doesn’t remember what he did right and made money or what he did wrong and…
An intelligent scuba diver always keeps an eye on his air tank’s pressure gauge to make sure he has enough to return to the surface, with a safety margin. The money in your trading account is your air supply. Watch it, be economical in its use, and have a reserve.All beginners, no matter how bright,…
There is a pair that you can trade that my mentor made me to realize that you can actually make mon-ey out of this one pair. I’m not saying that you should only trade this pair alone but I do suggest that you add this pair to your pair list and I also suggest that…
The only thing that makes this strategy very powerful and able to change a person’s financial state is it’s ability to produce positive results on a consistent basis, consistency is what makes a successful trader , if you are able to grow your investment with small amounts on a daily basis , you’ve got power…