How to escape the Trader’s ‘cycle-trap’

How to escape the Trader’s ‘cycle-trap’

Our lives are ruled by cycles. The annual cycle of the Earth circling around the Sun… The cycle of the Moon… The monthly cycle of your salary landing in your bank – hooray! And then watching it go whizzing out again as the cycle of direct debits and...
Why I’ll never trust trading bots

Why I’ll never trust trading bots

A question arrives from a TN reader: ‘Aren’t you contradicting yourself when you’re dissing off the peg “forex systems” at the very same time you’re promoting the use of them?’ It’s a fair point and one that probably...
The ‘Hound of Hounslow’ is back

The ‘Hound of Hounslow’ is back

Remember Nav Sarao… The otherwise unassuming 36 year old trader operating from his parent’s house in the London suburbs who was scooped up and arrested back in 2015? They blamed him for single-handedly causing the 2010 ‘flash crash’ in the US...
Empty-mind trading

Empty-mind trading

It’s easy to ‘marry’ an opinion. The trouble is it blinkers you to any other possibility but the one you foresee happening. With trading, you might analyse the markets yourself or you might invest in the outlook of a market commentator. And at a...
Trading by mail?

Trading by mail?

Did you know Liverpool had one of the first futures exchanges in the world? You probably knew that import and export was a big part of the city’s success in the nineteenth century. And yes, sadly, the slave trade played a big part too. But I had no idea of the history...
How to build a ‘hot-rod’ trading system

How to build a ‘hot-rod’ trading system

Trading is a very personal endeavour. What suits one person perfectly might torment and irritate another because it doesn’t fit their trading ‘personality’. But when you can chop bits from one system and slot them straight into another there’s...
7 steps to winning the internal game of trading

7 steps to winning the internal game of trading

I was flicking through an old trading journal of mine the other day. It’s a bit tattered around the edges but those pages contain absolute pearls of wisdom. Now don’t worry, I’m not blowing my own trumpet here. These notes were from when I was still...
The 7 drivers of effective trading

The 7 drivers of effective trading

Our natural response to risk and uncertainty is excellent at keeping you away from harm in many real-world situations. It is what has kept the human race alive for millennia. But it’s not so good when it comes to working with risk as a tool to make money, like...
How to get faster results from your trades

How to get faster results from your trades

An email arrives from a particularly peeved trader. Two sentences he wrote say it all… (1)’ It’s almost magical the way I can see several promising trades but choose only to trade the two that stop me out, while the others usually go on to...
How to kill a trading account in 5 easy steps

How to kill a trading account in 5 easy steps

Autumn 2006. It was a Friday. Rumours were flying… there were big stop orders sitting 32 ticks below the current T-Bond price and the big players were going to go after them. All I had to do was jump in and get involved too. It made sense on the chart and I...
‘Spreadsheet Millions’ method proven to fail

‘Spreadsheet Millions’ method proven to fail

Have you ever done the infamous ‘Spreadsheet Millionaire’ exercise? It’s where you layout a foolproof master plan that proves just how quickly you’re going to trade your way to a million. All by averaging ‘just’ a 2% daily return. Because how hard can it be?...
How to follow market action in ‘High Definition’

How to follow market action in ‘High Definition’

You might run candlesticks as your day-to-day default chart, but when you’re doing your bigger-picture analysis you might look at line charts and bar charts too. They can all help bring additional bits and pieces to your attention: patterns or price features you...
Why I like my charts naked

Why I like my charts naked

You might know I’m not a massive fan of technical indicators… (I’m talking about things like Stochastic Indicators, MACD, RSI and all those other exotic sounding tools.) If you’ve been following my stuff for a while you’ve probably...
5 reckless ways to ruin your trades

5 reckless ways to ruin your trades

Ever feel you’re not quite in control of your trading actions? Do greed and fear drive your decisions rather than a proven trading plan? Let me tell you exactly what signs to look for. And then I’ll tell you what to do about it. 5 ways reckless ways to ruin your...
The ‘Big Cat’ way to trade

The ‘Big Cat’ way to trade

You know, there’s a lot you can achieve by observing the natural world. And I’m not sure if I’ve been overdoing the BBC4 documentaries recently but it’s really been on my mind. I watched an engineering firm in Africa put a super-efficient...
How to beat FOMO

How to beat FOMO

A question arrives from Jin: “I have no problem identifying high probability trades and opening them. My problem is FOMO* on a big runner. So I end up getting stopped out at evens or a small loss after giving 20,30,40 points or so back. Even when I recognise I...
The problem with trader’s brains

The problem with trader’s brains

There are LOTS of new traders in the markets at the moment. It’s a knock-on effect of people working from home or being furloughed from their jobs. So I’ve been nosing around some online trading communities. I’ve been trying to get a feel for what...
The secret of trading ‘stutter swings’

The secret of trading ‘stutter swings’

In an ideal world the market moves nice and smooth. It sets off strong in one direction (up or down, we’re not fussy) and we wait for a pause. We look for a little pullback. And then we enter the trade. This is the Continuation signal we’ve been examining...
Getting into the swing (Marc Rivalland-style)

Getting into the swing (Marc Rivalland-style)

Welcome to the Traders Nest book club! If you missed last week’s email we’re working through a batch of trading books I’ve been asked to review. We put the titles out to vote and Swing Trading by Marc Rivalland won by a nose. So this is the first one...
How to get back into your groove after lockdown

How to get back into your groove after lockdown

Here’s what to do when coming back to trading after a break… The same principles apply whether it’s an extended weekend, or an enforced ‘trading vacation,’ like you may have had if you’ve been avoiding recent market volatility. The thing...
Last night’s crude joke…

Last night’s crude joke…

I have never seen anything like it in my life… In fact, I don’t think anyone else can claim to have seen it either! Last night, as the May 2020 Crude Oil Futures contract approached expiry, the price went NEGATIVE for the first time ever. At tea time here in the UK...