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I already have significant long-term investments - the house and my occupational pension. Both are supported by a healthy UK economy. There is very little diversity here so I do not need to pile my cash into basically the same scheme, that's why I am short-term trading.

Standardise your capital risk to a percentage of your account. So let's say its x%. Then every trade you take must meet your trade criteria and every trade must carry a risk of x%. If you wouldn't risk x% its a bad trade. x% is both your maximum and minimum risk. But never change the value of x.

What they do and what they should do are different things. I hear many day-traders get into difficulties if they don't acknowledge daily and weekly s/r.

Maybe an efficient use of capital would be deploy your maximum risk per trade when you confirm your high probability set-up? So if your threshold for opening a long-side trade is a 70% probability of price rising, you risk 100% of your normal risk (e.g. 2% of your account capital). If the trade...

Lot of traders would say daily trumps intra-day, weekly trumps daily, monthly trumps weekly, though not many actually shape their trades off monthlies. But I've never heard of a 5 month time-frame for s/r - where does this come from?

I like the series of threads started by Troy Bombardia because I do believe there are constants of behaviour in the market which, although they are never going to be 100% dependable, we must agree on. So much of trader forum posts are about what we disagree on. All this philosophical...

Yes, the EUR is a currency with a weak economic base, getting weaker if trade with the UK loses out to increased "friction". But the EUR makes up I believe over 50% of the USD index, so is EUR/USD really the best way to short the EUR?

You agree that the tree is being shaken, yet you don't think Trump is the lead shaker? I am pretty sure he is only interested in talking about trade wars because it pleases his voter support, but nothing will come of it in the end, and the Dow will resume its upward trajectory. So he and his...

Short-term trading IS diversification.

I think the truth of the market is that Trump has made bearish noises and the market has gone down. But please share your analysis if different.

I agree there is bound to be ups and downs and pain and gain. I am a trader, so please take it I am convinced that just one of the wrong ways to make money is to put it into stocks and forget them. Another (even more) wrong way is to buy a load of stocks and then sell them when the market is...

But you surely don't deny the President is responsible for how far and how fast the Dow is down? Hell, I don't think he would deny that himself. It doesn't really bother me, I don't own any US stocks and I don't have a US pension plan. I'm waiting for the market to either crash or climb, same...

Of course, a fall in the stock market is a great opportunity - for those who've got cash. https://en.wikipedia.org/wiki/List_of_Presidents_of_the_United_States_by_net_worth

What a farce. Just glad I didn't pay for a ticket to go all the way to Russia to watch this crap.

There is no reason to expect that the broader index would out-perform the senior index based on this one factor only, there are many factors that influence the holdings of stocks, and these potentially have far more influence. Nevertheless, the continual re-constitution of stock indices gives...

This is correct. In fact I closed my multiple US stock index longs in late January. But this was manually done, based on worsening TA that suggested the uptrend was ending, not on stop-losses being hit. I do take the risk of leaving money on the table, but I don't mind that. The thing I do mind...

If there's no risk there's no market.

Not all indices are calculated in the same way.

A man after my own heart.

But the underlying stocks are not a constant set. If the index comprised the same 30 or 100 or 500 or 2000 companies throughout history, then yes you would be right, there would be no inherent upward buoyancy to the index's numerical value. But member stocks with declining share price and market...