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Grant and Napoleon had an ability that separated them from other generals, the ability to manoeuvre troops and supplies to their most effective placements under rapidly changing circumstances. Traders should learn how to manage their funds, rework stop placements, and change their position size...

I suppose I made that post at least in part because I have the problem of overconfidence. So in a way I was curious to see what anyone else would say. Nevertheless, I have had a few more thoughts about overconfidence, which I will post here now. When I am overconfident, I falsely believe...

How should a trader deal with “overconfidence?” Maybe a better question about confidence--trading and otherwise--is not why people are overconfident to begin with, but why they stay overconfident. You see, the problem with overconfidence is not the innate bias toward optimism that most...

Hey Joe! I’m an intermediate-term trader in the full S&P 500. I’m trying to fill out my trading method so that it is a complete technical trading approach. Do you have any thoughts on this? A complete trading approach should equate about two or three weekly intermediate tops and bottoms...

This past week I received the following email: Hey Joe! I’m ready to give up. When I found out that statistically most traders are losers, I wonder what chance I have of ever making it. You have every chance of making it. You are not everyone else, you are you. Statistics and those...

You are correct, I do have more to offer, and a lot of it's free, but I am not allowed to even mention my website in this forum.

The problem with many traders is, they only have half a plan, the easy half. They know how much profit they're willing to take, but they don't have the foggiest idea how much they're willing to lose. They're like a deer in the headlights, they just freeze and wait to get run over. Their plan for...

There are only two kinds of day traders, the quick and the dead. Day trading is like guerrilla warfare. The quick seize opportunities immediately, move their stops to break even as soon as possible and capture as much money as is possible in the shortest amount of time. The dead are never quite...

Is it true that selling a market when it is limit up is usually a great strategy? This brilliant strategy stems from the idea that selling a market at limit up, may result in the trader gaining two limit moves in his favor while theoretically not losing any money the day of entry. I...

traderswild: As you probably know I cannot make a direct recommendation for my own website or advertise for any other website. It's against the rules of the forum. However, if you will make the effort to contact me directly, I can give you information on where to legitimately get a bonus of...

A few days ago I received the following question: “I need help finding a forex broker. I notice that spreads among many of them are pretty much the same. So how do I choose?” The spread is definitely not the most important factor in choosing a broker when you are choosing among those...

Thank you, The parable about the people with the spoons exactly captures what I was trying to say.

There are two sure ways to go broke trading a market: picking tops and bottoms based on valuations, and taking trades based solely on indicator readings. When did the Japanese market become overvalued when the Price divided by the Earnings ratio was 30, 40, 50, 60, 70, or 80 to 1? When did...

It didn’t in the past because volume was a day late and a dollar short, when trading the daily charts. But these days, where volume is live, it does count. Here’s a simple idea that works well for indexes. Most people ignore volume as an indicator. I think it’s overlooked and I will...

It would be nice if you told me to which market you are referring. However, assuming you mean the stock market: Yes it is very nervous at this time. I'm looking at the E-mini S&P 500 and it is flipping between open high-close low and open-low and close high. It has been in congestion since July...

A market may be nervous when it goes into consolidation. It may be nervous when you see lots of dojis and flip-flopping – opening high one day and closing low, and then opening low and closing high the next day. A market may be nervous when it is backing and filling – opening on gaps and...

Try this idea: take the three-day average daily range and find the absolute difference from the ten-day average range. Project tomorrow's range equal to the three-day average range plus or minus the absolute value from the ten-day average range. Define the trend, assume the open to be within 20%...

Bastiat said it better than I did. My hat's off to you Bastiat and I apologize for not making more clear what I was trying to say. Just so you guys know, I day trade live in front of audiences in Italy, Germany, Czech, Brazil, Uruguay, South Africa, and Spain. I simply don't have the time...

RTS: Thanks for the link to the article. It is an excellent article and I agree--people should read it. There is a lot of truth there. JR

All but one of my books (Trading by the Book) has been updated for electronic trading and today’s markets. JR