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Trading and risk go together. Short-term trading denies the trader the strategy of minimizing risk by holding a position over a longer time period. Short-term traders must learn to use momentum and volatility. Volatility can force short-term traders to become scalpers. I know; often I am one of...

Thanks for all the great comments. I will pass them on. Jack asked if the trader will be posting here. Probably not, which is why I sent the post myself. The question actually arrived in Portuguese, which our in house expert translated for us. We get a lot of questions in foreign languages...

This question was sent to me from one of our students: Hey Joe! My greatest fear in the market is that of missing a move. I just can’t stand the thought of missing “the big one.” The best way to handle that kind of fear is walk away from the situation. Get up, and walk away from the...

This question was sent to me from one of our students: “Hey Joe! Sometimes I find myself hesitating about taking a trade. Could it be I have analysis paralysis?” If you’re going to trade, you need to be able to take decisive action. Carrying out your trading plan often requires that...

This question was sent to me from one of our students: “Hey Joe! I sometimes feel guilty about my trading. Is trading a sin?” No, trading is not a sin, but trading without knowing what you are doing can lead to a lot of problems. Trading in and of itself is not considered as gambling...

Absolutely! YES!! When I first began to write in 1988, the only think I had going for me was the discipline I had learned during the many years of trading preceding it. I began writing for purposes of leaving a legacy to my kids. I had come home from a near-death experience and 3 months in a...

This question was sent to me from one of our students: “Hey Joe! I know you must get tired of telling us to be disciplined, but discipline seems to be my major problem and from others I’ve contacted it is their major problem as well. So please keep telling us about it and maybe one of these...

The Ross Hook has always existed. But I was the first to give it a name and an indication of what it means and a way to trade it. JR

This question was sent to me from one of our students: "Hey Joe! Would you agree with the following statement? “Of paramount importance to the trader, though, is fear. I am convinced that it is absolutely necessary to 'run scared.' Only an exaggerated emotion can generate the concentration...

This question was sent to me from one of our students: “Hey Joe! Is there a way to detect short term trend reversals?” One sign of a short term trend reversal is: Contraction of the weekly range by 50%, and the highs of successive daily price bars exceeding previous price bar highs by...

This question was sent to me from one of our students: “Hey Joe! Is there any time that you feel there is a valid use for oscillators and/or divergence?” Yes, there is a time when such things may prove to be of value. The opposite of trend following trading methods involves trading...

This question was sent to me from one of our students: "Hey Joe! What market indicators do you feel are the best to use: Moving Average, RSI, Bollinger, etc....? I realize there are many other considerations." Oh boy! There was a time I used indicators as my main tool for entry signals...

<b><i>This question was sent to me from one of our students: </i></b><color=blue>"Hey Joe! My problem is impatience. I may have the worst case of it of anyone I know. What can I do?"</color> In trading, timing is everything. If you are going to be a winning trader you have to be patient. You...

<b><i>This question was sent to me from one of our students:</b></i><color=blue> "Hey Joe! Do you have any statistics that help predict tomorrow’s trading range?"</color> I certainly do, but please check me out on these numbers because I haven’t verified them in a long time. Here’s...

This question was sent to me from one of our students: Hey Joe! I was really a successful trader during the late 1990s. I now can’t trade my way out of a paper bag. What happened? Bull markets are not driven by fear and greed, as some would have you think. Rather, they are driven by...

Hey Joe! I’m struggling. My home life is not conducive to trading, and I’m not sure whether to continue. I’m not even sure of which things are important. Almost anyone who wants to succeed needs to ask themselves certain questions before beginning to trade. Essentially, it is a...

Hey Joe! Isn’t it better to get into a trade when you know everyone else is thinking the same way as you? Isn’t there safety in numbers? There's safety in numbers alright. Have you ever looked at a herd of zebra on a plain in Africa? They stay together in a big group because if a lion is...

Hey Joe! It seems that the more I know, the less I know, and the more I become confused. Why is this? People have the tendency to believe that the accuracy of their forecasts increases with more information. This is the illusion of knowledge - that more information increases your knowledge...

Hey Joe! What are your thoughts about trading as partners? Do you have any thoughts about sharing a trading office with other guys? Trading is a stressful business. When you are in a trade, your money is at risk, and you repeatedly face the possibility of losing substantial amounts of...

Consider the following: As a trader you are in a business. Your strongest opponent has plenty of capital. He follows a program and he does it without emotion. He is totally aware of the fact that no one knows where the next tick will fall. Whereas he usually has good insights regarding the major...