Here’s another little short piece of advice that can save you some pain: Don’t use market orders. Instead use a limit order across the bid-ask gap. Under normal conditions you will get exactly the same result, but in abnormal circumstances you can avoid big trouble. Continue reading
I’ve been on a bit of a economics kick lately, but it’s time to get back to the real purpose of this blog, which is teaching profitable trading. A big part of that is passing on “lessons learned” – mistakes which cost me money and which you hopefully can avoid thanks to me highlighting them. One of those mistakes resulted from what I’ve termed “phasing”. Continue reading
I used the terms risk-on and risk-off in a previous post, and someone was nice enough to comment that they had no idea what I was talking about. That’s always the downside of using trader jargon, but it’s pretty hard to talk about trading without it so the best alternative is simply for people to point out when I’m being unclear.
Risk-on and risk-off are really a way of describing very broad, medium term market movements. Continue reading