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Use the best market tools for your trading!
Make sure your trading is perfect in every way, not just your skills but the tools you use for high-precision analysis of the market situation. It’s pretty obvious that if your information is coming from unreliable sources or lagging, you will lose money. You can’t afford to rely on incorrect data. That is why the market analysis software you use must be properly configured and prepared for specific tasks. How to set up the VolFix platform and make most of it? If this is your first time you are using Volfix, here are some tips: all program modules can be divided into 4 groups: “Charts” – all variations of displaying…
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Merely being unconventional in one’s approach improves one’s chances of success
Many of us traders have tried to find their own very best unique trading system hoping that it’s authentic enough to help us win most of the trades. When trying to find our “holy grail” we are thinking that other trader’s won’t be able to do as good as we can. However, only an understanding of underlying market drivers, or at least the chart patterns they produce, can provide any kind of edge. Whether that is ‘conventional’ or ‘unconventional’ is moot. TA provides a window into HOW price has behaved, but it doesn’t explain WHY, and to whatever extent it fails to measure either ‘fair value’ or current sentiment, its…
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Inverting the signals in a losing strategy must necessarily make it a winning one.
Any strategy that fails to exploit a real market inefficiency is effectively generating random signals. Inverting a random signal generator will only create yet another random signal generator, which will, therefore, be equally ineffective. Why is it? Transaction costs (spread, commission, slippage, swap, etc). These accumulate over time, making both win smaller and losses bigger. Like Jen says, the shorter your trading horizon, and the more frequently you trade, the greater the relative impact that these have. Many traders greatly underestimate their effect. Slippage never operates in your favor, but can have a severely destructive effect during market crashes or ‘black swans’. Statistical fluctuation. If your strategy doesn’t exploit a…