RSI – Overbought, Oversold, or Overplayed?

The RSI can be an essential tool in a traders arsenal when used correctly. The problem is that there are a million trading styles and there is no one, single way to use an indicator. So what works best for you? In our quest to bring you tips and tricks from some of the best traders of all facets of trading we have invited Mark Hodge, Head Trading Coach at Rockwell Trading as a guest today. Mark is going to share how he uses the RSI, and if you have a similar trading style it could have a profound impact on your trading.
RSI is an indicator that is often used to identify overbought and oversold conditions when trading. Unfortunately, most traders use this indicator too literally, and miss out on some of the biggest trends. In this article I will introduce how RSI is typically used, and share a different way to use this indicator that could have a significant impact on your trading.

The Relative Strength Index, or RSI, is a popular indicator developed by Welles Wilder, and was first introduced in the book New Concepts in Technical Trading Systems. RSI is a momentum indicator used to measure changes between higher and lower closing prices. Continue reading "RSI – Overbought, Oversold, or Overplayed?"

The Power of Money Management

We have all heard the tale of the Tortoise and the Hare, wherein Aesop teaches us the lesson that "slow and steady wins the race." Like wise in trading, consistent, steady profits and solid money management translate into a winning portfolio. With us today to share his thoughts on money management is Mark Hodge, Head Trading Coach at Rockwell Trading. After you have read Mark's take on this important facet of market success, please share your thoughts, comments, or questions below.

In my experience very few traders truly understand money management and how to use it. This is unfortunate. I’d argue that money management is the single most influential factor on your financial growth as a trader.  Using the example below, I’ll even show you how you can double your trading account in less than a year, averaging only $125 a week. Continue reading "The Power of Money Management"

10 Steps to Becoming a Trader

Today's guest is Mark Hodge of Rockwell Trading. The very basics of trading are often overlooked by new traders and I think we all can agree that you need a solid foundation to prosper in today's markets. Mark decided to write a post on what, in his experience, makes a successful trader. Be sure to comment and feel free to share your success (and horror) stories of becoming a trader. Also, don't forget to visit Mark at Rockwell Trading.


With the way the markets have been behaving these days, it’s no surprise that more and more people are interested in trading. If you’re new to trading, you’re probably attracted to the potential to make money, but you’ve heard horror stories about traders that have lost money in the markets as well. If you’ve been trading for awhile, you probably have a horror story or two of your own. These stories and experiences are important to share, but it’s unfortunate when many of these horror stories could have been avoided by understanding what it takes to become a trader, and by having direction early on.

The following “10 Steps to Becoming a Trader” provide a structured and systematic approach to becoming the trader you want to be. By following these “10 steps” you will be in the best position possible to achieve your goals as a trader:

Step 1 – Determine the type of trader that you want to be.

Sounds simple enough, but if you don’t address this key step it will be difficult to progress as a trader. What markets and time-frame will you trade? You’ll discover that your situation and goals will have a direct impact on the type of trader you decide to be. So ask yourself, what type of trader will you be? Continue reading "10 Steps to Becoming a Trader"