Today the Trader's Blog is welcoming back Marc Nicolas of TradingEmini.com. In previous posts Marc has shared invaluable trading concepts as well as tips on technical analysis. Today will be no different as he discusses the concept of using a runner to break up lots and control risk. If you like this post be sure to join Marc and the TradingEmini.com staff for a special webinar for INO users next Wednesday, click here for more information.
To make serious money trading while controlling your risk, you need to master “the runner.” The runner is the percentage of a position which you keep open for as long as possible when the trade moves in your direction. It’s one pillar of the fundamental trading maxim, “cut losses fast, let profits run.” Sounds easy, however applying the runner principle is challenging. To understand why, we’ll look at how the most minimalist trade, buying one contract or share, can be sub-optimal. Continue reading "Master The Runner"→
It seems the latest and greatest trend for people is Forex, and the more I research the more I hear and learn about scalping. I'm no expert by any stretch of the imagination, but Jason Fielder from TriadFormula.com seems to have the lowdown on how to do it...and how to do it right! I've asked him to come and break some of his methods down for us so we can continue to diversify and stay profitable! As always the comments are open and Jason is looking forward to answering any and all questions.
If you are currently scalping FX markets (or are planning to), there are certain universal rules that you simply need to know to survive. Beyond these rules exist another level of knowledge that very few traders possess...
Scalping the Forex market brings certain challenges that you don’t have when trading on larger time frames. For example, if you are trying to take 100+ pips out of the market with a spread of 2 pips, the cost of this trade is only 2% of the total. Now, if you are scalping for 10 – 15 pips with a 2 pip spread, the cost of this trade is as high as 20%.