- Risk of Ruin For Dummies November 2, 2012
A good percentage of traders and investors get ruined because they are deceived into believing that they can be profitable in the longer term even if they are wrong more often than they are right provided they win multiples of what they lose, on ...
- Same Investments But Divergent Fortunes October 8, 2012
Both read the same newsletter. Both followed the exact same advice and purchased shares of BubbleNet, Inc. Yet, John lost a small fortune while Bob made a small fortune. How did this happen?
- What is so Special About the 200-Day Moving Average? The GLD Case December 23, 2011
The importance of the 200-day simple moving average as a trend indicator is well-known and indisputable. Even those who do not use technical analysis pay attention to this average.
- The Many Faces of Trading Expectation [Premium Articles] November 25, 2011
Expectation has many faces that often they make more sense than a fancy mathematical definition.
- Curve-fitting and Optimization [Premium Articles] September 7, 2011
Trading strategy development usually involves optimization and curve-fitting of some sort.
- Optimal Position Size Methods and Other Misconceptions August 26, 2011
Optimality usually refers to a solution to a problem derived with respect to some objective function.
- What Every Trader Should Know About the Win Rate, Profit Factor and Payoff Ratio [Premium Articles] April 18, 2011
Every trader should know this formula
- Account Undercapitalization is the Primary Cause For Trader Failures October 30, 2010
About 11 years ago, I gave a presentation in a conference in New York City as an invited speaker. The audience was mostly comprised of inexperienced traders. A good part of my presentation was on the subject of risk of ...