20 Habits of Wealthy Traders

1)      Patient with winners and impatient with losers 2)      Making money is more important than being right 3)      View Tech Analysis as a picture of where traders are lining up to buy and sell 4)      Before they enter every trade they will know profit target or stop exit 5)      Approach trade no.5 with the same…

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Japanese Candlestick Charting Techniques: a Contemporary Guide to the Ancient Investment Techniques of the Far East

My Views This book is a good read for Price Action enthusiasts. Steve Nison shares with his readers what the candlesticks represents and what the market will likely do after that. His analogies might be a little too elaborated but this is a good way to remember what these candlesticks mean. Description A form of technical analysis,…

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FTSE Broke-out of Consolidation Range

(Click on image for Larger View) FTSE dived into consolidation mode on the 16th May 2012 and has since formed a clear price range. On 1st June, Price made a false breakout (circled) down south and started shooting upwards. The 4 hour chart above shows strong momentum upwards and price has broken above the 5410 Resistance level…

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Video: Your words and thoughts have physical power – Will Smith

Will Smith sharing his thought process and believes, very inspirational and motivating. This is definitely worth the watch.    

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FTSE Does it Again: Respecting Support and Resistance Levels

(Click on Image for Larger view) This morning, out of total randomness, I thought I had a look at the FTSE on a 2 min chart. The chart above was what I found, it was respecting Support and Resistance (S/R) levels like a textbook chart, bouncing and breaking various levels as it should and making…

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EURUSD: Has It Tanked Enough Yet?

(Click image for Larger View) The EURUSD currency pair has been in a strong downtrend since early May. The chart above is a 4 hour chart and has the following price characteristics: Price channel is well defined with little over and undershoots Meeting a trend definition of Lower Highs and Lower Lows This is yet another…

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Video: Mind Over Market – Interview with Mark Douglas

The mind is the greatest tool any trader can own. This is an interview on this subject with Mark Douglas – a successful trader, author and trading mentor. I hope you’ll enjoy this as much as I did. By the way, here are the two books mentioned in interview: Trading in the Zone: Master the…

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When Expensive becomes Cheap: Resistance Turn Support

Related article: Understanding Support and Resistance (S/R). Prices breaks above Resistance level In the past 12 months, the retail price of apples has been ranging between £0.50 (Support) and £0.75 (Resistance) in a specific market. One day, there were rumours about a local government initiative to increase the price of fruit fertilisers. This would have a direct…

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Gold Descending out of a Triangle

(Click on image for Larger View) Gold fell by more than 40 points today, breaking out of a descending triangle. If you’re not familiar with descending triangles, may be this would be another example of how triangles would work. A breakout trader would likely have entered the trade at the break of the previous swing low (1623.22).…

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FTSE Bounces Between Support and Resistance

(Click on image for Larger View)   This is another example of how price interacts with Support and Resistance levels. If you’ve not read my earlier article on this subject, please feel free to have a read here. This is the FTSE 100 on a 5 min chart on the 2nd of May 2012. Price was…

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