Articles

We get questions like this one quite often. We find that most aspiring traders don't have a clue as to what to expect from the market. Yet here they are, putting up their money. Most are going to learn the hard way. We have no idea in the world what you can expect to make in your first year of trading, or any other year, for that matter. What we can tell you is that without proper guidance and help, you are probably going to have some very bitter experiences. Why? Because your anticipations are almost completely wrong. Futures traders, especially beginning traders, often open an account with unrealistic expectations of trading performance. These expectations could be formed by the sales literature for a trading program that emphasizes...

At some point, if they last long enough, all traders discover that successful trading is not the inevitable result of a good trading strategy or system. If all we needed was a good system or indicator we would all be successful traders. Yet clearly we are not, far from it, there are very few traders making their living consistently from the markets. Technical analysis is a vast and well researched subject. Many minds have poured their heart and soul into searching for the holy grail of trading: the system, strategy or indicator that will yield to them unlimited wealth and glory. Yet with all this depth of knowledge readily available, trading profits remain as elusive as ever. System Vendors and the Holy Grail If we were to take a...

In the first and second parts of this series I looked at some of the various elements you will need to master if you are to have a chance of succeeding at trading. In this final article, I will run through a strategy I have used in the past to illustrate some of the concepts previously discussed. Basic Strategy The UK stock markets tend to be range-bound, especially on a short-term basis. This strategy looks to buy low and sell high, so it is swing based. It uses the basics of support, resistance and trendlines combined with money management as I've discussed earlier. The Rules: Look for a test of support or resistance or a trendline that fails to break. If it tests support and bounces up, then go long and place the stop just...

This article is aimed at those who fancy a go at spreadbetting, but haven't a clue what to do. The hope is that by the end you'll know enough to get started with a tiny bit of confidence. It goes on a bit, but compare it to books on the subject and you'll realise it's admirably brief. Trading requires deep pockets, right? Nope. I'm pretty sure that out of the 20 odd thousand T2W members not every one of them has £500,000 - £1,000,000 to invest - in fact I'd take a long right now on the probability that thousands and thousands would consider £1000 quite a big lump to invest, especially as so many of us are struggling to learn how to survive, let alone win. So let's assume you have a few hundred, or a couple of thousand, to invest...

In part 1 of this article, I looked at some of the basic elements of trading, including chart reading and money management. In this second part, I will consider some other essential issues, such as the need for discipline in trading and the importance of practice and planning. The Importance of Discipline I have previously mentioned why it is important that you DON'T move a stop-loss to increase risk, and I wanted to go through the "what if" scenario of letting a stop run. We'll take this example from Barclays from January 2003. Here we have a nice double (or even triple) bottom on support, and a clean bounce up. You take this long entry with a tight manual stop at 360. This is what happens over the days to come... Brilliant...

The Basics of Trading I've had a long running thread on the T2W boards giving an introduction to the central themes of trading. This series of articles has been adapted from that thread and will take you through all the areas you need to get a start in trading, from chart reading to defining a strategy. In Part 1 I will look at: Basic chart reading Money management Exiting a losing trade Setting a price target Part 2 will then consider: The importance of discipline Paper trading The trading plan And finally, in Part 3, I will bring it all together by taking you through a simple trading strategy. Basic Chart Reading Ok let's start with the basics of chart reading and deal with Support, Resistance and Trendlines. This...

The Right Tools for the Job: a guide to the hardware needed to trade from home As someone who's already considering trading, you'll already have a PC and be connected to the internet - you wouldn't be reading this otherwise - but you might be asking yourself just what sort of hardware and software does a trader need to give them an edge in today's high-tech marketplace. In the last few years, the relentless march of technology has made trading from home a viable proposition for many people. With a fast connection, modern PC and a Direct Access Broker, we as self-employed traders are able to access the same tools and systems that not so long ago were strictly for the professional. There are many different ways to trade the markets...