One of the most iconic images people have of Wall Street is the scene from the first Wall Street film where Gordon Gecko delivers his infamous monologue that begins like this, “Greed, for the lack of a better word, is Good”. Since greed and it’s first cousin fear still drive markets, it does serve a purpose in terms of creating … Read More
My Worst Trade
Recently I was going through my trading notes and I happened to come across a trade that I documented a while back. And after looking it over, I realized it can serve as a good lesson to present to newer traders who may not realize that they are also making this costly mistake. Somewhere in our learning curve, we have … Read More
SMB Forex Trading Room Recap 10.25.12
In this segment, Marc Principato, CMT explains the importance of a trading plan and specifically about how many different elements must come together in order to have a robust plan. A trading plan is not about execution alone. — Marc Principato, CMT Risk Disclaimer *No Relevant Positions
Forex Trading: Less Fighting More Fishing
Much of the time when you read about trading, many use metaphors that refer to competition or war. You will often hear phrases like, “the forex arena”, “bulls battling the bears”, “you compete with the best and brightest minds in the world”. This is convenient and filled to the brim with conflict (we love drama just watch the news). What … Read More
SMB Forex Trading Room Recap 10.23.12
In this segment, Marc Principato, CMT explains the the difference between the two kinds of patience a short term trader must have in order operate effectively. There is the patience of waiting to get in and the patience of waiting for a target. — Marc Principato, CMT Risk Disclaimer *No Relevant Positions
Forex Introducing Brokers: Bad or Value Add?
Ask most new forex traders if they know what an introducing broker is and the answer you get is usually a blank stare. If you want to get somewhere in any business, it really pays to be familiar with even the smallest of details. In the retail forex business, understanding the role of your forex broker can affect what strategy … Read More
The Trend: Is it Your Friend or Just an Acquaintance?
We’ve heard it a billion times: The most effective way to trade the forex market is to trade with the trend. Like 80 years ago some fast talking high pants guy probably at the New York Stock Exchange said, “The trend is your friend, seee?” So now what do we do? Find a chart that looks bullish and press the … Read More
Forex Trading Room Recap 10.18.12
In this segment, Marc Principato, CMT, explains why larger time frames are so important to analyze before taking day trades or even scalps. He examines the EUR/USD as well as the S&P 500 futures. — Marc Principato, CMT Risk Disclaimer *No Relevant Positions