Risk To Reward Ratio In Trading

There are two points of self assessment that still stand up: tolerance to risk and the amount of time, because both of them will dictate what type of trading system you end up trading and also the market you will end up trading. At this point you should have started to answer this question in your mind: how will you take profit from the market, how much time can you devote to do it and how much risk are you comfortable with.

Money Management - The Primary Aim of Trading

In this video, Stuart McPhee says that no matter what aims you may identify when first determining what you are setting out to achieve with your trading, all aims are secondary to your primary goal — preserving your capital. This is by far the most important aspect of successful trading.

Making money is not the most important aim. The money that you have are the most important. Protecting the money that you have is the most important aim. Making money is also important. He was sometime asked what is his best advice for a trader and he said that he would say not to get out.

A Simple Trading Strategy using Relative Strength

In this video, Stuart McPhee talks about a simple trading strategy using a concept called relative strength that can be applied to stocks, forex and futures markets over any time frame. He starts talking about sector analysis, which means finding the best performing sectors or industry groups. This is a trading strategy which is widely used by many people over many years. The concept of relative strength is measuring the performance of one thing against another.

Learn Stock Trading First

In this video the speakers talks about stocks. There is always going to be new products to catch attention on stocks and the forex is something that is in vogue and everybody seems to be attracted to it. After you will analyse the risk level you are going to opt for, you will probably choose a short-term trading system. If you are new, you will go to trade in the forex because the high amount of leverage, but the chances are that you are going to lose money. In the first twelve months you will wish not to lose money so you will have to trade something that fits to that level of risk.

New York Traders Expo Interview #3

In this video, Stuart McPhee conducts an interview at moneyshow.com video network. Usually, Stuart talks a lot about having a trading plan, and one of the most important things is the psychology of trading which most traders are not using it. The last thing that people consider when they start trading is how their mind will play a role in their trading success. In making mistakes and losing money our mind plays the most important role. For the success is the same. We make so many things from instincts and we evolved through many years based on our instincts. But in trading you cannot do that.

New York Traders Expo Interview #2

In this video we can see an interview with Stuart McPhee about why traders fail. Many people get into trading, they think they have a strategy, they focus on that, but a high percent of them don't make it into trading business. This may be due to a lack of a plan. He thinks that people are attracted to trading because they can make a lot of money, they focus on the first decision they make on a trading process and so they ignore other things. You need a complete trading plan which has three things, the mindset, the money management and the method.

Trading Goals & Money Management

In this video Stuart McPhee talks about your primary goal as a trader. He is suggesting that making money is not the most important aim. There is actually something more important. And the more important thing than making money is preserving the money that you already have. Protecting the money that you have has to be yours most important aim. Of course, making money is important. He was sometime asked what is his best advice for a trader. He said that is easy: "Do not get out!"

Trends & The Simple Moving Average

In this video, Stuart McPhee talks about trends and the simple moving average. As you move in time the application of volume just loses its relevance and importance. One of the things that Stuart does is to buy things that are going up, things that are moving higher. He prefers to buy after a three months period of increase. He does not look to buy after two or three weeks after the stock goes higher. He is perfectly happy to wait until the period of three months knowing that it has a period of consolidation.

Is Trading Hard or Easy?

Trading can be hard and easy - which one is it for you? In this video Stuart McPhee explains specific situations where we are required to be counter intuitive. He was running with one of his friends once and he asked him about trading if it is hard or easy. This is a fantastic question. He is trying to respond in very basic terms. Often, the steps along trading success are not obvious and often the majority of actions and decisions are counter intuitive. Trading really is counter intuitive. He applies this idea to more specific situations.

I Don't Use Technical Trading Indicators

In this video, Stuart McPhee talks about why he doesn't use technical trading indicators in his trading. This is one favorite topic for Stuart when it comes about Technical Analysis. One of the common questions about trading is what are the best indicators to use. He thinks that people have a tendency to complicate things. At the beginning people say that trading is not easy so you think that you need a complicated solution for this to make it work. So you use one indicator to calculate what is the best solution.

Syndicate content

Recently Posted Videos