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Trend Following Lessons from Jesse Livermore

  
  Education
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Remember, you do not have to be in the market all the time.
Profits take care of themselves – losses never do.
The only time I really ever lost money was when I broke my own rules.
Throughout all my years of investing I’ve found that the big money was never made in the buying or the selling. The big money was made in the waiting. (more…)

Ten Common Mistakes New Traders Are Making

  
  Education
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  1. They jump from trading strategy to trading strategy. New traders must find specific methodologies and systems and focus on trading them with discipline.

  2. Position sizing is too big. New traders tend to trade so big that it engages their emotions to interfere with the trade and creates big losses that destroy their capital.

  3. They don’t use stop losses. New traders tend to focus so much on entries and being right that they fail to have an exit plan if they are wrong and if they do they tend to not take the initial stop loss level and instead hope for a rebound.

  4. Not researching who they are versus how their system works. A trader can only trade a system that matches their risk tolerance and market beliefs.
  5. They like following others into trades. A trader can not copy others because they usually don’t know the time frame of the trade, the position size, or the stop loss level.
  6. They lack  risk management. With out risk management new traders just give back all their profits during their next losing streak or blow up their account with a few big bad trades. (more…)

High-frequency trading: when milliseconds mean millions

  
  Education
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Asked to imagine what a Wall Street share-dealing room looks like and the layman will describe a testosterone-fuelled bear pit crammed full of alpha males in brightly coloured jackets, frantically shouting out bid and offer prices.

He couldn’t be more wrong. Technological advances mean that stocks are now traded digitally on computer servers in often anonymous – but heavily guarded – buildings, generally miles away from the historic epicentres of finance, meaning the brash men in sharp suits depicted in films such as the The Wolf of Wall Street have been dethroned as the kings of finance.
Computer programmers have taken their crown thanks to the code they churn out, which is able to execute trades thousands of times faster than any human. (more…)
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