General Financial Trading Articles

Creating True Wealth as a Forex Trader
General Financial Trading | Written by Avi Frister
The forex trader can start trading with as low as $300. Yes, today most on-line brokers will allow you to open an account with such a low sum making forex trading accessible for virtually everyone.
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Becoming Your Own Trading Coach
General Financial Trading | Written by Brett N. Steenbarger
In a recent blog post, I suggested that coaching for traders could be valuable if properly structured. But is it possible for traders to coach themselves for success? Can the process of expertise development be self-generated?
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The Cost of Common Market Wisdom
General Financial Trading | Written by Brett N. Steenbarger
My advice for new traders is to question, question, question everything they read and hear about markets. Many times, common wisdom is uncommonly misleading.
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Hybrid Trading: How Discretionary Traders Can Become More Systematic
General Financial Trading | Written by Brett N. Steenbarger
I recently finished an article for SFO Magazine with Henry Carstens, the system developer who contributed a worthy best practice for the series a while back. I continue to feel that Henry's introduction to testing trading ideas is the best article on the topic I've ever read.
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The Most Important Step in Becoming Your Own Trading Coach
General Financial Trading | Written by Brett N. Steenbarger
Before you read this post, I'm going to ask that you review my previous post on "The Devon Principle". It is very, very relevant to a question recently asked of me by a trader: "I know I can't afford to hire a private trading coach. What do I need to do to coach myself for success?"
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Trade Like a Scientist
General Financial Trading | Written by Brett N. Steenbarger
A theme I emphasize with new traders is that it is important to trade like a scientist. The scientific mindset is one that can be rehearsed and cultivated--and eventually internalized.
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How Can I Learn Trading?
General Financial Trading | Written by Brett N. Steenbarger
A blog reader recently asked me this simple, but not-so-simple question. My book Enhancing Trader Performance is an attempt to describe the process by which traders (and professionals in other fields) develop expertise, and I know of quite a few traders who are using ideas from the book to guide their own development.
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The Changing Face of Market Information
General Financial Trading | Written by Brett N. Steenbarger
Blogging has become an important source of publishing, owing to its timeliness and ready availability. Print publications take hours or days for assembly and distribution; blogging can post information on the fly.
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Three Creative Approaches to Market Analysis
General Financial Trading | Written by Brett N. Steenbarger
One of the joys of blogging about trading is the opportunity to discover interesting people doing worthwhile research on the markets. Many times these researchers labor in relative obscurity, undiscovered by the majority of traders.
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What a Difference Four Months Make
General Financial Trading | Written by Brett N. Steenbarger
On 5/11, the S&P 500 Index had just hit a peak value for this bull market, a bit over 1325. As of Friday, the S&P is at almost 1299 and has not surmounted that May peak. The NASDAQ and Russell averages, in percentage terms, are even further from their May peaks.
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The Value of Market Blogs
General Financial Trading | Written by Brett N. Steenbarger
Recently, we've seen several attempt to identify the best blogs for traders and investors. Kiplinger's came out with their list recently, and the 24/7 Wall St. site offered a very complete roster.
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Half of What You See on the Screen Isn't Real
General Financial Trading | Written by Brett N. Steenbarger
Suppose you see the S&P 500 Index (ES) futures rise a full point in a short period of time on solid volume. Seeing the market rally, you jump aboard, only to have the entire move retrace.
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Filtering Market Signal From Noise
General Financial Trading | Written by Brett N. Steenbarger
In a recent post, I showed how the 11% of largest trades in the S&P emini futures controlled essentially all of the market's price action. While large trades of 100 contracts or more make up only about 3% of all trades executed in that market, they account for well over half of all volume.
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Evaluating Your Money Manager
General Financial Trading | Written by Brett N. Steenbarger
Let's imagine that you've amassed a reasonable nest egg for retirement, but you need someone to guide its investment. Your goal is to achieve a respectable return on your money without taking large risks. There are many money managers desirous of your business, so you decide to put together a set of interview questions to see who you like best.
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When Stocks Makes Highs, Should You Buy?
General Financial Trading | Written by Brett N. Steenbarger
In the wake of enthusiasm regarding all-time highs in the Dow Jones Industrial Average, it's worth asking the question of whether we can achieve superior returns by buying periods of elevated prices. The trend follower might look to capitalize upon such strength; the value investor may shy away from price highs.
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What Can We Expect From Low Volatility Markets?
General Financial Trading | Written by Brett N. Steenbarger
My recent research has shown that there is a close relationship between the pricing of option premiums and future stock market volatility. Specifically, when the VIX has been low, we've seen lower volatility among stocks going forward.
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Three Ways to Develop Your Trading
General Financial Trading | Written by Brett N. Steenbarger
A brokerage firm exec recently talked with me about the educational needs of new traders. What do new traders need to succeed? How can we improve upon the ratio of traders who succeed to those who blow out of their accounts within months?
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What to Look For in a Trading Firm
General Financial Trading | Written by Brett N. Steenbarger
Every week I hear from traders interested in affiliating with a trading firm. They recognize that such affiliation provides them with deeper access to capital, a greater variety of trading tools and technologies, lower commissions, and the benefits of interaction with other successful traders.
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Developing Your Trading Ideas With Web 2.0 Tools
General Financial Trading | Written by Brett N. Steenbarger
In a recent blog post, I noticed that, in the wake of the market selloff on the election news, alternative energy stocks such as Ballard Power Systems (BLDP) were rallying sharply. That observation early in the trading day made for a very nice daytrade.
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Do Opening Gaps Tend to Fill?
General Financial Trading | Written by Brett N. Steenbarger
The difference between the market's opening price and its previous day's close forms a gap on a bar chart. Does this gap tend to fill in during the next day's price action?
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Three Market Idiots
General Financial Trading | Written by Brett N. Steenbarger
There are three varieties of idiots in the market you're likely to encounter during your trading career. Contemplating the above truth from the great site of Despair, I thought I'd give you a heads up, so you can avoid these laggards in the great Darwinian race.
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Three Relentless Steps You Can Take Now Toward Becoming a Better Trader
General Financial Trading | Written by Brett N. Steenbarger
One of the goals of my book Enhancing Trader Performance was to figure out what makes successful performers tick - in any field of endeavor. What I learned in researching the field was that talent - inborn abilities - are necessary for success, but not sufficient.
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What You Can Learn From the Opening Minutes of Trading
General Financial Trading | Written by Brett N. Steenbarger
Is today likely to be a trending day or a range bound day? Are we likely to see volatile price action or slow meandering? Are we likely to test recent highs or lows? All of these are important questions for short-term traders as they begin their days.
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Gurdjieff, Turtles, and Trading
General Financial Trading | Written by Brett N. Steenbarger
Most posts about trading, mine included, are about doing: what to do, what not to do. This is a post about how to do. This is an important post.
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Controlling Emotions is Not the Goal of Trading Psychology
General Financial Trading | Written by Brett N. Steenbarger
Pick up a book or magazine article about trading psychology and you're likely to find prescriptions for success based on controlling emotions and increasing discipline.
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Three Pieces of Trading Wisdom
General Financial Trading | Written by Brett N. Steenbarger
Over the years, I've been the fortunate recipient of much good trading advice and wisdom from those far more experienced in the markets than me. Here are three gems that have stood me in good stead in up markets, down ones, and everything in between...
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Three Pervasive Myths of Trading Psychology
General Financial Trading | Written by Brett N. Steenbarger
My work as a trading psychologist has provided me with a fascinating window on the factors that separate successful from unsuccessful traders across a variety of settings, from proprietary firms to investment banks to hedge funds.
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Letting Profits Run: Becoming Your Own Trading Coach
General Financial Trading | Written by Brett N. Steenbarger
My most recent post emphasized many of the basics that enable people to become their own trading coaches. For this last post in the series, let's apply those basics to one of the most common trading problems that people describe to me: the difficulty of letting profits run.
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How I Trade: Handicapping the Odds of Hitting Pivot Points
General Financial Trading | Written by Brett N. Steenbarger
Pivot points are prices that have been used to identify potential spots of support and resistance. Can we use information generated during the day to help us identify when we're likely to hit pivot points?
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The Personality of the Trader: How It Affects Performance
General Financial Trading | Written by Brett N. Steenbarger
A recent pilot study addresses the interesting topic of how a trader's personality affects his or her trading performance. The researchers focused on six personality traits and their impact upon trading:
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A Personality Questionnaire for Traders - Parts 1-3
General Financial Trading | Written by Brett N. Steenbarger
The following questionnaire asks you to assess your emotional experience during your trading. Specifically, you'll be rating how often you've experienced the following feelings over the past two weeks.
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How Large An Edge Do You Need For Daytrading?
General Financial Trading | Written by Brett N. Steenbarger
In past posts, I have tried to capture what separates market pros from the less successful traders. I've also stressed the importance of tracking the market pros in short-term trading.
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Six Keys to Trading Success: Lessons From a Successful Trader
General Financial Trading | Written by Brett N. Steenbarger
In my last post, I mentioned that a generous blog reader shared his intraday trading approach with me last week. His ideas seemed sound, so I suggested that he contact Henry Carstens, an experienced systems developer.
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The Role of Somatic Markers in Trading Decisions
General Financial Trading | Written by Brett N. Steenbarger
In past posts, I have emphasized the importance of controlling the body's level of arousal as a fundamental trading skill, because so many psychological disruptions of trading are state-dependent. There are cognitive and behavioral methods for achieving such control; these include simple exercises that traders can perform on their own.
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