We are all familiar with the phrase, "practice makes perfect", but does that really apply to successful stock trading? The answer is yes. It applies not only to successful stock trading, but success in any area you wish to improve or master. It's very easy to get started with practice stock … [Read more...]
Why Stock Trading Discipline So Important?
One of the most difficult concepts for beginning stock traders to wrap their heads around is a concept of stock trading discipline. Merriam-Webster describes this as "orderly or prescribed conduct or pattern of behavior". Merriam-Webster also provides us with another simple definition of discipline … [Read more...]
The Amount Of A Trading System’s Drawdown Is Only Part Of The Picture
Traders have long been concerned with the size a trading system's drawdown. This, of course, makes sense as all traders should be evaluating risk versus reward at all times. The problem is that sometimes we as traders have too narrow of a focus. We will take some trading system metric and … [Read more...]
Stock Trading System
Stock Trading System First we'll start off with what a system is. According to Merriam-Webster's Collegiate Dictionary a system is "an organized or established procedure". It follows then that a stock trading system can be defined as "an organized or established procedure for trading stock". … [Read more...]
Stock Trading Strategy
Stock Trading Strategy A stock trading strategy is often times said to be the same as a stock trading system. Some feel that a stock trading strategy is more than a stock trading system. A stock trading strategy is said to encompass more than just entry and exit rules but stock selection, risk … [Read more...]