The Elliott Wave Principle is a specific method of technical analysis, discovered by Ralph Nelson Elliott in the 1930s. Its forecasting value comes from the fact that price movements form repetitive patterns – waves. Those waves are the result of human mass psychology. In other words, mass psychology is market psychology, so there is no need of news, fundamental factors or expert’s opinions, if one knows the pattern and what to expect after it.

4 Tips on How to Trade Large Positions

Trading large positions, moving serious money around, risking, but also profiting. That’s the image we have in our heads once we start trading (or even before). Making it big! But for most this is a just a destination and the journey towards it holds the keys to not only reaching it but also staying there.…

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Adding to Positions – How and Why?

Adding to positions while they’re still open isn’t something that’s usually a part of the initial trading plan. It’s more of an advanced skill and it can be used for both a winning or a losing trade. But what many traders underestimate is how this affects them in purely mental ways. When adding to a…

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Does the 10 000-Hour Rule Apply To Trading?

All good things come to those who study. At least that’s what parents say and it’s why some new traders start on an arduous journey of applying the famous 10 000-hour rule to their studies of the market. But is this number really relevant when it comes to trading forex, stocks and cryptocurrencies? To answer…

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How to Set Your Trading Station

Just like any new activity we take up, there are mistakes that come from inexperience. Whether it’s going to the gym and buying all the gizmos that tell you when you’re tired (in a visually pleasing and fancy way), or if you want to have a home brewery and you assemble a small factory in…

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Feeling Regret About Your Trades? Use it!

Just like with almost everything in life, trading can cause regret. Whether it’s for a missed opportunity or for a wrong decision, those little red and green numbers have the ability to push us into some pretty extreme emotions. Regret can control our behavior because it happens right after we’ve had a bad trade. It…

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Boredom in Trading: How to Overcome it?

There are times when there’s absolutely no boredom in trading but there are long periods when there’s no movement at all or your trading plan doesn’t allow opening a new positions. Other moments can actually be extremely exciting. The rush we get when we see a position become profitable is quite remarkable. The despair, anxiety…

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Breakeven Trades – How to Make the Most of Them

We all trade to make money. We focus our attention on the trades we made a huge profit on and we sweat over the ones that lost us part of our account. Breakeven trades don’t get so much attention. But what the majority of traders don’t realize is how important they actually are. First, let’s…

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4 Tips on How to Avoid Fear and Greed in Trading

Even people who have just entered the trading world quickly notice something interesting – when prices start falling they seem to do it really quickly, almost like falling from a tall cliff. Upward momentum on the other hand is quite often at a steady and moderate pace. There are exceptions of course but this does…

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How Much Time Should Trading Take if I Work or Study?

When many people start dedicating time to trading they can have some different experiences. Some might have a lucky streak with a lot of winning trades, even though they don’t know exactly what they’re doing. Others might have no luck at all and lose trade after trade. This impacts the way they perceive how much…

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Bollinger Bands Basics

Liked for their attractive appearance and easy interpretation, Bollinger Bands are in the top three most popular indicators. John Bollinger developed two bands that reflect volatility and are located over and under a moving average. To determine volatility and measure it, Bollinger uses standard deviations, which change with the up and down movement of volatility.…

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Greed Not to be Mixed with Trading

Almost all people who go into trading are at least partially driven by greed. Maybe not in a bad way, maybe not in excessive amounts. But it is there. This is natural and is part of our human psyche. But it can lead to disastrous consequences if you let it drive your decisions and trades.…

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Trading with the On Balance Volume Indicator

On Balance Volume (OBV) is a volume-based indicator that aims to measure the pressure buyers and sellers exert on the markets. Its approach is to add volume on days that the price rises and subtract volume on days that the price drops. Developed in 1963 by the chartist Joe Granville it was probably the earliest…

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Volume Trading Basics | Forex, Crypto, Stocks

Volume is one of those trading terms that can be a bit confusing. What does it represent? Is it an indicator? How is it calculated? How do you interpret it? We’ve got all the answers here. Let’s tick off the definition: if one buyer and one seller perform a transaction at an agreed upon price…

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Trading Diary: Why You Need One

The ability to learn from one’s mistakes is a valued asset in all parts of life. But it’s especially true when it comes to money. Investing is all about money and having a trading diary, regardless if you’re a day trader, or focused on the long term, is a must. Having a record of what…

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