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.

The Dotcom Bubble and Bust of 1995-2002

In early August 2018 we came across an article saying that “..stocks are as pricey as they were during the dotcom bubble”. This made us reminisce about one of the largest drops in the U.S. stock market’s history, especially for the NASDAQ. But what exactly caused the Dotcom Bubble and where are the companies involved…

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Enron – One of the Biggest Stock Market Scams of All Time

In 2001 Enron Corp. was one of the high-flying U.S. corporations. An innovator, a leader with an impeccable team at the helm and with billions coursing through its veins. The company was the pioneer in introducing several crucial changes in the energy sector which was liberalized in the early 90s. Enron was the first and…

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How to Include Psychology in Your Trading Diary

Over the last several weeks we’ve been mentioning both emotions and your trading diary quite often. Although we’ve said that you should make notes and comments about your mental state during trading, we realized that we need to be a bit more specific about it. So here are some detailed steps on how to combine…

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How to Recover After Losing Your Entire Trading Account

Losing everything you deposited in a trading account is more common than most people believe. It’s actually part and parcel for most traders, especially at the beginning of their trading journey, before they find their bearings and a trading method they can rely on. Whether it’s because they lack discipline, don’t have a trading diary…

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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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