Posts Tagged trading adage
Every trader has heard of the trading adage "Hold onto your winners and cut your losers"... in practice, this is actually quite difficult to do as people have a habit of closing their winning trades early to secure their profit but have a habit of holding onto their losing trades in the hope that they may cover. This behaviour is universal for all investors or traders to the stock market and is known as the Disposition Effect.
I recently learnt of the Disposition Effect through attending
May 19, 2012
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Yesterday I complained about the AUDNZD trade shooting through the roof after I had closed my trade. I said that I would enter new trades with a 50 pip trailing stop loss on my Forex trading.
Well, last night, I found two more potential candidates in the Forex markets... the EUR/CHF and the EUR/JPY. Both charts had the stochastics cross and the change in the trend moving average indicator.
The EURCHF had previously cross the day before and I had traded this signal to find that I had got
June 5, 2008
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