Trader Mike

There seems to be a lot of controversial over the concept of R-Multiples. I’ve been seeing people complain about them for months now and I’ve been meaning to write a post about “R”. I really wanted to do it last week but I’m glad I didn’t get to it because this week a […]

I was asked the following via an email:

I was just curious if you could share with us your trading objectives. Do you just let your winners run and protect your losses or do you consistently make small gains?

I basically try to perform a balancing act between several trading rules/axioms. I’ve listed four axioms […]

Last week the following question was asked of me about trading journals:

This expectancy stuff is very intriguing. I plan to take advantage of that concept immediately. I have been keeping a log of every trade I have done, but I have not kept track of what I now wish I had (overall market sentiment, etc…. […]

(Edit: You may also be interested in my article detailing how I trade as well as my hardware and software setup.)
I’ve been exclusively day trading for almost three months now. The switch from swing trading has been quite an experience and I’ve had a few ‘light bulb’ moments along the way as you’ll […]

Position sizing could very well be the most important aspect of a trading system, yet, like expectancy, it’s rarely covered in trading books. A position sizing model simply tells you ‘how much’ or ‘how big’ of a position to take. Position sizing can be the key factor in whether or not you stay […]

I just finished reading William O’Neil’s book ‘How to Make Money Selling Stocks Short‘. I was rather surprised at the approach O’Neil professes. Given that he’s such a proponent of using both technical and fundamental analysis when buying stocks, I expected him to do the same for short selling. That’s not the […]

An extremely basic explanation of short selling.

Michael Covel’s ‘Trend Following: How Great Traders Make Millions in Up or Down Markets’ will certainly be regarded as a classic investment book. Everybody involved in the markets should read this book.

Moving averages (MAs) are very simple, yet extremely useful tools for investors. A moving average is simply the average of a series of numbers over a period of time which is constantly updated by dropping the oldest value and then adding the newest value and recalculating the average. So a 5-day moving average […]

Learning how to use candlestick charts was probably the second most important thing I’ve learned (money management is a clear #1) since I started trading for a living. The funny thing is that when I started trading all of the charts in my trading software were defaulted to displaying candlestick charts. At that […]