Great Trader Learning – 20 Cognitive Biases that screw up your Decisions in Trading

Hi Traders,

I would like to  share this great info-graph from Business Insider that talks about the 20 most common cognitive biases.

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Trader Meme #1 – Trading Rules…!

Trader Meme #1 – Trading Rules…!

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Trader Definition – ‘Momo Play’

Trader Definition – ‘Momo Play’

Definition of ‘Momo Play’

A slang term used to describe an advanced trading strategy based purely on momentum. In a momo play, the trader is not interested in the company’s fundamentals, only in the short-term direction of a security’s price movement. As such, momo plays are used solely by day traders, not by buy-and-hold investors.

Investopedia explains ‘Momo Play’

An example of a momo play is the five-minute forex momo trade, which is a fast trade based on identifying a momentum burst on five-minute charts. In this play, a forex trader tries to make money from an extension move but will exit the position as soon as it appears to be weakening in order to protect profits.

SOURCE


HAPPY NEW YEAR 2013

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Trader Cartoon – Santa , Snow is Falling!

TRADER CARTOON – SANTA , SNOW IS FALLING! 

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Trader 2 Trader Wishes you a Merry Chirstmas