Improve your Trading by Changing your Thinking

Tradinformed - cognitive bias and trading

In this article, I look at how a pair of research psychologists have revolutionised how we think. I discuss how their work helps explain why a few traders are very profitable, while the majority struggle to make money. At the end of the article, I have a few ideas for simple trading strategies. The Undoing […]

How to Trade a EUR/USD Breakout Strategy

EUR/USD with Donchian Bands

Why a Breakout Strategy is an Essential Part of Your Portfolio Every trader should consider including a breakout strategy in their portfolio. Breakout strategies are simple to understand and trade. They are great for the lazy or time-poor trader. They reward patience and consistency. They give diversification and work well in bull and bear markets. But […]

How to Time S&P 500 Entries Using the VIX

VIX S&P 500 Entry Signal

I recently received an email from Dr Alexander Elder in which he mentions using the VIX Volatility Index as an entry signal for the S&P 500. I particularly like that this trading idea is specific and measurable. In this article, I talk about the entry signal and show the results of testing this strategy. Alexander […]

The Best Sources of Free Historical Price Data

One of the questions that I am asked most often is: where can I get free online historical price data? In this article I look at some the best sources of free online data. I give my thoughts on why each source is useful, pitfalls to avoid and links to some useful resources. Why Should I […]

How to Backtest a Stock Market Trading Strategy

In this article I show how you can use Excel to test your own stock market trading strategies. The strategy in this article uses the concept of Relative Strength and tests the Nasdaq 100 and S&P 500 indices. I also share my thoughts about why I think every trader should backtest their strategies. Why Should I […]

How this Psychology Experiment Can make You a Better Trader

I recently thought about the similarities between becoming a successful trader and successfully losing weight. Both of them can be very challenging and need a combination of knowledge, discipline and persistence. One thing I found fascinating was a psychology experiment carried out by researchers at Stanford University. This experiment tested the willpower of students and has some […]

How to Calculate Lots for Fixed Fractional Position Sizing

How Calculate Lot Size

All forex traders will admit that they found lot size a confusing issue when they first started trading. It is more complicated than other markets. However, with the explanation below you will soon be able to calculate the correct lot size with ease. This article shows how to calculate your lot size in order to risk a fixed […]