Pretend-traders like to talk about all kinds of trading theories. In their heads, they develop elaborate strategies about how the market should be traded.
What they don’t realize, is that what they think is often different from what happens in reality.
Despite […]
There are, generally speaking, 5 distinct stages of progression among Forex traders.
Each stage centers around a certain set of beliefs, and as the trader grows, he sheds them and gains new ones that propel him forward.
Here are the 5 stages, […]
There’s a fundamental misconception in the finance industry that has led many smart people to make some very bad decisions.
In college, finance majors are taught to calculate the risk of a financial asset based on its price variance, which is essentially “how much its […]
In every complex environment there are written rules and there are unwritten rules.
Written rules are the ones everyone knows about. They are the platitudes commonly found in textbooks and on posters adorning the walls of corporate […]
“The Forex market is the most liquid in the world…” the Guru continued, “so technical analysis is especially applicable.”
My eyes lit up. That was exactly what I wanted to hear. “Yes!” I thought to myself. Forex trading is going to be […]
Intuition is a tricky subject, because there’s no way to prove or disprove that it exists.
Consider however, that there’s a strong psychological incentive for human beings to provide an explanation for coincidences: we want to feel in control.
A mother loses her […]
A Consumer is someone who spends money to get a result, without necessarily understanding how the result is achieved.
For example, if I want a new bookshelf I might head over to Ikea and buy one. I’ll then take it home, […]
Here’s a question for you:
John has two children. At least one of them is a boy.
What’s the probability that the other child is a girl?
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Decide on an answer before moving on.
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Ready?
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Ok!
Intuitively, most people would guess that there’s a 50% chance […]
For a period of time, I was teaching myself how to make a good linguine Aglio E Olio.
As a fan of both stoic philosophy and pasta, I am constantly amazed at how such a simple dish can be so delicious. […]
Go to any popular Forex trading forum and you’ll see entire sections dedicated to the discussion of various technical indicators and systems.
You’ll see people talking about different period settings and how they use them in combination with other indicators to […]