Category: Reader Questions Answered

I get loads of questions about trading and the markets. Those that I think have broad interest to readers I answer here for everyone to read. This is the collection of those questions and answers. If you have a question, use the Contact link at the bottom of the page to submit it.

Why teach others how to trade?

A question came in this morning from a “fan” of The Essentials of Trading Facebook page. It …

Trading System Testing and Risk Management with Multiple Securities

A reader of my book sent me a question that combines system design and testing issues with …

The Relationship Between Stocks and Forex

I was asked a question by someone on my mailing list yesterday about the relationship between the …

Criteria for Position Trading

I was asked the question “What criteria is important with position trading?” by a recent site visitor. …

The Essentials of Trading Book Discount Availability

I got a question about my book recently. It speaks to me offering the book for sale …

Who is the Smart Money?

Ulli at The Wall Street Bully recently had a post in which he took on the question …

Whenever I trade the market goes against me.

Here’s an email I recieved from a clearly frustrated new forex trader. My problem is most of …

Trading Services Performance Records and Refund Policies

Here’s a question that came up over the weekend. Why do so many Live Trading Services not have …

Should I Become a Chartered Market Technician?

Those looking to become professional traders or market analysts often ask questions related to education and professional …

Scalping Individual Stocks

What is the best way to approach trading only 1 stock over and over during the trading …

Computer Requirements for Traders

There comes up from time to time the question of the type of computer hardward and software …

On Technical Indicators and Trading Methods

Indicators are always a favor subject among traders, especially new ones still trying to find their niche …

Professional Trading: How Long to Get There, Are Good Genes Required?

I got a set of questions from a member of my mailing list over the weekend. They …

An Emailer Struggling to Trade for a Living

I received the following email from a trader struggling with trading for a living. Ho John, If …

Questions About Elliott Wave

I have been reading books on Elliott wave principle and trying to figure out how to apply …

Over Two Years Trading and Nothing But Losses

A member of my mailing list – from New Zealand, I believe – wrote in to express …

Forex Volume Figures

I had a question come in overnight regarding volume data and how it can be used for …

Futures vs. ETFs Performance Differences

Here’s an interesting, but somewhat complex question about oil trading I had come in by email. Well, …

Where does forex leverage come from?

A question was posted on BabyPips which occurred to me as being something readers here might wonder …

Do You Still Do Trader Coaching?

A student of one of my trading courses sent an email the other day that touches on a couple …

Exploring Automated Trading Systems

Fully automated trading through the use of so-called “robots” or “expert advisors” (EAs) at the retail (meaning …

A Reader’s Story About a Stop Getting Hit

A reader named Susan left this comment recently on the Some Not-So-Great Tips for Using Stop Orders …

Technical/Fundamental analysis a child’s game

A reader named nikesh posted a comment to yesterday’s Improving the Win Rate of Trend System With …

Improving the Win Rate of Trend System With Oscillators

This question came in over the weekend from a gentleman working on improving his trend trading system. …

Can a Shared Trading Edge Still be Profitable?

Yesterday I wrote Conspiracies, Regulations, and Trader Paranoia in which I tried to clear up some of …

Shifting from Trade Signal Follower to Trader

Trader Rob from north of the border in Canada (at least that’s north of the border for …

Help! I Can’t Stick to My Trading Plan

Here’s a question I received over the weekend that I know is one a great many traders …

How can forex brokers provide so much leverage?

Margin and leverage in trading are topics that cause a great deal of confusion to new traders. …

Paying a Prop Trading Shop for Training

Here’s  a trader question that came in over the weekend. Hello John, What do you think of these …

Am I using enough indicators?

A little while back I wrote Being a Focused Trader on the subject of traders getting a …

What is your take on this trading software?

Here’s another recent trader inquiry that came in via email. I have done some research on the Fap …

I Want to See the Full Trade Process

This question I received by email from a trader on my mailing list brings up something very …

Help With Trading Taxes

I had this question come in yesterday regard finding a tax professional to help with trading related issues. …

Going from Student of the Markets to Profitable Trader

A reader named Jon sent me the following question: What do you think is the biggest obstacle to …

Being a Focused Trader

Here’s an email from a member of my mailing list which brings up a lot of the …

Volume in the Forex Market

Here’s an email question that came in recently which relates to volume in the forex market. Hello …

Live Trading Performance Not Matching Demo Trading Success

I have long been a proponent of new traders getting their feet wet in live trading as …

More Trading Timeframe Questions

Judging by the frequency with which I find myself answers questions about it these days, trading timeframe …

Is Technical Analysis Useless in Forex Trading?

An email came in from one of my list members the other day. It basically asks the …

An Investor Learning About Trading

Here’s a note I received from an investor looking to maybe dabble in the trading world. Hi …

Different types of stops

Stops are always a favorite topic for discussion in trading circles. Here’s a recent question that came …

Times for placing trades

Here’s a really interesting trader question that came in via email recently. Trying to be as specific as …

Looking at Risk and Stops Across Markets

Here’s the core of a note I received from a member of my mailing list a short …

Picking a Broker

I got this broker question the other day. The single most important question would be what broker …

Screening Stocks for Shorting

 With good reason, quite a few formerly long-only stock traders have been exploring the short side of …

Supporting Yourself Through Trading

The other day I found the following in my email inbox: I have only managed half the …

A Trader’s Educational Path

I received the following in an email from a member of my mailing list. Because I think …

Exiting Option Trades

In keeping with the recent theme, here’s an option trading question I received over the weekend. Hello John, …

Trading With Pivot Points, MAs and Oscillators

The other day a trader named Sam put the following question to me: I day trade via …