Archive for category: Day Trading Education

Trading Expectancy: The Power of an Edge

Trading Expectancy Power of Edge

When you first started to trade, how did you judge your results?  If you're like most novice traders you likely had little understanding of the concept of trading expectancy, so you focused almost entirely on your win rate in the early days.  You were probably trying to win 80 or even 90 percent of the time and it was a constant struggle.  You may have been able to achieve it for a short period of time, but your small wins just couldn't cover the big losses and once you hit an "unlucky" string of losing trades you just couldn't recover. Read more

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My Decision to Become a Day Trader

Thailand Beach Featured

For me, day trading has always been about one thing - freedom.  I wanted to have the freedom to be able to work when I chose, without employees or a boss, from anywhere in the world.  Having that kind of lifestyle flexibility is something that almost everyone says they want, but few have taken even the smallest initial steps towards that goal. Read more

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Building and Refining Your Trading Edge

Your Trading Edge Sword

It's simple - if you don't know what your trading edge is, then you probably don't have one.  If that's you, then you are basically a gambler because you're most likely allowing the market to hold the edge and are hoping you can beat the odds.  Even if you get lucky and start off strong in your trading career, the combination of a negative trading expectancy and limited equity means that the market is probably going to win in the long run.  If you're serious about making it in this business, this isn't the kind of professional approach you want to have.

On the other hand, being a trader is all about having a structured and profitable methodology where you know your edge in the market exists through both historic and real-time testing.  The trader knows he has a winning edge as long as he sticks to his plan and executes with consistency. Read more

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Why You DON’T Want to Be A Pattern Day Trader

SEC Pattern Day Trader

One thing I get asked all the time is if futures day traders (like those at Samurai Trading Academy) are impacted by the Pattern Day Trader Rule that applies to those trading stocks or options.  The simple answer is no, because by their very nature futures contracts are short-term due to their expiration cycle.  This difference on it's own is a huge advantage of trading futures over other the other markets out there. Read more

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© Copyright - Samurai Trading Academy - RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.

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