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Home / Author – Moritz

Author – Moritz

MoritzCBelow, you find all articles written by Moritz. Just click on the title or the image to read the full article.

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A pullback is not just a pullback. There are different kinds of pullbacks. They can all be classified into channels – expanding, condensing, symmetrical, their angle either against the trend or with the trend. Inside those channels, we get different opportunities to re-enter in the direction of the trend. We can play breakouts, bounces from…
24 Comments
Psychology
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Maybe when reading the title of this article you might have thought I went complete bonkers now, and maybe I have! Who can say what is sane and what isn’t, anyway. Nevertheless, thank you for the next 5 minutes of your time, I promise you won’t regret it. I have always been fascinated by the…
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Wonderful New Year’s greetings to everyone from Shanghai! I have spent the last 10 days with my parents, sightseeing, eating like a pig and drinking like a fish, far away from any screen and/or chart. I had a lot of time to reflect on 2016 and to think about what I want to achieve in…
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Inspired by this brilliant StockTwits podcast with Peter L. Brandt, today I want to present you an article that will shed some light on how far you should actually take your perfectionism in trading. To make it short and painful: there is no perfect trading strategy. You will have to deal with losses. Yes, there…
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Contents in this articlePrice Action Chart Patterns1-2-3’sHead & ShouldersDouble & Triple Tops / BottomsPrice Action ChannelsBottom / Top Of The BucketFakeoutsTriple Taps (with divergence)TrianglesPrice Action Confluence ToolsSupport & Resistance LevelsSupply & Demand Levels(Inner) TrendlinesFibonacci Retracements & ExtensionsBollinger BandsTrade ExamplesConclusion In my swing trading strategy, I trade exclusively pin bars and outside bars found on 4H+.…
45 Comments
Psychology
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Continuing with our series about psychological pitfalls in trading and life (read my previous article: You are responsible for everything that happens to you), today we are going to talk about one of my favorite topics: values, self-perception, and self-sabotage. This is a very delicate topic because many of you will feel personally attacked when…
3 Comments
Psychology
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Inspired by a recent re-read of “Trading In The Zone” by Mark Douglas and the first read of Mark Manson’s “The Subtle Art Of Not Giving A Fuck” (highly recommended), I got the idea for this article. Funny enough, the same message can be derived from both books to boost our trading to new heights.…
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In trading, it is very easy to make our life harder than actually needed. Most people, instead of picking the easy ones, try to fight the market for whatever reasons, and as a result, overtrade, and get into trades that are hard to manage, thus they make more mistakes, leading to worse results and tilt,…
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Dear readers of this site, I want to address a few words to you, in all honesty, today. I wanted to do this for a while now, and I wrote a similar post years ago to the people of my first trading group (which I was being a member of, not the host). This site…
4 Comments
Statistics
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We very often get the question “how do I know that my strategy works?” and there is actually an “easy” answer to that. It all boils down to one question, and that is, what is a sufficient sample size to assess the performance of a strategy? However, as in trading, we are treading in the realm…
14 Comments
Psychology
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…and also the one reason for all the pain we suffer. It is a very human concept, very transcendent, yet it somehow exists physically (at least according to good old Einstein) – and changes everything with every moment that passes by. It is called time. I treat time like cancer. It is a chronic disease…
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So you want to be a professional trader? Have you made up your mind what exactly that entails, how your day will look like, and what style you are going to be trading? Daily charts, 4-Hour charts, tickcharts? How much time are you going to invest, what will your preparation and postprocessing look like? Where…
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When I started out trading, there were two common “wisdoms” that absolutely confused me for a very long time. Only take the easy trades The best trades are the hardest ones to take Those two statements are very contradicting yet they pop up in a lot of trading books and every trader seems to have…
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I am not a fan of automated strategies. When banks and trading firms throw millions and millions of dollars at their geeks, trying to come up with sophisticated self-learning algorithms that take money out of the markets, how do you ever want to make money with a self-developed trading robot or a so-called “Expert Advisor”?…
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When I started out trading, all I knew about were time-based charts. It took me years to even hear or think about that there might be other types of charts to be used that are much more advantageous, especially to day traders, than time-based charts. This is because MetaTrader4, which most Forex traders use when…
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Everyone knows the H&S pattern, as it is the most talked about even on financial TV when so-called “experts” analyze the S&P 500 for you to make (lose) money. The classic approach to this pattern is to enter it at the break of the neckline, as seen here: On this entry method, the stop usually…
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Everyone says you need a sizable account before even thinking about trading for a living. While I agree, as pressure to make a certain sizable return each month will mess with your decision making ability, the ways to actually acquire that account in the first place are many. One of these ways is smart but…
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When I (Moritz) came into trading, I was – as so many – dragged into the Forex markets. Their advertising is all over the place, their forums are the biggest, they have the biggest and easiest brokers to access, and the market overall is badly regulated, making it easy to open accounts. Additionally, you can…
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Coming from a Poker background, I have seen a lot of other gambling businesses as well, apart from trading: sports betting, prop betting, roulette and all the other casino games that you play versus the house, and so on. They all play very differently, yet they have one thing in common: an existing edge can…
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In trading, everyone always wants to complicate everything – why? Simply because having 8 screens with a lot of blinking lights is what we see on TV whenever we hear the word trader. Now while some of the infos these people in the pit, or wherever, have on their screens are certainly beneficial, I promise…
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Sometimes in my trading career, I have been lost among the trees. My charts were so cluttered I could not make one clear decision, yet produce one valid trade idea that I liked. Everything was gibberish, paralysis through analysis. Whenever I got a signal in one direction, other things I learned and watched gave me…
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No matter what you do, minimizing your risk and covering your ass(ets) should always be your first priority in anything you do related to trading. I never think about how much I stand to make when I first look at a trade idea, I always look at the risks first and search for reasons NOT…
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There are many reasons to stop system hopping, but the one that always made the most sense to me is the one most overlooked. Just as markets have their periods of upswings, downswings, and consolidations, so do systems that perform better in trending or consolidating markets. So one could say that your equity curve actually…
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There are plenty of markets out there to choose from. Most people randomly choose a market because they heard from a friend that it trades nicely, or they saw the SPX500 on TV. While it is true that, for example, futures move differently than Forex, and that it pays off to get to know a…
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I have a small notebook in which, over the years, I wrote down every time I heard something about trading that just made a lot of sense to me, or that enlightened me, or when I myself had a lightbulb moment. Today I want to share some of these wisdoms with you, unfiltered and raw.…
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Trading is a very personal, intimate thing. There is no one size fits all. A strategy that works very well for one person is not going to work for another person – not even if it is 100% technical, as waiting for the perfect conditions to enter a trade, the conditions themselves, and the time…
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“At the table, you are your own worst enemy.” – Stu Ungar, the world’s greatest poker player. In front of the charts, you are your own worst enemy as well. Giving 100 people the same strategy will have 2 of them come out on top as profitable traders and the other 98 will blow their…
No Comments
Psychology
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In relation to my last post, today I want to give you a few reasons why trading is not inherently bad and hope to give you a few ideas to resolve your inner conflicts, which I am pretty sure many of you have when it comes to making money by taking money from others. Public…
1 Comment
Psychology
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I see so many traders fail unnecessarily. It hurts so much seeing them sabotage themselves over and over and over again and they don’t even notice it. One of the main reasons traders keep themselves from success is my favorite psychological concept called ‘cognitive dissonance.’ Basically, it means that you subconsciously hold two or more…
No Comments
Psychology
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As I said in a previous blog post already, I am always astonished by how few people actually read books and/or feed their brain with other things than Netflix and the evening news/gossip (essentially the same btw). Don’t misunderstand me, I don’t think that only reading scientific texts and never watching zombie heads go ba…
No Comments
Psychology
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Do You Need A Big Trading Account To Make It Happen? Short answer, yes. Undercapitalization, to me, is the biggest reason for people failing in this business. And Brett Steenbarger, a respected trading psychologist, agrees with me on that. That, and underestimation of business costs (=commissions). While discipline and diligence will bring you places, if you have little…

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