Category: Trading Tips
Short, practical trading tips from The Two Traders on risk, leverage, stop losses and building a repeatable trading process.
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Kelly Criterion in Trading: Why Full Kelly Is Too Much
The Kelly criterion in trading explained: the formula, a worked example, why full Kelly is far too aggressive and how fractional Kelly…
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Fundamental vs Technical Analysis: Which Should You Use?
Fundamental vs technical analysis for traders: what each looks at, which suits your timeframe, and a worked example of using both on…
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Gold Silver Ratio: What It Measures and How Traders Use It
The gold silver ratio explained: how to calculate it, what high and low readings mean, how a ratio trade is sized and…
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Commitment of Traders Report: Reading the COT Data
The commitment of traders report explained: what the CFTC publishes each week, the trader groups, how to read net positions and where…
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Dark Cloud Cover Pattern and the Piercing Line Explained
The dark cloud cover pattern and its mirror, the piercing line: the midpoint rule, how they differ from engulfing and harami, and…
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Tweezer Tops and Bottoms: Two-Candle Reversals Explained
Tweezer tops and bottoms explained: how close the highs or lows must be, where the pattern matters, and a full trade plan…
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Keltner Channel Strategy: Trend Bands Based on Volatility
A Keltner channel strategy explained: how the EMA and ATR bands are built, how they differ from Bollinger Bands, and how we…
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Opening Range Breakout: Trading the First Hour
Opening range breakout explained: how to mark the first hour high and low, when to enter, where the stop goes, and why…
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Dow Theory Explained: The Roots of Trend Analysis
Dow theory explained in plain English: the three trends, the phases of a market, what confirmation means, what the evidence shows and…
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Bull and Bear Traps: How to Spot a False Move
Bull and bear traps explained in plain English: why breakouts fail, how to tell a trap from a real move, where stops…