The Simple Trader (The Simple Art of Being a Trader) Copyright Michael Colantoni 2020 Principles A trend of any degree tends to continue in the same direction. The trend may pause or correct before continuing. Trends occur within trends. They are a function of time frame and degree. A single point on the chart, with … Continue reading The Simple Trader – Intro to Concepts (part 1)

Let’s analyse the implications of the Fundamental Equation and see what it tells us about trading successfully. The equation reads; r x S + R x F = P Probably, the more meaningful way to write it for someone focused on profit is: P = r x S + R x F Our primary goal … Continue reading Fundamental Equation of Trading (Part 2)

THE FUNDAMENTAL EQUATION OF TRADING Copyright Michael Colantoni 2020 R = Risk or loss when a trade fails (average for unsuccessful trades). A negative number. r = return or profit when successful (average for successful trades). E = Expectancy over many trades - expected average profit per trade over all trades. P = total profit … Continue reading Fundamental Equation of Trading (Part 1)

This blog has been prompted by a Twitter conversation over the last few days that requires me to respond in a much longer format than Twitter provides for. So I quickly set up this blog to accommodate that. There is a fundamental concept that determines one of the major, if not the most important, differences … Continue reading Probability versus Expectancy