Educational content. This is not investment advice, not a recommendation to trade, and not a promise of results. See our Disclaimer. Most active traders don't stay consistently profitable — the minority who do share three specific habits. Start with the honest base rate Most people who attempt active trading do not end up consistently profitable….
Educational content, not investment, legal, or tax advice. See our Disclaimer. Cash accounts vs. margin accounts, and the Pattern Day Trader rule that governs margin accounts under $25,000. Cash accounts vs. margin accounts A cash account only lets you trade with settled funds. As of May 2024, US equity trades settle on a T+1 basis…
Educational content, not investment advice. See our Disclaimer. Four order types, compared on speed versus price control. Market orders: fast, but blind on price A market order fills immediately at whatever price is currently available, with no price limit. On a stable, heavily traded stock the risk is small. On a fast-moving or thinly traded…
Educational content, not investment advice. See our Disclaimer. Level 1 shows the best bid and ask; Level 2 shows the depth of orders stacked behind that price. Level 1: the current best price, nothing more Level 1 data shows the single best bid (the highest price a buyer currently wants to pay) and the single…
Educational content, not investment advice. See our Disclaimer. From roughly 8,000 US-listed stocks down to a short daily watchlist, through a sequence of filters. Why scanning exists On any given day, only a small handful of US-listed stocks are experiencing an unusual, tradeable imbalance of supply and demand — the other several thousand are moving…
Educational content, not investment advice. See our Disclaimer. The catalyst hierarchy: not every reason a stock is moving carries the same weight or durability. Why the catalyst matters once a stock is already moving A stock scanner finds that something is moving; identifying the catalyst helps assess why, and why matters because different catalyst types…
Educational content, not investment advice. See our Disclaimer. Position sizing is a calculation driven by stop distance, not a round number picked by feel. Why this is the foundation, not a late-stage refinement A trader with a mediocre entry method and strict risk control can survive and improve over time. A trader with a great…
Educational content, not investment advice. See our Disclaimer. A stop decided before entry is a calm decision; a stop decided while already losing rarely is. The stop decided beforehand is a different decision than the stop decided while losing Deciding a stop-loss level before entering, anchored to a chart level or a fixed dollar risk,…
Educational content, not investment advice. See our Disclaimer. A trading journal entry, at minimum: date, symbol, setup, entry/exit, size, result, and whether the plan was honored. Why tracking trades isn’t optional Without a record of what was actually done — entry reason, setup type, size, result — a trader is relying on memory, which is…
Educational content, not investment advice. See our Disclaimer. Two emotional traps that erase otherwise sound strategy: revenge trading, and its mirror image, overconfidence. Why trading psychology gets underrated Most beginner education on trading focuses heavily on technical setups, order entry mechanics, and platform tools — the visible, teachable skill. The emotional side (fear of loss,…