Reblog: Why Mirror Trading Is A Bad Idea


Mirror trading is the act of simply copying or ‘mirroring’ a different person’s trades. The idea is that one should be able to simply copy the action of a successful trader, and then reap the same rate of success.

As simple and intuitive as this proposition sounds, mirror trading is actually a bad idea. Even if someone were to closely follow the actions of a consistently successful trader, the inherent delay between the original trade and the mirror trade leads to reduced profits on successful trades and expanded losses on unsuccessful ones.

Mirror Trading and Timing

The most difficult aspect of trading is timing. Identifying good trades is a necessary first step, but the actual execution itself is the most challenging part of trading and will be the final determinant of the rate and degree of trading success.

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stockarchitect June 25, 2018

Mirror Trading / Ross C / Warrior Trading / warriortrading.com /

Reblog: Mark To Market Definition: Day Trading Terminology


Mark to market refers to an investment measure or accounting tool used to record an asset’s value to reflect the market value of the security rather than its book value.

The tool is commonly used on futures accounts and helps to ensure that all margin requirements have been completed. When it comes to mutual funds, mark to market refers to how a fund’s net asset value is calculated every day based on the underlying investment closing prices.

Why It’s Important

In security trading, when a portfolio or investment is marked to market, then its value is usually changed in order to reflect the current market price. Investors usually take advantage of this when they are holding a position through the end of the year. Instead of being forced to close it out to realize a loss or gain, you can simply to choose to mark to market the position which will establish the position at the market price for when you file your taxes.

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stockarchitect June 6, 2018

Day Trader / Day trading / Definition / Mark to Market / Ross C / warriortrading.com /

Reblog: How To Trade Thin Markets


A thin market refers to a market characterized by a minimal number of buyers and sellers plus high price volatility. Also referred to as a narrow market, it is also characterized by high bid-ask spreads and low trading volume.

This type of market does experience lots of drastic swings thus making it difficult for traders and investors to trade systematically. As a result, it is quite common in a thin market for price fluctuations to be larger between transactions and slippage can be a common occurrence.

As said earlier, a thin market is characterized by a small number of traders – buyers and sellers- which results in a low volume of transactions and illiquidity. Due to this, price movement becomes more volatile.

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stockarchitect June 4, 2018

Day trading / Ross C / Thin Markets / Warrior Trading / warriortrading.com /