Category Archives: Learn
S&P 500 Completes megaphone pattern
Back on October 13, when the stock market was in free-fall, I prepared this chart showing a potential megaphone pattern. With major indicators (such as the MACD and stochastics) looking decidedly bearish, the idea that a rally would soon return the S&P 500 to the 2,030 area seemed crazy: Three weeks later–ding-ding, we have a winner!… Read More »
Traders: When to be Flexible & when to be Rigid
Traders should have a very flexible mindset about which way a trade can go when they enter it, but be very rigid about taking their stop loss when it is hit. Traders should be very flexible on profit expectations during each market cycle but very rigid about following their robust method during each cycle. Traders… Read More »
Dealing With Trading Losses
By embracing a loss, really feeling it, I tend to have less fear about a potential loss the next time around. If I can’t get over the emotions of taking a loss in twenty-four hours, then I’m trading too large or doing something else wrong. Also, the process of rehearsing potential losses and confronting actual… Read More »
Signs of Stress for Traders
Markets have been particularly volatile recently, at least for intraday traders and daytrading can create a significant amount of stress. Because our bodies are designed to adapt to stress, we may fail to realize that we are stressed out. Here’s an inventory of common trader behaviors that may signify excessive stress. Signs of Stress A… Read More »
Therapy for Traders to overcome loss
An experienced trader writes to me: “I am having a good year trading but today marks the THIRD TIME this year that I’ve made a critical error which goes against my whole philosophy of trading. I am a trend trader. That is how I make very consistent gains regardless of what the market is doing…I… Read More »
How to increase Trading Size
How to increase Trading Size The Biggest Problem that the traders face, according to me, is increasing TRADING Capital & Quantity. There is a general feeling amongst the Traders that More the Quantity, more the profits. That’s true in a sense but have u ever wondered if u are really ready for those kinds of… Read More »
Emotions That Are Hazardous to Trading
As humans, we can’t totally divorce ourselves from emotion, but if we can learn to control them better, we should have better trading results. The psychology of investing not only affects individual investors but also affects the market as a whole. Many investors often underestimate or are unaware of the affects that our emotions have… Read More »
Trader’s Assest
The game taught me the game. And it didn’t spare the rod while teaching.” -Jesse Livermore Trading Losses: There are two types of losses, one loss is caused by the market simply not being conducive for the profitability of your system. The other loss is due to your lack of discipline causing your system not… Read More »
Thinking of an amateur trader
India Stock market are going through a Bull phase and is the best performing market for 2014. As market keep rising every day many traders are getting attracted towards it making fast bucks. Today we are discussing the thought process of new trader and the corrective steps which traders should start implementing before their trading… Read More »