Lesson 1: Risk Management is Your Foundation As your trading mentor, my first priority is to help you build consistency in your risk management. Think of it as the cornerstone of your trading house. Keeping your dollar risk per trade steady is not just about protecting your account; it’s also about protecting your mindset. When… Read More »
When traders struggle with their psychology, it’s easy to assume that the problem lies entirely within the trading environment—stress from market fluctuations, the pressure to perform, or the difficulty of managing emotions during high-stakes trades. However, sometimes these trading-related challenges are symptoms of larger, underlying issues that go beyond the markets. How can you tell… Read More »
In the world of trading, psychology plays as much of a role in success as strategy and analysis. While charts and numbers might appear to drive market moves, underlying psychological factors can make or break a trader. Here, we dive into nine common psychological pitfalls, highlighting how they can disrupt your trading and offering ways… Read More »
When many of us think of probabilities, the first thought that comes to mind is a coin toss—having a 50% chance of being correct on a given toss. Can something as simple as a coin toss be applied to investing in financial markets? Probabilities, as with a coin toss, can indeed provide us with tools… Read More »
All market traders, regardless of their experience or market type, experience fear at some level. It’s natural to feel unsettled when you hear news of an unexpected market selloff. However, successful trading, particularly in market timing, hinges on how we prepare to handle these fears. It’s not about avoiding risk but learning to manage it… Read More »
Once upon a time, there was a young woman named Yun Ok who found herself deeply troubled. Her husband, who had once been a loving and kind man, had returned from war a completely different person. The gentle husband she had known was now angry, irritable, and unpredictable. Yun Ok barely recognized the man she… Read More »
Tenali Ramakrishna, fondly remembered as Tenali Rama, was a 16th-century court poet at the Vijayanagara Empire in India. He hailed from a town called Tenali. He is remembered even today for his extraordinary wit, brilliance and wisdom. What is it that we want in life? We may have a long list ready – ranging from… Read More »
Before diving into the world of trading, it’s essential to have a well-thought-out business plan, especially if you’re planning to make trading your full-time occupation. This plan should address several critical questions, such as: How much capital do I need? What will be my expected annual rate of return? How much can I afford to… Read More »
Introduction: Trading in financial markets can be incredibly rewarding, but it also comes with significant risks. Whether you are a beginner or an experienced trader, avoiding common mistakes can mean the difference between success and failure. This blog post delves into the top 10 mistakes traders often make and offers practical advice on how to… Read More »
I recently received an email from a reader of my blog, asking a question that resonates deeply with many traders: “What’s the most effective way to break bad habits? I’m working as a full-time trader and have strict rules of risk management. I’ve learned the rules, but I can’t seem to stop making mistakes because… Read More »