1) Capacity for Prudent Risk-Taking – Successful young traders are neither impulsive nor risk-averse. They are not afraid to go after markets aggressively when they perceive opportunity; 2) Capacity for Rule Governance – Successful young traders have the self-control needed to follow rules in the heat of battle, including rules of position sizing and risk management; 3) Capacity for Sustained… Read More »
Capital flows from those who fight trends to those who follow them. In the long term money flows to those who manage risk and are able to hold on to their profits from those who don’t manage risk. Traders that persevere through the learning curve stick around long enough to make money from those that… Read More »
The stock and commodities markets are more efficient at matching supply and demand than almost any other market. Despite the efficiency underlying trading, the markets are also dominated by human emotion and psychology. From the same information buyers and sellers can reach different conclusions, so the trader needs to know why someone would be on… Read More »
90% of the mental game being trading well; So here are three trading practices that reliably lead to emotional disruption: 1) Poor risk management – Oversized positions; holding positions that are more correlated than you realize; failing to clearly define and trade a risk/reward relationship for each trade–all of these create outsized losses, which in… Read More »
“For every style of trading there will be a “perfect” market environment. When the market is aligned to the strategy that you are trading, every trade will work itself out smoothly, losses will be far and few between, and you will feel on top of the world as you watch your profits accumulate! ……Sooner or… Read More »
Traders must have the perseverance to stick to trading until they break through to success. Many of the best traders are just the ones that had the strength to go through the pain, learn, and keep at it until they learned to be a success. Great traders cut losing trades short. The ability to accept… Read More »
The goal of a successful trader is to make the best trades. Money is secondary.” ==== Money is secondary? What the hell? Is Alexander joking? Well, if we take some time and analyse this quote, Mr Elder has a very important point to make. How can good trades be better than money ? Why are… Read More »
You have to be willing to make mistakes regularly; there is nothing wrong with it. “My Guru taught me about making your best judgment, being wrong, making your next best judgment, being wrong, making your third best judgment, and then doubling your money.” “It doesn’t matter how often you are right or wrong —… Read More »
If you ever met a successful trader one thing you would have noticed most of them in some part of there life were related to sports. What’s the connection between being an sportsman and stock market trader? I believe it has everything to do with the qualities and the mindset that these individuals have. I… Read More »
When we speak of “The Trader’s Mindset” what are we really talking about? Many of my studentsoften ask me this question and we talk about it a lot with traders I mentor. When we trade the markets we approach the markets each and every day with a psychological mindset or set of beliefs and emotions.… Read More »