As a Trader it totally amazes me to see how we are almost “hard-wired” to do all the wrong things. It’s almost as if we were put on this planet to determine how many ways we can mess up our trading. How do you respond to a loss? How you respond to losing trade. During… Read More »
What are the common errors, the improprieties, the lack of attention to proper mores, the p’s and q of trading that cause so much havoc and could be rectified with a proper formal approach? Here are a few that cost one fortunes over time. 1. Placing a limit order in and then leaving the screen and… Read More »
Poor trading practice, poor execution, poor risk management and poor trade management, is responsible for much emotional distress. Trading affects our psychology as much as psychology affects our trading. Identify your greatest fears and face them as directly as possible, so that you find out they are not as powerful as they seemed. We are… Read More »
The language you use as a trader can provide either positive reinforcement through honest self awareness or negative results through demeaning self talk. In other words, when discussing your trading with others or in your journal become aware of how you view yourself. Do you see yourself as an amateur, a whipping post, a loser?… Read More »
01. Try to predict the future movement of a stock, and stay in it no matter what. 02. Risk your entire account on one trade with no stop loss plan. 03. Have a winning trade but no exit strategy to get out, no trailing stop or exhaustion top signal. 04. Ask for and follow the… Read More »
In Continuation with Previous Post Step 3 – The Eureka Moment Towards the end of stage two you begin to realize that it’s not the system that is making the difference. You realize that it is actually possible to make money with a simple moving average and nothing else IF you can get your… Read More »
Trading has been a heck of a journey for me. I came in for the money at first and now after all these years I’m still in but my motives have changed, I’m in for the game. Trading has been a long journey of self discovery for me, something I never even thought I would… Read More »
Trading can be a lot like gambling if you let it be so. Some of the best traders in the world are also great poker players, but there’s a big difference between how you trade and how people gamble. How can trading be gambling? What I’m talking about is the average trader out there that… Read More »
Know your Risk: The Risk-Reward Ratio Risk is a part of trading. Every trade carries a certain level of risk. Every trader must know the amount of risk that is being assumed on each trade. Knowing the amount of risk on each trade is one way to limit it and to protect your trading account.… Read More »
In Continuation of Previous Post Fatal Flaw No. 4 — Lack of Patience The fourth finger of the invisible hand that robs your trading account is Lack of Patience. I forget where, but I once read that markets trend only 20% of the time, and, from my experience, I would say that this is an… Read More »