If you’ve been trading for a long time, you no doubt have felt that a monstrous, invisible hand sometimes reaches into your trading account and takes out money. It doesn’t seem to matter how many books you buy, how many seminars you attend or how many hours you spend analyzing price charts, you just can’t… Read More »
During one of my trading session, a student told me “Sir I am a small trader , I make good money in trending market but when market goes sideways/choppy i lose my profit and most of my trading capital”. I asked him, Do you know the difference between trending and choppy market, He said… Read More »
Only six percent of the people who attempt to become professional traders actually succeed. Why do most fail? Lack of passion When people come into the world of trading many think that they only need to learn a strategy and follow the rules of that strategy. And, there are some people who actually do this… Read More »
Trading is a very complex undertaking and if you miss one element you will likely eventually fail in this endeavor. Here are the four different elements we must have working for us for success in trading: The Knowledge If we don’t do the homework to know what we need to know we will fail due… Read More »
Every trader wants to trade a well funded trading account (i.e. a 1,000,000 account), but very few of us actually get to do this. Most traders are stuck with trading relatively small accounts (i.e. just covering the required margin). Trading a small account requires very strict risk management (i.e. money management) because there is no… Read More »
Rule No. 1- Do not venture in markets and products you do not understand. You will be a sitting duck. Rule No. 2- The large hit you will take next will not resemble the one you took last. Do not listen to the consensus as to where the risks are (that is, risks shown by… Read More »
Enter the “trader zone”…. wait, wait, wait, wait- pounce….. “A lone lion usually has a hunting success rate of only 15%. Though during a night hunt, their success rate can climb over 40% . In areas with tall grass, they manage a success rate of over 50% because they are able to get much… Read More »
It is funny how the best traders of all times basically repeat the same things with different words. Gerald Loeb is the author of ‘The Battle for Investment Survival’ and is one of the most quotable men on Wall Street. Here are 12 of the smartest things he has ever said about the stock market:… Read More »
“A trader is the weakest link of any trading system” (Alexander Elder) During one of my trading Seminar a student asked the following “After 4 years of winning and losing hundreds of trades and blowing out several accounts both demo and live, trying different systems, experimenting with many strategies, I am still unable to achieve… Read More »
Put a trader in a group of non-traders and the conversation will inevitably turn to gambling. At a recent family gathering I was asked about my share trading by an interested (or polite) family member, to which I responded with my usual cheery, ‘Good thanks!” I had just mentioned that we were planning on selling… Read More »