Your biggest enemy, when trading, is within yourself. Success will only come when you learn to control your emotions. Edwin Lefevre’s Reminiscences of a Stock Operator (1923) offers advice that still applies today. Caution Excitement (and fear of missing an opportunity) often persuade us to enter the market before it is safe to do so. After a… Read More »
1. The four trading fears 95% of the trading errors you are likely to make will stem from your attitudes about being wrong, losing money, missing out, and leaving money on the table – the four trading fears 2. The proverbial empathy gap You may already have some awareness of much of what you need… Read More »
There is a big difference between a trader and a gambler. Many people think they are traders when they are really just gamblers that could get better odds in Las Vegas betting on the roulette wheel than what they get in the Stock markets. The difference between a trader and a gambler is similar to… Read More »
I firmly believe that what truly separates the 5% of winning traders from the 90% that lose and 5% which are at breakeven is the “Trader’s Mindset”. The vast majority of traders think they want to trade until the losses hit them over and over and they just can’t mentally and emotionally handle it and… Read More »
Amateur Trader accumulate information, learn- buying books, asking questions, maybe going to seminars and researching what really works in trading. Amateur Trader begin to trade with our ‘new’ found knowledge. Amateur Trader make profits only to give it back very quickly and then realize may need more knowledge or information. Amateur Trader accumulate more information.… Read More »
1). Preparation Professional Trader #1 priority in trading is risk managment. Professional Trader believes that once you get your trading system and position size in place you must use the amount you will risk on each trade to determine your risk of ruin. His point is that if your risk of ruin is not zero… Read More »
Most of the time, markets are very close to efficient (in the academic sense of the word.) This means that most of the time, price movement is random and we have no reason, from a technical perspective, to be involved in those markets. There are, however, repeatable patterns in prices. This is the good news; it… Read More »
*Everyone has a stop-loss level: For some, it’s a price; for others, it’s a pain threshold. * It’s not stress and emotion that get in the way of trading; it’s the stress and emotion that results when trading becomes personal: about you, rather than about supply and demand. * The measure of a trader is… Read More »
In this article, we attempt to look at the psychological elements of trade, risk, and money management as presented in the Successful Traders research series. The goal of trading is to make money by forecasting future price movements.This is inherently difficult because, as human beings, we cannot tell the future. Surely many new traders analyze… Read More »
Any quick drive through Goa Casino makes it pretty clear who is making in the money – the Casinos! Why do gamblers keep going back despite losing most of the time? Misplaced hope, fantasies about the big win, promising themselves they will walk away when they are up and still winning, and probably the inability… Read More »