“Good fortune is what happens when opportunity meets planning.” —Thomas Jefferson “Reduce your plan to writing. The moment you complete this, you will have definitely given concrete form to the intangible desire.” — Napoleon Hill “He who fails to plan, plans to fail.” However you want to look at it, or whomever you may want… Read More »
Must read for every kind of trader. Enjoy your weekend! What separates the 10% that make money from the 90% that don’t? 10,000 hours. The key to success in any cognitively complex field is, to a large extent, a matter of practicing a specific task for a total of around 10,000 hours. 10,000 hours equates… Read More »
Structure your position sizes and stop losses in trades so that if you are wrong you will not lose more than 1% of your trading capital on any one trade. Reducing your risk per trade to 2% of trading capital would be a huge… Read More »
A sideways market? A trending market? A trend continuing; A trend reversal? Getting stopped out of a trade? Winning a trade? Breaking even? Losing a trade? All questions that need to be answered if you are to have confidence in your trading system. For it is confidence that allows you to profit from the markets. Ridiculous notion? … Read More »
Trading offers a wide world of opportunities to traders new and experienced alike. It’s unfortunate, but trading profitably with any level of consistency often takes time and effort for a trader to develop their approach. Along the way are many hurdles and perhaps even more unfortunately, quite a few of those hurdles can be self-imposed.… Read More »
A trader must have quantified entry signals that tell them when to enter where the probabilities of success are in their favor of being profitable. A trader must build a robust trading system with a positive expectation model of a high winning percent of trades or one that will have bigger wins than losses… Read More »
In all my years of trading and talking to fellow traders, I have noticed that newbie traders are susceptible to four main psychological pitfalls. Let’s take a look at each one and examine them carefully. Hopefully, after reading this, you will be able to see them coming and stop them before they destroy your account.… Read More »
In 1968, a self-described “gun-slinging nitwit,” fresh out of Harvard Business School, Grantham played the go-go market at its peak. By 1970, he had lost all of his money. “I like to say I got wiped out before anyone else knew the bear market started,” Grantham recalled years later. Think about that. The man who… Read More »
1. “Money is made by sitting, not trading.” 2. “It takes time to make money.” 3. “It was never my thinking that made the big money for me, it always was sitting.” 4. “Nobody can catch all the fluctuations.” 5. “The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall… Read More »
Traders jump from trading strategy to trading strategy. Traders must find specific methodologies and systems and focus on trading them with discipline. Position sizing is too big. New traders tend to trade so big that it engages their emotions to interfere with the trade and creates big losses that destroy their capital. They… Read More »