Amateur retail traders tend to think that the professional traders have some sort of secret knowledge/system that enables them to make huge profit in trading. However, the difference between a retail traders trying to make consistent profit and a professional traders zeros down to the trading mindset and trading psychology. Let us give you an… Read More »
Everyone says that psychology is the most important part of trading. So if trading is 80% psychology and I believe psychology can be broken down into two parts: patience and discipline. This article focuses on discipline, and why it is so essential to your trading success. For Consistent Results We need to be Disciplined both… Read More »
Trading is Difficult as most traders don’t have an “EDGE”. Is Trading Hard to Learn ? It takes time, discipline, the correct education and the right attitude. Most people fail in trading not because it is particularly hard, but because they are not properly “EDUCATED“. Learning to trade is investing in your education and your financial future. Learning to trade is… Read More »
1. Never Average a Losing Position — Under any circumstance add to a losing position ever! Always Remember Averaging Bring the cost down but it increases trade size which can lead to Ruin of trading account.Holding to losing positions costs measurable sums of actual capital, but it costs immeasurable sums of mental capital. 2. Trade… Read More »
The winning trader is cold, calculating, and unemotional. Fear and greed control the masses, but if they are allowed to control you, you become one of the millions who can’t understand why they cannot make a profit when, supposedly, everyone else is. There are also other emotions, such as anger and disappointment, that can influence… Read More »
Man’s seasonal trend changes just as the market and he has his good and bad cycles. By keeping a record of your own trades, you can determine when your trend is changing one way or the other. I have been able to make as many as 200 consecutive trades without a loss. When I started… Read More »
1. 10,000 hours The greatest traders understand that trading much like being a doctor, engineer or any other focused and technical endeavor requires time to develop and hone the skill set. Now you wouldn’t see a doctor performing open heart surgery after 3 months on a surgery simulator. Why would trading as a technical undertaking… Read More »
When trading goes right, it can be a great feeling. When trading goes wrong it can be a nightmare. Fortunes are made in a matter of weeks and lost in a matter of minutes.This pattern keep repeating itself again and again.For a trader to be successful he must acknowledge this pattern and then break it.… Read More »
All traders should have a good trading plan. One of the worst bad habits a trader can have is trading impulsively and without any guidelines. Traders who take the time to make a trading plan are much more likely to succeed, but even with a plan in place we can develop bad habits. A trader… Read More »
At the broadest level, trading consists of analyzing, synthesizing, and doing. Analyzing is extracting information from markets, immersing ourselves in data. It is our look through the microscope. Synthesizing is assembling those data into a coherent picture, extracting pattern and meaning from the reams of market information. It is our telescopic view. Doing is taking… Read More »