Stock Trading Emotions Emotions have no place in a day trader, swing trader, or even long term trader’s outlook on their investments. When we try and protect ourselves from fear, we end up resorting back to our habitual instincts to enter into a place of comfort, whether or not that place is reality. We stop… Read More »
Eric Barker has a new article (link here) on how to win every argument. The article had a point which made me think whether the same situation happens in trading. So it quoted an experiment by psychologist Drew Westen, which showed to supporters, footage of their favorite candidates completely contradicting himself. The experiment found that as… Read More »
As per my experience in trading for 10+ years , the biggest obstacles for trader long term survival is Managing risk in trading Trading on your trusted and winning trading strategy Even if you control your risk on every trade and have a trading strategy that is a winner in the long term you can… Read More »
Offense: You need big winners to pay for all your little losses. When the opportunity of a high probability entry happens you must take it. Or if you are trading a trend following system and are in a draw down you must keep trading in the direction of the trend so you will catch the… Read More »
In trading, you have two choices: Follow YOUR TRADING STRATEGY Fail. Any trader who consistently makes money in the market will tell you that unless you create and follow a plan, you will fail. If you are one of the few who have written a trading plan, you are off to a good start for… Read More »
Discipline your self: This is what helps one to gain in the market. When the market movements as per your trading setup asks you to enter, book profit or loss just obey it. Do not let your emotion enter here thinking you will beat the market. You can always enter the position later on instead of… Read More »
Through my reflections about how I made the turn from unprofitable to profitable trader I have been able to locate some of the specific changes in my train of thought that caused this to happen. I have realized that the way in which I approached trading changed slowly but surely into a way which allowed… Read More »
1. Ask yourself do you really want to take trading as a profession or You want to do trading as its the easiest way to make money ? Before you can develop persistence and eventually achieve success in the tough trading game, you need to first identify if this is truly what you want to… Read More »
In Continuation with Part -I 6. “Be like Machine” As human beings emotions pay a key role in our existence, for a trader emotions can be a source of great pain. Trading psychology and the management of your emotions in a trade play a key role in overall success. Fear and greed can cut your… Read More »
1. 10,000 hours In his recent book Outliers: The Story of Success, Malcolm Gladwell describes the 10,000-Hour Rule, claiming that 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 to around 4hrs a… Read More »