“The physician has to spend long years learning anatomy, physiology, material medical and collateral subjects by the dozen. “He learns the theory and then proceeds to devote his life to the practice. He observes and classifies all sorts of pathological phenomena. He learns to diagnose. If his diagnosis is correct – and that depends upon… Read More »
Conducted by Edwin Lefevre, dated circa 1922, this “interview” reveals great insights into the mind of the famous trader. As we will see, the wisdom imparted here could change our entire perspective on the speculative game we love and enjoy. It might even change our lives. I took the liberty of editing it due to… Read More »
Most traders realize that trading involves a lot of psychology. And most traders readily admit that a significant portion of their trading losses, or lack of performance, is due to “psychology”. Although the term ‘psychology’ isn’t always mentioned as an explanation, you can see it easily enough in the following statements ”I froze just as… Read More »
Awareness is the first step towards improvement and that is why we collected the 44 most common mistakes a trader can make. Making mistakes is not bad at all and it is part of the process, but when mistakes are made repeatedly, bad and unprofitable habits are formed. The more bad behavior you can eliminate… Read More »
There are very predictable stages in any traders trading cycle.They are as under : 1) Total beginner stage : We all started with this stage,we make some money on stocks or Options bought on tips and recommendations of someone and feel that this is a good way of earning some extra income,quick and easy money… Read More »
In Continuation with previous 2 article Ed Seykota’s Trading Style Part-I Ed Seykota’s Trading Style Part-II Ed Seykota’s Trading Style Part-III Embrace Whipsaws Trading Systems don’t eliminate whipsaws. They just include them as part of the process. Do Not Predict Or Anticipate A computer can follow a system and place orders without making predictions… Read More »
In Continuation With the Previous Ed Seykota’s Trading Style Part-I Risk Below 5% of Equity Per Trade I intend to risk below 5% on a trade, allowing for poor executions. Occasionally I have taken losses above that amount when major news caused a thin market to jump through my stops. Risk no more than you… Read More »
Ed Seykota’s Trading Style My style is basically trend following, with some special pattern recognition and money management algorithms. In order of importance to me are: (1) the long-term trend, (2) the current chart pattern, and (3) picking a good spot to buy or sell. Those are the three primary components of my trading. Way down in… Read More »
How could an experienced trader lose his entire fortune? Why didn’t Jesse Livermore follow his own trading rules? – rules that should quickly have closed his losing positions. In 1917, with great foresight, Jesse Livermore had bought $800,000 worth of annuities. His objective was to ensure his family had an income in case he lost… Read More »
ODDS ARE AGAINST YOU BEING A SUCCESSFUL TRADER Sorry to burst your bubble but failure is the highest probable outcome for most in this business. Failure doesn’t come because the markets are “rigged” or the belief that “they” are monitoring your odd lot trades to take the other side only to cause you pain in… Read More »