One of the best ways of understanding your trading–and your trading psychology–is to collect data on your trading. There are many metrics available for understanding your trading patterns (see the links below), but here are a few unusual metrics that I’ve found to be especially illuminating: 1) P/L for Your Largest Trades – When you’re… Read More »
The most profitable trading strategies are innovative. You cannot merely follow the crowd or think conventionally if you plan to make profits in market after market. You have to sift through information on your own, and in the end, you must trust your instincts and go your own way. It takes courage, willingness to take… Read More »
Any quick drive through Las Vegas makes it pretty clear who is rolling 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 »
In Continuation with previous post Screen-time won’t help you You will often read that traders have collected so much screen-time over the years that success has to be around the corner. Think of it this way: You have probably watched hundreds of top movies and TV-Series, but you are neither a professional director nor… Read More »
When you listen to traders talking they throw around technical terms and sound really smart: VIX, implied volatility, DJIA Fractal match, XLV Call Ratio Spread, Adverse Excursion, intermarket analysis, Asset Swapped Convertible Option Transaction, Risk-Adjusted Return On Capital… But when it comes to actual trading, traders don’t walk their talk. Even worse, it seems that… Read More »
It does not matter whether you are reading sophisticated trading books or just browse around online trading forums, almost every trader seems to be aware of the fact that psychology has a big impact on trading performance. However, the way emotions affect trading decisions are very complex and not that obvious at the first glance.… Read More »
Setting a goal and planning how to achieve it can help traders push past their fears. Setting up goals will make sure trader learns from his mistakes. Trader will study both winning and losing trades to understand what went right and how he could improve on his technique. Over time, trader will be able to… Read More »
Everyone says that psychology is the most important part of trading. So if trading is 80% psychology, what makes uppsychology? 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. A disciplined trader gets consistent results… Read More »
There are really four types of trades Good Trade Bad Trade Winning Trade Losing Trade Most people think that a losing trade was a bad . That is absolutely wrong. You can lose money even on a good trade. If the odds on a trade are 50/50 and the payoff is 2 versus a 1… Read More »
You look at mountain ranges and see 5-wave structures and 61% retracements. You look at the night sky & see a hammer pattern instead of the Big Dipper. You know that Head and Shoulders isn’t referring to a shampoo. You go to the bathroom during market hours and it costs you Rs 50000.… Read More »