Put a trader in a group of non-traders and the conversation will inevitably turn to gambling. At a recent family gathering I was asked about my share trading by an interested (or polite) family member, to which I responded with my usual cheery, ‘Good thanks!” I had just mentioned that we were planning on selling… Read More »
What is Risk? Risk is exposure. In trading, risk refers to exposure to the price changes of a stocks/index. Often, risk makes people wary of trading stocks, commodities, or currencies. It is true that risk is an integral part of every trade. In other words, there is no such thing as a “risk free” trade.… Read More »
As people get into this great business of trading, many are exposed to a heck of a lot misinformation. So, that being said, let me lay out what I truly believe are the 5 keys to a profitable trading methodology: Reliability. This basically means at what percentage of the time do you actually make money? … Read More »
They trade too much. A major edge small traders have over institutions is that we can pick our trades carefully and only trade the best trends and entries. The less I trade the more money I make because being picky is an edge, over trading is a sure path to losses. Unprofitable traders tend… Read More »
How you prepared for the day/week: What was your market preparation? What research did you conduct or consume? What did you read? What conversations did you have, and with whom? How did you eat? Sleep? Exercise? Prepare yourself mentally? * How you generated your trading ideas: Where did the ideas come from? What was the process… Read More »
I keep Blue Channels turned off while trading. I do not care about others opinions I care only about price and chart action. I do not try to predict, instead I trade in accordance with the chart. I am not trying to prove I am right I am trying to make money. I am not… Read More »
Your biggest enemy, when trading, is within yourself. Success will only come when you learn to control your emotions. Edwin Lefevre’s Reminiscences of a Stock Operator (1923) offers advice that still applies today. Caution Excitement (and fear of missing an opportunity) often persuade us to enter the market before it is safe to do so. After a… Read More »
1. The four trading fears 95% of the trading errors you are likely to make will stem from your attitudes about being wrong, losing money, missing out, and leaving money on the table – the four trading fears 2. The proverbial empathy gap You may already have some awareness of much of what you need… Read More »
There is a big difference between a trader and a gambler. Many people think they are traders when they are really just gamblers that could get better odds in Las Vegas betting on the roulette wheel than what they get in the Stock markets. The difference between a trader and a gambler is similar to… Read More »
I firmly believe that what truly separates the 5% of winning traders from the 90% that lose and 5% which are at breakeven is the “Trader’s Mindset”. The vast majority of traders think they want to trade until the losses hit them over and over and they just can’t mentally and emotionally handle it and… Read More »