Amateur Trader accumulate information, learn- buying books, asking questions, maybe going to seminars and researching what really works in trading. Amateur Trader begin to trade with our ‘new’ found knowledge. Amateur Trader make profits only to give it back very quickly and then realize may need more knowledge or information. Amateur Trader accumulate more information.… Read More »
1). Preparation Professional Trader #1 priority in trading is risk managment. Professional Trader believes that once you get your trading system and position size in place you must use the amount you will risk on each trade to determine your risk of ruin. His point is that if your risk of ruin is not zero… Read More »
*Everyone has a stop-loss level: For some, it’s a price; for others, it’s a pain threshold. * It’s not stress and emotion that get in the way of trading; it’s the stress and emotion that results when trading becomes personal: about you, rather than about supply and demand. * The measure of a trader is… Read More »
In this article, we attempt to look at the psychological elements of trade, risk, and money management as presented in the Successful Traders research series. The goal of trading is to make money by forecasting future price movements.This is inherently difficult because, as human beings, we cannot tell the future. Surely many new traders analyze… Read More »
“Good fortune is what happens when opportunity meets planning.” —Thomas Jefferson “Reduce your plan to writing. The moment you complete this, you will have definitely given concrete form to the intangible desire.” — Napoleon Hill “He who fails to plan, plans to fail.” However you want to look at it, or whomever you may want… Read More »
Must read for every kind of trader. Enjoy your weekend! What separates the 10% that make money from the 90% that don’t? 10,000 hours. 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… Read More »
Trading offers a wide world of opportunities to traders new and experienced alike. It’s unfortunate, but trading profitably with any level of consistency often takes time and effort for a trader to develop their approach. Along the way are many hurdles and perhaps even more unfortunately, quite a few of those hurdles can be self-imposed.… Read More »
A trader must have quantified entry signals that tell them when to enter where the probabilities of success are in their favor of being profitable. A trader must build a robust trading system with a positive expectation model of a high winning percent of trades or one that will have bigger wins than losses… Read More »
In all my years of trading and talking to fellow traders, I have noticed that newbie traders are susceptible to four main psychological pitfalls. Let’s take a look at each one and examine them carefully. Hopefully, after reading this, you will be able to see them coming and stop them before they destroy your account.… Read More »
In 1968, a self-described “gun-slinging nitwit,” fresh out of Harvard Business School, Grantham played the go-go market at its peak. By 1970, he had lost all of his money. “I like to say I got wiped out before anyone else knew the bear market started,” Grantham recalled years later. Think about that. The man who… Read More »