1. “Money is made by sitting, not trading.” 2. “It takes time to make money.” 3. “It was never my thinking that made the big money for me, it always was sitting.” 4. “Nobody can catch all the fluctuations.” 5. “The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall… Read More »
Traders jump from trading strategy to trading strategy. Traders must find specific methodologies and systems and focus on trading them with discipline. Position sizing is too big. New traders tend to trade so big that it engages their emotions to interfere with the trade and creates big losses that destroy their capital. They… Read More »
What is the overall direction the market is moving with in your time frame and the larger time frame? What time frame will you be trading with your next trade? What is your entry signal and what is its historical performance as a winning set up? How much money will you risk… Read More »
In this cutthroat world we live in, we often follow the motto, “The ends justify the means.” Blind ambition, self-sacrifice, and extreme self-control are valued. If you can work tirelessly, wait long enough, and quickly recover from endless setbacks, you’ll be one of the select few who survive and reap the rewards. It’s true in… Read More »
LET THE MARKET BE YOUR BOSS. Hold your opinions loosely and your discipline tightly. Trade in the direction of the trend for your time frame. Be quick to admit when you are wrong but hold your winners for as long as they keep going in your favor. You stop trading your plan and start… Read More »
“I think successful trading, or poker playing for that matter, involves speculating rather than gambling. Successful speculation implies taking risks when the odds are in your favor. Just like in poker, where you have to know which hands to bet on, in trading you have to know when the odds are in your favor.” –… Read More »
Recently During my training session trader asked me the following question: How to cope and manage the stress that comes with trading. I have been able to cope with the stress for a while now, but in times of market volatility I have more trouble with dealing with stress and it spilling over into… Read More »
1. Traders must be great risk managers. “At the end of the day, the most important thing is how good are you at risk control.” -Paul Tudor Jones 2. Traders must manage their own stress. Trade position sizes that keep your stress level manageable, if you can’t talk calmly to someone while trading you are… Read More »
Every day money flow from trader to trader, from market to market. Many traders are just happy to dip their bucket in and take a share each day for themselves. But where does the money flow? Every day options lose time value, options sellers blow up, shorts cover for a loss, trends take place, people… Read More »
Rules that I can live by: my rules have to be rules that I stand a good chance of keeping, not the kind that I will follow for one day and then give up the next. I’m not the kind of trader that can follow rules mechanically, like if x happens 3 times then do… Read More »