1. Lack of direction. Traders often fail to establish clear goals and create plans to achieve those goals. When traders fail to develop complete business and trading plans before entering the market they are setting themselves up for failure. 2. Impatience. This occurs when traders try to accomplish too much too soon, or expect to get results far faster than… Read More »
Everyone knows that chasing price is usually not beneficial, we either end up catching the move too late, or we get poor trade location, which makes it more difficult to manage the trade. However, there are other forms of chasing that are just as common, maybe more common, and just as counter-productive. Traders who are… Read More »
If you had gotten out of the market when these movies were released, you’d definitely have missed some big moves…to the upside. Wall Street came out after the crash of ’87 in December 1987, and taking money off the table for the multi-year bull market that followed would have been a big miss. Boiler Room came out… Read More »
You want to be trading opportunity, not your mood of the moment. – Brett Steenbarger Many traders I have interacted during my training session, one of the basic reason for loss is trading on mood, Somehow trader gets a feel and he does some aggressive trade which ultimately lead to “BIG LOSSES”. So lets discuss… Read More »
Larry Hite While the speculator doesn’t have the product knowledge or speed, he does have the advantage of not having to play. The speculator can choose to only bet when the odds are in his favor. That is an important positional advantage. In the above quote, Larry is referring to the fact that smaller retail… Read More »
How do you know if your trading psychology problem is really just about trading or is a sign of larger problems? Here is a quick checklist: A) Does your problem occur outside of trading? For instance, do you have temper and self-control problems at home or in other areas of life, such as gambling or excessive… Read More »
Using Your Intuition Skilful traders know how to use their intuition to make quick, conclusive decisions. There are times when going with your “gut” instinct can be shrewdly accurate. There are also times, though, where your intuition can be dead wrong, and nothing more than wishful thinking. A seasoned, profitable trader knows the difference, and… Read More »
A great excerpt from “Trading Rules: Strategies for Success” by William Eng. It’s a great reminder that market prediction is a fool’s errand: When you buy something, you want it to go up. When you sell something, you want it to go down. The chance of entering the trade correctly is small, but the chance… Read More »
Have you ever lost yourself in a trade? You focus intensely on your screen and wait for the ideal time to enter. You’re fully attentive as you continue to watch your screen as the price creeps up to your profit objective. All your attention is channeled on your ongoing experience. Without even thinking, you exit… Read More »
Winning traders are courageous. They show courage when they risk their money, and face the possibility of losing it. They show courage when they follow their convictions, and possibly let their pride and ego get hurt. But courageous trading is a little more complicated than it appears at first glance. Courageous trading is not merely… Read More »