Archive for category: Trading Method

10 Keys to Being A Trader, Not A Gambler

29 Jan
January 29, 2015

  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 financial markets. The difference between a trader and a gambler is similar […]

What Is The Best Trading Method?

28 Jan
January 28, 2015

  “You don’t trade the markets; you only trade your beliefs about the markets.” – Van Tharp Just like there is no ‘Holy Grail’ trading system that never loses, there is also not one ‘best’ trading method. All trading methods have good points and bad points with advantages and disadvantages. Many traders make the mistake […]

Why Big Wins & Small Losses = Profitability

14 Jan
January 14, 2015

  “It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.” – George Soros Looking at the below chart you will see that the bigger your wins are versus your losses the lower your winning percentage can be and […]

35 Top Destroyers of Trading Capital

22 Dec
December 22, 2014

  When I asked my Facebook trading group what was the cause of their biggest trading losses, no one had any trouble remembering those painful and valuable lessons. These top 30 insightful answers will benefit new traders and provide a nice reminder for those with more experience. “What was the cause of the biggest draw […]

Trading: Predictions vs. Expectations

10 Dec
December 10, 2014

    This guest post is from: Christopher Ebert @OptionScientist There are two VERY DIFFERENT terms to consider when it comes to trading: 1) Prediction and 2) expectation (or confidence) surrounding the prediction. Placing a trade involves making a prediction. It is not possible to place a trade without making a prediction, and that is […]