This is a Guest Post by Alex @MacroOps which was originally posted at The Philosopher on Playing the Player Market sentiment is a fuzzy concept. In its most basic sense, it’s the aggregate beliefs and moods of actors that comprise the total market. It’s tough to measure, gauge and test. And so, it’s often discarded completely […]
The Philosopher on Playing the Player Read More »
1. Decisions – You must decide what markets you will trade and on what time frame. 2. Homework – Learn what actually works in the market to create profitability. 3. Adjustments – Discover what makes you money and what causes losses. Make adjustment to do more of what works and stop doing what costs you money.
The 5 Steps to Profitable Trading Read More »
This is a great point and article shared in my Facebook trading group: From Simon Vuko: The below principles have massive trading implications for newbies: ‘The Dunning-Kruger effect explains that the problem isn’t just that they are misinformed; it’s that they are completely unaware that they are misinformed. This creates a double burden.” “Studies have
Trading in the Dark Read More »
There are some common things that happen to most participants in the financial markets on their path to success or during their failures. Some start out with beginners luck only to see it run out and realize they have to build skills. Others have to go through failures for a long period of time before they
Inevitable Events on Your Trading Journey Read More »
Trading Bias Definition: A trading bias is the tendency that leads traders and investors to follow a predetermined path in a trade or investment even when it appears they are wrong from a fundamental or technical perspective or both. A bias about a trade occurs when there is a loss of perspective because their opinions or predictions are held even
Breaking Your Trading Bias Read More »
Trading with no stop losses. You can’t control how big your profits are, the market will trend as far as it does. However, you can control and limit the size of your losses with a stop loss and a carefully managed positions size. Not having an exit plan if you are wrong can be very expensive when
7 Expensive Things for Traders Read More »
This is a Guest Post by Alex @MacroOps which was originally posted at Lessons from a Trading Great: Bruce Kovner. Bruce Kovner retired in 2011 from Caxton Associates, the hedge fund he founded and ran for 28 years. Over that time the fund returned an average of 21 percent a year since its inception. In comparison,
Lessons from Market Wizard: Bruce Kovner Read More »
Regardless of whether you are a trend follower, day trader, swing trader, value investor, or growth investor, profitable trading requires one thing to make any trading process work long term. Successful stock market operations require studying the principles that lead to making money, you have to do the work. When you understand the principles of
Profitable Trading Starts With One Thing Read More »
In Star Trek, Captain Kirk believed that his leadership abilities helped him make good decisions in difficult situations. In contrast, Mr. Spock applied logic and reason, along with his perceived probabilities of success, to make his decisions. These contrasting styles are similar to two opposing trading strategies; discretionary traders and systematic traders. Discretionary traders try to get by on their past experience and
Do You Trade Like Captain Kirk or Mr. Spock? Read More »
In trading most new traders allow hope and fear to dictate their trading. They have a losing trade and instead of selling it and getting out they instead hope it will come back to even and fight a trend allowing their loss to grow bigger. Another error for new traders is that when they
Trading Fear and Hope Correctly Read More »