The primary thing that trips up the vast majority of traders and investors is not the math, the markets, or a trend. What causes the 90% to end up unprofitable in the long run is mental errors. Errors caused by fear, ego, greed, and a lack of discipline to create a plan or to follow […]
10 Mental Errors Traders Make Read More »
William O’Neil is likely one of the greatest stock traders of our time. O’Neil made a large amount of money while he was only in his twenties, enough to buy a seat on the New York Stock Exchange. Today, he runs a successful investment advisory company to big money firms, and is also the creator
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The Psychology of Trading: Tools and Techniques for Minding the Markets Author Brett Steenbarger has done a great job with this book. He covers what I personally believe is the most important element in trading: psychology. New traders will probably not last through their first year in the markets without blowing up their accounts by
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The difference between traders that rely on their instincts and chart reading abilities and those who are pure system traders. Discretionary Traders… …trade information flow. …are trying to anticipate what the market will do. …are subjective; they read their own opinions and past experiences into the current market action. …trade what they want and have
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The Three Skills of Top Trading: Behavioral Systems Building, Pattern Recognition, and Mental State Management by Hank Pruden shows how traders must learn to combine three crucial skills in the markets to become a top trader. Pattern Recognition and Discretionary Trading The author uses the Wyckoff method to show chart representations of how hot stocks are
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I never understood why traders held losing trades for too long. Our goal is to make money, isn’t it? And yet, we’ve all held onto something negative for too long; a losing trade for a few days, a bad marriage for a decade, smoking for a couple of decades, or any number of other things
Losers Don’t Belong in Your Life Read More »
“We learned just to go with the chart. Why work when Mr. Market can do it for you?” – Paul Tudor Jones Only price pays. In trading, emotions and egos are expensive collaborators. Our goal as traders is to capture price moves inside our time frame, while limiting our drawdowns in capital. The longer
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Over trading Most new traders think that they must always be long or short the market. They lose a lot of money during certain market stages like corrections, high volatility, or bear markets. Sometimes the best position is cash. Sometimes the best trade is no trade. Sometimes their is no signal just chaos. Profitable
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This is a Guest Post from Rolf @Tradeciety (He has some of the best content and trading graphics on twitter). “You only learn from your mistakes” is a very dangerous and misleading statement. And at the same time, it is totally wrong. In fact, there is so much you can only learn from your winning
What Your Trading Results Can Teach You. Read More »
You have power over your mind – not outside events. Realize this, and you will find strength.” – Marcus Aurelius The weakest part of any trading system is the trader themselves. To be a successful trader, you must manage yourself. The ability to manage your own physical, emotional, mental, and spiritual health will go
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