Dis·ci·pline : a way of behaving that shows a willingness to obey rules or orders. Discipline is a key element of successful trading, nothing works in trading without the ability to stay focused and take the right action at the right time. We must take our entries when we get the signal. We […]
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A trader’s best friends are risk management, trading method, perseverance, self control, and passion. Here are a trader’s worst enemies: Stubbornness: Not cutting losses and sticking with a trading method that doesn’t work. Arrogance: Believing that you are smarter than the majority of market participants before being proven. Opinion: Opinions about the future are
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Many new traders waste a lot of time going around in a circle of no progress. They go around and around, chasing the wrong things, lured into buying into the wrong principles of prediction that do not work. They look for the easy solution instead of just doing the work. There are great educational resources for
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Many new traders launch into trading with great excitement and with an urgency to start making money right away. To this I would like to say, whoa cowboy There are many things to consider. The markets are not an easy place to make money at will, in contract markets like futures and options it is
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As a new trader I did not understand a part of a trading book where Alexander Elder was talking about how bad traders can be like alcoholics and may even benefit from going to AA meetings. That truly baffled me. Surely trading is just math and numbers and learning what to do. What does addiction
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The Bear- This trading animal believes the market will be going down and plays the short side. Bears think that a market is going to be very red. The Bull- This trading animal is very optimistic that the market will be green. Bulls love to buy and believe their screen will be full of
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In trading, the money is not made in the entry, it is in the exit. The art of the exit is crucial to a trader’s success in the markets. Profits can disappear if you do not take them at the right time, and small losses can become huge losses if you do not cut them
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The weakest link to any trading strategy is the trader that is executing it. It is usually the mental and emotional errors of the trader that cause 90% of traders to lose money. Trading success is determined more by the mindset of the trader, than their skills with math, economics, or macro knowledge. The
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One thing that trips up new traders is that they are surprised by the emotions they experience when they start trading with real money. Their ego engages and they don’t want to be wrong, more than they want to win over time. In my opinion, trading is primarily won or lost in the mind. Mental
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We are like snowballs that roll along, building size and momentum as we go. Winning leads to more winning; money creates more money. Equally, a negative sequence of events can lead to a trader’s mental ruin, as their thoughts skew to the negative. Below is a list of mental behaviors that can take a new
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