“If you diversify, control your risk, and go with the trend, it just has to work.” -Larry Hite We often hear of trading with an edge, but how do we know for sure we have an edge in our trading? How do we know that the odds are in our favor, and […]
7 Ways to Trade With an Edge Read More »
They trade too much. The edge that small traders have over institutions, is that they can pick trades carefully and only trade the best trends and entries. The less they trade, the more money they make, because being picky gives traders an edge. Unprofitable traders tend to be trend fighters, always wanting to try to
10 Bad Habits of Unprofitable Traders Read More »
40 steps in the trader’s journey from new trader to rich trader. They are as follows: We accumulate information, we learn- buying books, asking questions, maybe going to seminars and researching what really works in trading. We begin to trade with our ‘new’ found knowledge. We make profits only to give it back very
40 Steps In The Trader’s Journey Read More »
Most traders are not undone by their method or system, but rather they are undermined by an internal struggle. Problems arise when the adrenaline starts pumping and emotions come into play; this is the time when bad decisions are made. Pride, Fear, Greed, and Hope are the most dangerous internal indicators to overcome. Pride
4 Dangerous Emotional Indicators Read More »
“Where you want to be is always in control, never wishing, always trading, and always, first and foremost protecting your butt.” -Paul Tudor Jones This week was a lesson in how well traders managed risk, and how fast they could cut losses when they were wrong. If you made money this week, BRAVO! However, the
The 7 Psychological Mistakes That Blow-up Trading Accounts Read More »
Trading stress is primarily caused by two things: either not knowing what to do, or knowing what to do and not doing it. Many times, a new trader will discover that there is a big difference between reading about trading or simulated trading, and trading with real money on the line. Stress can knock
15 Ways to Manage Trader Stress Read More »
There are seven things that I believe are pretty common in the successful traders I have known, read about, and seen in action. Whether it is stock trader Nicolas Darvas in the sixties, commodity trader Ed Seykota in the twentieth century, or Jesse Livermore at the turn of the last century, many of
7 Habits of Highly Successful Traders Read More »
The market is too high, so I am going to go short. It has to go back down. I don’t need a stop loss because I know I am right. Hmmm…it went higher? That is just crazy! Now it is wayyyy too expensive. I will short more, because it has
A Bad Short Trade (with emoticons) Read More »
I firmly believe that what truly separates the 10% of winning traders from the 90% that lose is the trader’s mindset. The vast majority of traders think they want to trade until the losses hit them over and over and they just can’t mentally and emotionally handle it and end up quitting entirely. I believe
How Traders Rebound From Losses Read More »
Two of the biggest obstacles in trading are managing risk and developing a winning method. However, even if you control your risk on every trade and have a methodology that is a winner, you can still be tripped up by your own mind. Even when effectively managing risk, you will probably lose 10%
The 10 Keys to Winning Mentally Read More »