“A trader who didn’t make mistakes would own the whole world in a month.” – Jesse Livermore If you see a trader on social media who never loses on a trade, then run from them. They are not being honest. Even the best traders generally have 60% – 70% win rates. Some of the best day traders […]
Losing Trades Suck Read More »
At times, markets have nice price trends where being long or short for days or weeks will lead to profitability. These are the markets that most new traders make money in by having a bias and holding onto that belief. This usually doesn’t end well because they are unable to understand when the trend is changing. Other markets
Playing Defense in a Tough Market Read More »
I have been active in the stock market in some form for over 20 years. I have made money in several different ways, looking for a good fit for my personality that allowed me to accomplish my life goals. I started as a mutual fund investor and evolved into a trader of stocks and options. My trading
Investing Habits 101 Read More »
I base my position sizing in my trades on the fact that I never want to lose more than 1% on any one trade. If I am trading with a $100,000 account, I don’t want to lose more than $1,000 in a losing trade. A stop loss level has to start at the price level
A Traders Quick Guide to Position Sizing Read More »
“The key to long-term survival and prosperity has a lot to do with the money management techniques incorporated into the technical system.” -Ed Seykota The above image shows the destruction of capital, not only for a losing streak, but also for a string of 10 trades with a 50% win rate; alternating between wins and
Why You Lose So Much Money Trading Read More »
When your specific trading methodology quits working due to a change in the market environment, you are in a losing streak, or a drawdown in trading capital. There are things you can do to lessen the emotional and financial pain. In losing streaks, trade smaller and smaller until you start winning again. Trade less; only
10 Ways to Stay Safe in Dangerous Markets Read More »
New traders come to trading excited about learning, and looking for a fast path to riches. The majority of new traders can make big mistakes that take their accounts to zero during their learning curve. Traders can grow their capital if they do it correctly, but there are dangers that new traders should be
7 Things That Lure Traders to Their Doom Read More »
“You adapt, evolve, compete or die.” – Paul Tudor Jones Learning to trade is an evolution of trader and system. You have to continually learn and grow as a trader. The markets are dynamic and we must continual learn to refine our system. Our losses must be our lessons, our wins must be our
Trading Lessons I Learned the Hard Way Read More »
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 downs
35 Top Destroyers of Trading Capital Read More »
