The only one capable of answering which trading strategy is “right” or “wrong” is the trader. The answer depends largely on psychology. — Michael Lamothe (@MichaelGLamothe) July 2, 2014 There’s no single “right” or “wrong” trading strategy but there are “right” and “wrong” trading strategies for each trader. — Michael Lamothe (@MichaelGLamothe) July 2, […]
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In my Facebook trading group, I asked the question: “What is your most important trading rule?” As usual, I got a ton of great answers. The most common response was: “Always follow your trading plan.” followed by “cutting losses”, and “keeping losses small.” This should hit home for new traders. If you do not have a
16 Important Trading Rules Read More »
For a trader to be successful their intellect must defeat their ego. A trader must use probabilities to overcome their own personal opinions. A trader has to use risk management to overcome the hope that a losing trade will turn around and just take the original stop loss plan. A trader must allow the actual
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There are two different issues that I have seen traders face: #1 Not knowing how to turn off their trading. Obsessing about every trade and watching every tick even when no value is added. Tying their self worth to their trading results. A trader has to have an ‘off’ switch along with their “on”
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You can control when you enter and what will cause you to exit but where price goes in the mean time is up to the market itself. You can decide how big of a position you want to trade but you can’t choose your profit amount that is up to the market. You can’t decide
What Traders Can Control And What They Can’t –> Read More »
So far the stock market in 2014 does not care about anything but the central bank IV drip. The bulls continue to run wild in the energy sector $XLE as they wait for some clarity in Iraq. $XLE did finally fall back to reality under the 70 RSI. 2104 has been the year
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In order for my option book “Show Me Your Options” to become an official “Bestseller” on the Amazon Kindle platform… I need to have real customers with real sales and real testimonials posted on the Amazon website. What’s surprising is that it doesn’t take a million orders to become a best seller. By my estimations,
The Five-Step Process of System Development by Richard Weissman: pages 11-13 When to not play: a poker lesson for traders by Brett Steenbarger CNBC Viewership Drops To Lowest Since 1997, Cramer Has Worst Month Ever The Dunning-Kruger Effect: Why Every Novice Thinks They Can Trade The Psychology of Getting More Done (In Less
Weekend Reading – 6/28/14 Read More »
Don’t worry, America. If the game is going the wrong way, the Fed is prepared to intervene in the 2nd half. #USAvsPOR — Rudolf E. Havenstein (@RudyHavenstein) June 22, 2014 “@drunkNnaughty: I have CDO. It’s like OCD, but the letters are in alphabetical order. Like they should be.” — Joseph Fahmy (@jfahmy) June 21, 2014
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While all of these may not fit into your own trading plan, some of these rules could help individuals decrease drawdowns. Make limiting your drawdown in capital your number one priority, not your profits. It is much easier to be profitable when you don’t lose a lot of money. Never lose more than 1% of
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