Emotions Are Not Trading Signals

Emotions are not trading signals

Traders hear the terms "buy fear and sell greed" over and over again. However, these sayings are meaningless outside the context of specific price action. Here is some context: Fear is not a buy signal. Fear can set up a dip buying signal with a good risk/reward ratio, or a short side trade out of an overbought area. Fear itself is meaningless outside of quantified … [Read more...]

Why Traders Do Dumb Things

Why Traders Do Dumb Things

  Why do smart traders do dumb things? It is usually an issue with overwhelming emotions, and not intellect, when bad trades happen. Here are a few of the primary reasons that traders struggle. ~The biggest cause of trading a position size that is too big? It's the greed of wanting the big win that makes you take on too much risk, rather than not having enough faith … [Read more...]

7 Reasons to Never Give Up Trading

Never Give Up

  Early on, new traders will want to give up. Particularly when they figure out that the first few years are more about studying and paying tuition in losses, than in making money. Trading is a two-sided competition, and you have to be on the right side of the trade to make profits. Not only does this not happen all the time, but many profitable traders only have … [Read more...]

What Rainbows Can Teach Us About Trading

Rainbow in the Markets

  Every Spring,  it rains in Nashville. A lot. This Spring is no different, with torrential rains flooding our neighborhood. It's annoying when it happens, and sometimes, even dangerous. But ultimately, it brings us necessary rain, and almost always gives us something very special: a rainbow. A rainbow is a sign of new beginnings, and of change. It got me thinking … [Read more...]

The Life Cycle of the Typical Trader

The Life Cycle of a Trader

This is a GUEST POST from Rolf @Tradeciety. The exciting start Do you remember how you got started in trading? Everything seemed possible, and you were ecstatic about the possibilities that trading offered, but what happened afterwards? This article will help you understand the different phases almost all traders will go through, why they are stuck in the same routine, and … [Read more...]