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 […]
7 Good Ways To Exit a Trade Read More »
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
The 10 Mental Errors That New Traders Make Read More »
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
Powerful Emotions of a Winning Trader Read More »
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
A Trader’s Downward Spiral Read More »
“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 that the more
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 screams,
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 »
The very first rule we live by is: Never risk more than 1% of total equity on any trade. -Larry Hite I try very hard not to risk more than 1% of my portfolio on a single trade. –Bruce Kovnar One of the most important lessons that a trader must follow to ensure his long term
Risk Management for the Trader in 1 Lesson Read More »
Most traders have been in that one monster, parabolic trade where they made a killing. The problem is the exit. It is important to always be wary and plan a trailing stop to get out of your huge winners. So many investors and traders just get lucky, get in the right trade at the right
10 Signs a Trade is About to Go Bad Read More »
Trading is more about the trader than the markets. The markets are neutral; they have no agenda and no evil plots to take your money. Each random entry has a 50% chance to win or lose, even with no method attached. The key is getting an edge in your trading. Knowing who you are
New Trader, Know Thyself Read More »
Reading Nicholas Taleb’s newest book Anti-Fragile really got me thinking about how traders are broken. Traders can become fragile and be broken in several ways: They can quit because they believe that trading successfully is impossible. They can lose half their account or all of their account and just give up. They can become emotionally
Fragile Traders vs. Anti-Fragile Traders. Who breaks First? Read More »
“Plans are plans until they aren’t. Don’t confuse trading ideas with prophecy. You don’t know the future. Unless you cause it.” -Curtis Faith This morning I went in very biased about buying Apple long, my mind was clouded with the support level of the 50 week moving average holding up
How I was Wrong but Still Made Money Today Read More »
Do you really, really, want to be a trader? There is no secret system, method, or guru that will make you a successful trader. Trading is work, trading is taking the hits, managing risk, and learning how to navigate the markets you trade. It is no different than any
Caffeine For the Trader’s Soul Read More »