The wrong trading psychology is one of the biggest things that cause people to fail in trading the financial markets. No trading system will work, no matter how good, if a trader can’t follow it with discipline and focus over a long period of time. It is emotions and ego that usually cause a trader […]
Top 3 Trading Psychology Lessons I Leaned In 30 Years (Emotions = Mistakes) Read More »
A plan quantifies intentions or decisions about what you are going to do ahead of time. It is a map or decision tree that acts as a guide as things play out. A strategy is the science and art of employing plans or stratagems toward a goal. A strategy is an integrative set of choices
A Plan Is Not a Strategy Read More »
A trading plan is used to express the actions you will take to express your trading system in the market through entries, exits, and position sizing. A trading plan sets the parameters for executing your signals with real capital in the markets based on predetermined signals. A trading plan is created when the market is
The Ultimate Trading Plan Template Read More »
This is a guest post by Sami Abusaad of @T3Live When the market turns unstable, what do you do? Panic sell? Seize the moment and start gambling? If you want to wade through the treacherous waters of a volatile market and come out with your P&L — and your dignity — intact, you need
How to Write the Perfect Trading Plan Read More »
This is a Guest Post by Ivan @Retail_Trading Social media is a dangerous place for anyone new and in search of good trading mentors. I have seen this time and time again. People come in, join Facebook groups, follow people on Instagram and then those GURUS start posting charts with arrows and trend lines just
What Exactly is a Forex Trading Plan? Read More »
This is a guest post by George Boncoraglio shared as a post in my Facebook Trading Group. It is reposted here with permission. I have always told new traders that you should always keep your word. This is a lesson I leaned from the Baby Boomers and the Silent Generation. Most of those people kept their
Why A Trading Plan Is A Promise To Yourself Read More »
This is a Guest Post by AK of Fallible AK has been an analyst at long/short equity investment firms, global macro funds, and corporate economics departments. He co-founded Macro Ops and is the host of Fallible. In this video we talk about how you can improve your trading by being more like Dutch van der
Why You Need A Trading Plan Read More »
“I will be first to admit that charts do NOT forecast price – they show path of least resistance and provide an excellent risk management tool” – Peter L. Brandt Boolean logic reacts off how the pattern plays out. It is just probabilities not predictions. Boolean logic is named after a nineteenth-century mathematician, George Boole.
Trade Probabilities Not Predictions Read More »
This is a Guest Post by AK of Fallible AK has been an analyst at long/short equity investment firms, global macro funds, and corporate economics departments. He co-founded Macro Ops and is the host of Fallible. In this video my partner from Macro Ops, Tyler, will provide an example of one of his trades — shorting the
Trading Plan Example-Shorting The Euro Read More »
Before you can trade you must first have a trading plan. A trading plan is written while the market is closed to tell you what to do when the market is open. A trading plan tells you how to specifically execute your trading system in real time with real money. A trading plan forces discipline
21 Questions for a Trading Plan Read More »
In trading more action and time spent watching screens is not necessarily rewarded with more profits. The majority of the time trading every day and watching every tick in price is not rewarded by making more money. Ed Seykota had some of the best annual returns for decades and traded strictly with end of day data. Nicolas Darvas
Trading: When Less is More Read More »
It surprises people on twitter when they start a big passionate argument about why my trade is wrong and I just say, well if I am wrong I will stop out with a small loss. No big deal just one of my next 100 trades. Many have trouble even comprehending this concept. If you are managing
You are Not Nostradamus Read More »
This is a Guest Post by: Colibri Trader @priceinaction. This article is used here with permission and originally appeared here at Why Every Trade is Different or The Curse of the Cauliflower. Why Every Trade is Different or The Curse of the Cauliflower by: Colibri Trader Trading is a way of expression. Being free to chose the way
Why Every Trade is Different Read More »
This is a Guest Post by Alex @MacroOps which was originally posted here at Goals, Expectations, & Inner Alignment In Trading, Why Do You Trade? It’s important to understand the true drivers behind why you trade the markets. The answer is different for everyone. We all have different circumstances, wants, wishes, and desires. Find yours.
Examine Your Trading Expectations Read More »
Flexibility for the trader to move with price action is the key to successful trading. Stubbornness is very expensive in the markets when you are on the wrong side of a trend. You can be rigid with your rules and risk management but you must be flexible when it comes to how the future plays out
Good Traders are Flexible Traders Read More »
This is a Guest Post by Alex @MacroOps which was originally posted on his site at The Fallacy of Market Prediction and reposted here with permission. Spoon boy: Do not try and bend the spoon. That’s impossible. Instead… only try to realize the truth. Neo: What truth? Spoon boy: There is no spoon. Neo: There
How to Trade an Unknown Future Read More »
To be a profitable trader you must overcome these ten things: You must beat the market benchmark you are competing against or you might was well just buy and hold that index. You must beat your emotions by following a trading plan. You must beat your ego by taking losses early when you are proven
10 Things a Trader has to Beat Read More »
A trading plan expresses specifically how you will execute your trading system in real time with real money. Here are the 10 dynamics that go into creating a trading plan. Entry signal: What price action parameters or technical signals will cause you to enter a trade? How will exit your trade if it is a
10 Dynamics of a Trading Plan Read More »
How you manage your trade will significantly impact your success as a trader and your profitability. Trades are not as simple as getting a hot tip and then buying. The entry, the exit, the discipline, and the risk management have to all converge for success in trading. Mismanaging a step in your trading process will
Trade Management 101 Read More »
The $UVXY ETF started trading in October of 2011 and it seeks a return that is 2 times the return of the VIX on a daily basis. Due to the compounding of daily returns, the $UVXY’s returns over periods other than one day will be very different than just holding double the $VIX due to
The Real Big Short Read More »