Hope is a dirty word for a trader ,not only in regards to procrastinating in a losing position ,hoping the market will come back ,but also in terms of hoping for a reaction that will allow for a better entry in a missed trade.If such trades are good ,the hoped for reaction will not materialize until it is too late.Often the only way to enter such trades is to do so as soon as reasonable stop loss loss point can be identified.
Archives of “January 8, 2019” day
rssIf the markets aren't right for your #trading strategy, then don't trade. Much easier said than done for most though
Habits :Read them daily
1) The market will instruct us what to do. Can we learn?
2) Participants’ humanity will cause typical price structures to arise.
3) Our primary job is risk manager…that’s why I believe in managing my resources. Most managers have too much career risk on the line. That is, they can lose more by being ‘out’ when it is perceived as a time to be ‘in’, than by losing money. The old saying “I’d rather lose half my clients than half my clients’ money” isn’t in their lexicon.
4) CASH IS A POSITION
5) The markets spend most of their time not trending
6) Multiple time frames allow more precise determination of decision-making
7) More ‘precise’ decisions may allow for smaller losses
8) The slope and direction of the 50 period moving average are telling
9) Our job is simple: make money.
10) Having a regular routine (preparation routine) is vital
What do we mean by "capital" ?
We Don't Need More Cameras Aimed at Citizens.We need More Cameras Aimed at Politicians
Born loser … (Must Read )
15 Common Sense Rules For Traders
1. No matter what you read about trading, until you use an approach and test it with your money on the line you will never learn how to trade. Paper Trading is NOT Trading!
2. If it were really possible to “Buy Low Sell High” or “Cut your Losses and Let your Winners Run”, then almost everyone would be making money rather than losing it.
3. Remember that there is ALWAYS someone on the other side of your trade who is using a trading technique exactly the opposite of yours who hopes to make money with his system.
4. If 90% of all traders lose money, they must be following generally accepted trading rules. The 10% who win do not!
5. You trade your beliefs and your beliefs about your system. If you have a problem with yourself, fix yourself first.
6. Impatience, Fear and Greed will make you poor. Any need to trade is rooted in greed and impatience.
7. If you really understand the markets then YOU KNOW that there is the same opportunity on every time frame, in every market, every single day.
8. Waiting for the perfect trade is “chickening out”, and caused by your lack of faith in yourself or your system.
9. Any hardwired, automated trading system sold that truly works 70 or 80 or 90 percent of the time in every market would be worth hundreds of millions of dollars and would not be for sale at any price.
10. Asking “How small an account do I need to begin trading” is asking to be wiped out.
11. Having a series of winning trades early can be more hazardous to your account than a series of small losses.
12. Learn to trade before you trade. If you win or lose without understanding why, you will never develop a winning strategy.
13. Ninety five percent of everything you hear from everyone about the markets and the markets “reasons” for doing what it did or will do are lies. Neither you nor anyone can predict the future. You can only make educated guesses about potentialities.
14. Asking someone (such as using a service) for advice on where the market is going is a sign you should be on the sidelines until you understand the market better. If the upcoming market direction is not obvious to you, you should not be risking your money. You will lose often enough even when you are right.
15. There is NO GUARANTEED way of making money in the Markets or anywhere else. NONE, NADA, ZIP, ZERO! All you can do is increase your knowledge about yourself and how to estimate the probability of placing a winning trade. Then trade by taking controlled and measured risks.
Is Your Trading Camera in Focus?
Great photographers never take a picture until everything is set up correctly and the subject is in focus.
If they have not analyzed the situation before taking the picture, their results will not be successful.
Traders need to follow the same steps. Your mind must be in focus and we must have a solid foundation in place before we execute a trade or else we will not have a high chance for success.
The magic is when art challenges technology and technology inspires art. —Collective Genius, by Dr. Linda Hill
Day Trading Terms
Advisor – the one who charges money for a piece of stock advice to cover his/her losses on the market.
Advisory Service – an advisor who lost a considerable amount of money and started new business.
Afternoon – a daily chance to give back the money you made that morning (see Friday).
Apprentice – anyone who peers at your screen shortly after you closed a profitable deal.
Average Down – what you have to do if you opened a long position and had to go to the bathroom.
Average Up – what you have to do if you opened a short position and had to go to the bathroom.
Bad Trade/Stupid Trade – an unprofitable deal that someone else carries out which does not fit your trading strategy.
Bottom – (when you have an open long position) the spot where you give up averaging down and sell; (when you have an open short position) the spot where the book recommends you to open a short position.
Break – a pause you take when you have either 2 profitable or 5 unprofitable deals in a row. (more…)