Archives of “January 29, 2019” day

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10 Big Lies Traders always says…

  
  Education
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1. The losing position wasn’t my fault, the market
    moved against me.

2. The trade was right and the market wrong.

3. I just have bad luck.

4. Eventually the stock will go up (or down)… eventually.

5. Bigger size equals bigger profits.

6. No need to close the postion just yet.I can average down.

7. Because I made so much money on the last trade  I can take on more risk the next.

8. If the market is going down I can’t make  any money.

9. I need to trade a larger account in order to be a better trader.

10. I’ve had many winners in a row, so now I need  a big loser.

Think Less & Keep It Simple

  
  Education
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Every once in awhile I read something from another trader who I respect that I really wish I wrote myself. Here’s one such example:

 “One of the most difficult things to get investors and traders to understand is that no matter how much they investigate an investment, they will probably do better if they did less. This is certainly counter-intuitive, but the way that our brains function almost guarantees that this will happen. This kind of failure also happens to those investors frequently regarded as the smartest. In essence, the more information that investors have, the more opportunity that they have to choose the misinformation that suits their emotional purposes.

 

Speculation is observation, pure and experiential. Thinking isn’t necessary and often just gets in the way. Yet everywhere we turn, we read and hear opinion after opinion and explanation on top of explanation which claim to connect the dots between economic cause and market effect. Most of the marketplace is long on rationale and explanation and short on methods. (more…)

Trading Discipline

  
  Education
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Discipline-TradingYou need emotional discipline or your trading will become erratic. The worst thing that can happen to a trader is that they experience a dose of ‘beginner’s luck’. An enhanced sense of confidence as the result of a few good trades (probably flukes) is a huge threat to your working capital. If you make a good trade – don’t let the adrenaline rush send you headlong into another attempt. Instead, analyse your trade – do you really understand why is went well for you ? If you do – great ! Use this knowledge towards the development of a controlled trading method. If you don’t understand why this trade was a good trade -heave a sigh of relief at your good luck – and recognise it as such.

You need discipline to develope your trading method, to stick to your trading method, to follow the rules of that method and to close down your trading platform if you cannot see a trade.

It bears repeating – if you cannot see a trade close down the trading platform and don’t open it again until the next day’s session.

30 One Liner For Traders -Must Read

  
  Education
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1. Buying a weak stock is like betting on a slow horse. It is retarded.

2. Stocks are only cheap if they are going higher after you buy them

 3. Never trust a person more than the market. People lie, the market does not.

4. Controlling losers is a must; let your winners run out of control.

5. Simplicity in trading demonstrates wisdom. Complexity is the sign of inexperience.

6. Have loyalty to your family, your dog, your team. Have no loyalty to your stocks.

7. Emotional traders want to give the disciplined their money.

8. Trends have counter trends to shake the weak hands out of the market

. 9. The market is usually efficient and can not be beat. Exploit inefficiencies.

10. To beat the market, you must have an edge. (more…)

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