Archives of “January 2019” month

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20 Reasons :Why 95% Traders Not Making Money

  
  Education
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  1. They risk too much to try to make so little.
  2. They trade with the probabilities against them.
  3. They think trading is easy money.
  4. Instead of focusing on learning how to trade they focus on getting rich.
  5. They blow up due to improper position sizing.
  6. With no understanding of the mathematical risk of ruin they are doomed after the first long string of losing trades.
  7. Blindly following a guru that leads them down the road of destruction.
  8. They don’t do their homework.
  9. They trade opinions not robust systems. (more…)

Bound to Lead

  
  Education
  Tags

“There are men whose gait is far quicker than the mob’s. They are bound to lead — no matter how much the mob changes.”

– Reminiscences of a Stock Operator

What does it mean for a trader to lead — to have a gait far quicker than the mob’s?

In a short-term time frame, it means faster reaction time. Having the ability to see the meaning of an inflection point, and act on it in size, before the mob catches up.

In medium or longer-term time frames, it means the ability to see “general conditions” crystallize around probabilistic outcomes well before the mob does. Market analysis will vary widely in quality. Not only that, but some market participants will be slow to pay attention — or get bound up in emotional bias, or otherwise get their variable weightings wrong.

These factors then combine to create windows of opportunity, on a consistent basis, for those whose observations are accurate and timely.

Are you “bound to lead” in your trading? What aspects of your methodology reflect this?

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