Archives of “January 2019” month

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Three Things Will Destroy Your Trading

  
  Education
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Not having a plan. Get a plan, who cares if it is bad, start with something. You can build off of it and refine it. You have to be willing to spend the time to make the plan yours. You do not start anything without some level of planning. Trading is hard; your brain spends a lot of time in fast forward, affecting your memory. You can slow it down by having a plan and increase your brains ability to remember.

Thinking trading is easy. It is not, there are times when it can be slightly less difficult after a lot of time, patience, and hard work. When I think to myself “this is easy” I lose my sharpness. My focus is adverted from my goal. I will lose. It may not be on that trade but maybe the next.

Not being a beginner. There is only one thing that every trade is guaranteed to give me: a chance to learn about myself, the market, and the interaction between the two. You have to be willing to be relentless in your learning. It will enable you to learn the cheapest.

Four Basic Points on Technical Analysis

  
  Education
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The true trader, the consistent winner, is not concerned with any price or where prices started from.  He or she is concerned with what it takes for people to believe strong enough, and with enough commitment, that they will place their capital at risk.”  So, with that in mind, the four basics:

1.  A price chart is simply “a pictorial representation of the sum total of all the market’s belief structures.”  No matter what we believe the chart does not lie.

2.  “Because every potential trader in every market is seeing it differently, every printed price will mean something different to everyone.” Our entry may be someone else’s opportunity to exit and vice versa.  We should always remember this the next time we believe we have a sure thing.

3.  Prices eventually have to stop their forward progress, in either direction.  “When every potential trader has executed for an entry, in any time frame, the market is vulnerable. When no one is doing anything, and what’s been done is done, prices must stop.” 

4.  No matter what indicator we use “every technical indicator designed is based solely on combining or dividing prices in some way.”  Volume and open interest, however, “chronicles the true state of what is happening inside the minds of the market participants.” 

5 Signs You’ve Matured as a Trader

  
  Education
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1) Are Self Reliant: When you stop asking other people: “What do you think of the market?” While I respect the opinions of my colleagues, I DO NOT rely on them. I prefer to do my own homework, research and analysis. I LET THE MARKET tell me if I’m right or wrong.

The ultimate goal for traders is to make confident decisions on your own and trade with complete independence. You should not have to rely on the opinions of others because you should have conviction in your OWN ideas.

2) Stop Celebrating Winners: When you stop feeling the need to pound your chest every time you make 30 cents on a stock. (It is the flip side  of not getting depressed over every loss). Recognize what you did correctly and move on to the next trade.

Same thing goes for the stock market. Don’t act like you’ve never had success trading before.

3) Let the Trades Come to You:  When you stop feeling the need to trade every day and you get over the “fear of missing out.” This is the downfall of most traders.

It took me a while to shift my focus from worrying about “missing out” to playing great defense. Once I did this, I noticed an increase in my confidence level as a trader. Keep in mind, there will ALWAYS be opportunities and it’s okay if you miss a few. (more…)

Three Important Lessons For Traders

  
  Education
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1.No one Knows with 100% certainty whether the trade will be profitable or not 

2.No one knows how much money will be made or lost on a trade

3.If the Trader does not control the profit outcome and does not know with 100% which trades will work ,then a the trader should spend 100% percent of his time concentrating on the only element of the trade he can control-the  risk of the trade.

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