Archives of “February 2019” month

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Trading Lessons & Secret Knowledge

  
  Education
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Know specifically what you want in great detail. Not just how much money you want to make but how much time you want to spend trading, the amount of draw downs you are willing to experience and the amount of risk you are willing to put up with, and be realistic. For example if you say I want to make 100% on my account per year, I want no draw downs, I want to look at my positions once a week and not take on any risk. That’s like saying I want to make a million dollars a year as a pro basketball player, and all I’m willing to do to is buy some courses on how to play basketball and practice a few times a week. It’s not going to happen that way and you’ll need to change your expectations or you are wasting your time. It’s the same way with trading.

Take action with intention. Make lots of trades, not just one per month, try 30 per month or more. Find someone who is getting the results you want in the fashion you’d like to get them and model them. Decide on a system or set of systems that have the potential to get the results you want and then work with that system until it works for you. This is key, you are not going to find some set of rules that are instantly going to get you the results you want. You are going to have to pick a system and work with it for extended periods of time and experience many failures before it works for you, and even then, you will still experience losing periods. That’s just part of trading and if you cannot deal with it save yourself a lot of time and money and find a new profession. (more…)

10 Points for Traders

  
  Education
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  1. Understand the psychology of the trade: never believe you are smarter than the markets as the markets will always win.10 Lessons
  2. Acquire the knowledge on how the markets truly work then test and retest your ideas and concepts until you feel confident.
  3. Develop a working knowledge of what types of entry and exit orders work best.
  4. Understand how to manage risk by employing the use of options strategies.
  5. Pick a strategy that matches the market conditions.
  6. Manage the strategy. You should always know what your next reaction point will be and what prompts you to take it.
  7. Watch what moves. To be successful, you have to become a media hound.
  8. Integrate fundamental, technical, and sentiment analysis into a real world trading approach that enables you to best understand market performance.
  9. Specialize in one sector and one strategy at a time.
  10. Give yourself the winner’s edge by always continuing to actively pursue the learning process.

Be patient

  
  Education
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Be patient. If a trade is missed, wait for a correction to occur before putting the trade on.

Be patient. Once a trade is put on, allow it time to develop and give it time to create the profits you expected.

Be patient. The old adage that “you never go broke taking a profit” is maybe the most worthless piece of advice ever given. Taking small profits is the surest way to ultimate loss I can think of, for small profits are never allowed to develop into enormous profits. The real money in trading is made from the one, two or three large trades that develop each year. You must develop the ability to patiently stay with winning trades to allow them to develop into that sort of trade.

Be patient. Once a trade is put on, give it time to work; give it time to insulate itself from random noise; give it time for others to see the merit of what you saw earlier than they.

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