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5 Obstacles For Traders ,Just Cross Them & See Great Results

  
  Education
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  1. YOUR EGO: It wants you to PROVE you are right, it wants you to trade big, the ego wants you to be confident in your ability to trade before you are competent in your trading through the right education and experience.
  2. YOUR FEARS: Fear makes you afraid to take your entry when it is triggered and afraid to let a winner run thinking it will turn into a loser. Fear comes from a lack of faith and lack of faith arises from lack of the proper study before you start trading.
  3. YOUR GREED: It makes you trade too big and too much. Greed makes you want to risk too it all to get rich quick. Greed usually leads to get broke quick trades. Greed wants to take a short cut to success and you have to travel the full road to get to where you really want to go. You have to go through the work and experiences to get to success.
  4. NO TRADING PLAN: If you do not have a map it does not matter where you want to go you will end up somewhere else. Every trade should be planned when the market is closed and then executed reacting to prices when the market is open. With no plan long term results are virtually impossible.
  5. YOU: The weakest part of any trading system is the trader that is suppose to follow it. If you do not put in the work to develop a trading plan that fits you, develop and keep discipline, manage your risk, and stick to the plan regardless of how you feel then no trading system will work for you.

Trader's mindset

  
  Education
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How does someone know that they reached the trader’s mindset? Here are a few characteristics:

1. No anger whatsoever.
2. Confidence and being in control of the self
3. A sense of not forcing the markets
4. An absence of feeling victimized by the markets
5. Trading with money you can afford to risk
6. Trading using a chosen approach or system
7. Not influenced by others
8. Trading is enjoyable
9. Accepting both winning and losing trades equally
10. An open mind approach at all times
11. Equity curve grows as skills improve
12. Constantly learning on a daily basis
13. Consistently aligning trades with the market’s direction
14. Ability to focus on the present reality
15. Taking full responsibility for your actions

Optimal Thinking

  
  Education
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Rosalene Glickman, Ph.D. offers views on “Optimal Thinking”:

“The quality of the questions you ask determines the quality of your life. When you ask the best questions of yourself and others, you invite the best answers. You can discover what “the best” means in whichever context you choose. You simply create the best path to your most desired outcomes.”

Most Profitable Questions:

* What’s my most profitable activity?
* How can I maximize the profitability of this activity?
* What’s the most profitable use of my time right now? (more…)

Rules By Jesse Livermore

  
  Education
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“In cotton I was very successful in my trading for a long time. I had my theory about it and I absolutely lived up to it. Suppose I had decided that my line would be forty to fifty thousand bales. Well I would study the tape as I told you, watching for an opportunity either to buy or to sell. Suppose the line of least resistance indicated a bull movement. Well I would buy ten thousand bales. After I got through buying that, if the market went up ten points over my initial purchase price, I would take on another ten thousand bales. Same thing. Then if I could get twenty points’ profit, or one dollar bale, I would buy twenty thousand more. That would give me my line–my basis for my trading. But if after buying the first ten or twenty thousand bales, it showed me a loss, out I’d go. I was wrong. It might be I was temporarily wrong. But as I have said before it doesn’t pay to start wrong in anything.As I think I also said before, this decribes what I may call my system for placing my bets. It is simple arithmetic to prove that it is a wise thing to have the big bet down only when you win, and when you lose to lose only a small exploratory bet, as it were. If a man trades in the way I have described, he will always be in the profitable position of being able to cash in on the big bet.I recollect Pat Hearne. Ever hear of him? Well, he was a very well-known sporting man and he had an account with us. Clever chap and nervy. He made money in stocks, and that made people as him for advice. He would never give any. If they asked him point-blank for his opinion about the wisdom of their commitments he used a favourite race-track maxim of his: “You can’t tell till you bet.” He traded in our office. He would buy one hundred shares of some active stock and when, or if, it went up 1 per cent he would buy another hundred. On another point’s advance, another hundred shares; and so on. He used to say he wasn’t playing the game to make money for others and therefore he would put in a stop loss order one point below the price of his last purchase. When the price kept going up he simply moved up his stop with it. On a 1 per cent reaction he was stopped out. He declared he did not see any sense in losing more than one point, whether it came out of his original margin or out of his paper profits. (more…)
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