rss

Top 10 Trading Influences

If New Trader University had a campus this would be the professors:

Dan Zanger is a world record holding trader that taught me to use in the money stock options on the biggest monster stocks to amplify my returns with no added risk at key points. He is the king of chart patterns.

Alexander Elder taught me how the trader’s Mind, Method, and Money Management have to all work together for a trader to be successful.

Michael Covel showed me how the best trend following traders in the world win over the long term by simply following the trend. Finding the big trends is now my focus above all else.

Jesse Livermore knew how to make a fortune in bull and bear markets, in commodities or stocks. His only weakness was the management of the risk of ruin. He made some of the biggest fortunes in the history of trading and also blew up his account more times than other legends.

Nicolas Darvas showed me how to ride monster stocks 100 points farther than anyone else seemed to believe they could go. His lessons also showed me how to miss bear market draw downs.

Van Tharp‘s marble game on how to manage the risk of ruin was a game changer for me. Managing risk is really what determines a trader’s long term survival not stock picking.

William O’Neil showed me how to pick the real winning stocks based on historical models not opinions. He has studied what has really made money in the stock market historically better than anyone else I know. I get my stock watch list from his publication Investor’s Business Daily’s IBD 50.

Ed Seykota is truly a master trader and he has the returns to prove it. Mr. Seykota believes that a trader’s psychology determines a trader’s success more than any other factor.  I believe him.

Jack Schwager wrote “Market Wizards” and really got into the specific nuts and bolts of what makes them win.

Paul Tudor Jones I have picked up a lot of trading wisdom form his documentary, quotes, and interview. He is truly one of the greatest  traders of our time.

If you decide to study these great traders keep what actually makes you money in the long term and discard what does not.

You Are A Bad Trader ….If

…You are 100% sure about a trade being a winner so you have no need to manage risk.

…You go all in on one trade and  it will make you are break you.

…You like to buy deep out of the money stock options not understanding how bad the odds are on them.

…You love directly giving unsolicited advice to other traders due to not understanding they have different trading plans and time frames.

…You are so new to trading you think it is a place of easy money.

…You think traders that talk about risk management and trader psychology are silly and that you are above that.

…You brag to much about your account size and last trade, it indicates to me you do not understand the long term in the markets.

…You are very loud about your winners but never discuss your losing trades.

…You brag to much.

And You Might really be a bad trader if: If you attack trading principles that you do not even fully understand due to lack of real trading.