10 Different Types Of Traders. Which One Are You?

Here are a list of ten types of traders I have observed on social media. We have all likely been more than one of these types at some time or another while trading. But we need to focus like a laser on the only real reason we should be trading: to make money and once we have made it, to keep it.

  1. Greedy Traders: They trade too big and risk too much because their only goal is the easy money. They usually end up blowing up their account.
  2. New Traders: They have no idea how the markets work so their only goal should be knowledge. New Traders do well to stay students until they have done their homework. Rushing in to make money without risk management, a winning method, the right mind set, and a trading plan will result eventually in failure 100% of the time.
  3. Arrogant Traders: Their only goal is to prove they are right and satisfy their fragile egos. Arrogant traders will lie, delete tweets and posts, never admit when they are wrong. When they are wrong they will hide it under a cloak, when they are right they will scream it from the roof tops.
  4. Trend Traders: Their only goal is to ride a trend and make money. Trend traders will buy high and sell much higher, they will short and cover much lower. They look like genius’ and prophets in a trending market either way it trends but they look like they can’t even trade in choppy or whipsawing markets. In the long term they do very well.
  5. Scared Traders: Their only goal is to not lose their capital. Scared traders will immediately close losing trades and also immediately take profits. They are very stressed out in trading due to not understanding the nature of trading itself or just can not handle the uncertainty or risk. They either need to do their homework to develop their faith in or if they have done the homework trading may just no be for them. (more…)

Trading Lessons

The market is a tough battle.  Each day there are chances and opportunities to make money though, it is the greatest form of free market capitalism known to man.  It’s a vast ocean with treasures; we just have to be able to unearth them at the right moment.  We have the ability to navigate carefully through markets, put our bets out there and see where the chips fall.

But if we are too loose with our capital then we are headed for a bad ending.  Discipline is one of the keys to success:  learn your craft and practice.  Each day that passes is one more great learning experience – capture it, analyze it and grow from it.  Use a trading system, pay attention to the timeless patterns of price/volume and believe in what you see and not what you hear. (more…)

9 Trading Lessons for Traders

  1. You have to be able to lose in order to win.
  2. Always be realistic with your monthly target.
  3. It is absolutely OK, and most of time, helpful to shutdown all social networking such as twitter, stocktwits, facebook. Think about it, if your friend is affecting your work, tell him to come back later. Trading is about concentration, and definitely a personal and lonely business. To be a successful trader, we must walk alone in our days and do it alone.
  4. If you are really seriously addicted to twitter, try to challenge tweets who call trade, instead of following them.
  5. When your position is right, you have to do nothing instead of doing nothing when you are wrong! [constantly taking early profit will do you more harm than good]
  6. You must keep your losses small and take more small losses than small winners to come out ahead. You will become the best trader you can be by being wrong small, not right small.
  7. It is your job to know your are wrong and not the market’s job.
  8. You have to press your winners if you really consider yourself to have the ability to make a living or extra income from trading.
  9. When you place a trade, don’t ever think this is the only trade to make. There are thousands of trades you can make. You aren’t going to miss a move for long if you trade correctly. You aren’t going to chase markets if you trade correctly. You must have a plan to enter positions based on each market’s criteria.

There is No Such Thing as Information Overload

The information dietJust as too much junk food can lead to obesity, too much information can lead to stupidity.

Clay Johnson’s book, The Information Diet, shows you how to thrive in this information glut, but you must accept that there is no such thing as information overload.

Once we begin to accept that information technology is neutral and cannot possibly rewire our brains without our consent or cooperation, something else becomes really clear: there’s no such thing as information overload.

It’s the best “first world problem” there is. “Oh, my inbox is so full,” or “I just can’t keep up with all the tweets and status updates and emails” are common utterances of the digital elite. Though we constantly complain of it—of all the news, and emails, and status updates, and tweets, and the television shows that we feel compelled to watch—the truth is that information is not requiring you to consume it. It can’t: information is no more autonomous than fried chicken, and it has no ability to force you to do anything as long as you are aware of how it affects you. There has always been more human knowledge and experience than any one human could absorb. It’s not the total amount of information, but your information habit that is pushing you to whatever extreme you find uncomfortable. (more…)

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