Oct 12, 2016

Don`t Become Obsessed With A Particular Market

It is easy for a discretionary trader to become obsessed with a particular market that has delivered a few straight losing trades, thinking that the market owes him something. This is a bad mental state to enter.

This happens to most traders once in a while. Traders that trade only one market are particularly prone to suffer from this malaise. After three, four or five losing trades in a row, a trader will feel that he has been fooled by the market. Do not try to recoup losses from a market after such a situation. You are probably just out of synch with that particular market. Look for a fresh trading setup in a different market, stock.

Oct 11, 2016

The Best Way To Start Evaluating A Technical Trading Pattern

The best way to start evaluating a technical trading pattern is by testing the entry signal. Is the signal associated with a higher than normal probability of a market move in the desired direction?

Oct 10, 2016

Trading Thought Of The Day

I have never met a successful trader who traded someone else's style. You must have a trading signature.

The Ability To Take Small losses Without Discomfort

The ability to take small losses is a skill shared by all successful traders. And this is where most novice traders really struggle. The inability to pull the trigger and close out a trade that is not working and taking a small loss is a thing that looks so obvious in print but it is a habit that comes with discomfort for many traders.

The Dangers Of Overtrading.

There are two big dangers related to over-trading. First, you pay lots of trading commissions which directly affects your year end P&L. Second, you commit capital to sub-optimal trades, and that means you may have less available capital for your best trading setups, your best trading ideas.