Trading Rules to Follow Everyday

1. Never Average a Losing Position — Under any circumstance add to a losing position ever! Always Remember Averaging Bring the cost down but it increases trade size which can lead to Ruin of trading account.Holding to losing positions costs measurable sums of actual capital, but it costs immeasurable sums of mental capital. 2. Trade … Read more Trading Rules to Follow Everyday

The Importance of Trading Psychology and Discipline

The winning trader is cold, calculating, and unemotional. Fear and greed control the masses, but if they are allowed to control you, you become one of the millions who can’t understand why they cannot make a profit when, supposedly, everyone else is. There are also other emotions, such as anger and disappointment, that can influence … Read more The Importance of Trading Psychology and Discipline

Characteristics of Great Traders

1. 10,000 hours The greatest traders understand that trading much like being a doctor, engineer or any other focused and technical endeavor requires time to develop and hone the skill set. Now you wouldn’t see a doctor performing open heart surgery after 3 months on a surgery simulator. Why would trading as a technical undertaking … Read more Characteristics of Great Traders

The Essence of a Trading Process

At the broadest level, trading consists of analyzing, synthesizing, and doing. Analyzing is extracting information from markets, immersing ourselves in data.  It is our look through the microscope. Synthesizing is assembling those data into a coherent picture, extracting pattern and meaning from the reams of market information.  It is our telescopic view. Doing is taking … Read more The Essence of a Trading Process

Why do gamblers keep going back despite losing most of the time?

Any quick drive through Las Vegas makes it pretty clear who is rolling in the money – the Casinos! Why do gamblers keep going back despite losing most of the time?  Misplaced hope, fantasies about the big win, promising themselves they will walk away when they are up and still winning, and probably the inability … Read more Why do gamblers keep going back despite losing most of the time?

Want to Do Full Time Trading ?

During my Trading session most of traders I interact with want to become  Full time trader, They want to ‘Make enough money to leave their job and become independent.’ Well it might sound exciting but the reality is not what it seems. Let me give  you a blueprint what should be the thought process before … Read more Want to Do Full Time Trading ?

Realistic Goals as a trader

If you want to be a successful trader, You need to have a VISION on what you want to do and  goal setting is the first thing traders should do. Unfortunately, many traders jump right into trading without giving the first thought to where they’d like their new found profession to take them. As per … Read more Realistic Goals as a trader

A Trader’s Self-Evaluation Checklist

Excellent Article from Brett N. Steenbarger, Ph.D. 1) Self-talk while trading – Is it angry and frustrated; negative and defeated? How much of your self-talk is market strategy focused, and how much is self-focused? Is your self-talk constructive, and would you want others to be talking with you that way while you’re trading? 2) What … Read more A Trader’s Self-Evaluation Checklist