In general, we are our own worst enemy when it comes to trading. There are many ways to sabotage yourself as a trader.Not creating a trading plan, or creating one and then not following it are two of the most common.Some ways to self-defeat are deep seated; they lurk at the back of your mind and work behind the scenes. These are often self-image problems that can rise from as far back as early chi...

​In general, we are our own worst enemy when it comes to trading. There are many ways to sabotage yourself as a trader.Not creating a trading plan, or creating one and then not following it are two of the most common.Some ways to self-defeat are deep seated; they lurk at the back of your mind and work behind the scenes. These are often self-image problems that can rise from as far back as early ch...

​In general, we are our own worst enemy when it comes to trading. There are many ways to sabotage yourself as a trader.Not creating a trading plan, or creating one and then not following it are two of the most common.Some ways to self-defeat are deep seated; they lurk at the back of your mind and work behind the scenes. These are often self-image problems that can rise from as far back as early ch...

​One of the most important things to learn in this life is how we ourselves behave, not only when we are acting on our own, but when we are part of the crowd. And what few of us understand is how many of our important daily actions are not thought out in advance. We are all attempting to survive in what is basically a hostile environment. Many of our actions are in response to some sort of stimulu...

​I've read this phrase over and over again in scam emails, Twitter posts of different Gurus and other sources mainly because of marketing reasons using the current panic in the markets to sell their wisdom.But all I know from brokers I know is, that many of their clients are losing or already have lost tremendous amounts of money because they only think in terms of "how much money can be...

​Traders are willing to gamble a lot of money to avoid a potential loss, rather than immediately accepting a smaller but certain loss. Likewise, traders will hold on to a losing trade, and continue to watch it loses money, rather than face the loss. Why is it that we see money as being so important? The answer stems from our culture. What we esteem as good things are associated with money. Money i...

Over-trading fits in under the topic of risk management. We are talking "risk control."First, I would say that risk management is one of the most important things that you really need to understand.Second, you must begin to under-trade, under-trade, under-trade. Whatever you think your position ought to be, cut it at least in half. My experience with novice traders is that they trade 3 to 5 times ...

Paper trading cannot replace real trading for many (mainly emotionally based) reasons, but it can be an important part of the process of finding and trading a new method. First you might have an idea about how to trade a market based on price bars, candlestick charts, indicators, or whatever you use for your trading. Next you would back test it with older data. You would do it manually or by using...

​In most other fields of activity we need to convince people around us that our opinion is correct. In the market, it just doesn't work that way. It's suicide to try to trade from your opinion. Instead of insisting that you are right, you have to get rid of your ego and any opinion you have of the market. What you want, is simply to be in tune with what's happening at the moment. Connect to the re...

​Most successful traders failed at some point in their careers and wiped out their account. Many traders lose because they do not understand the nature of the decision-making process, which should be based on rational price action analysis versus emotional, irrational reactions to price action. A reason should be required for each market action taken. When fear exits a trade, it is more difficult ...

You must be disciplined in following the plan of your trade religiously. Once you have closed your position, you should record everything about the trade. Write down where you wanted to enter the trade, what you expected out of the trade, and what you actually did get out of the trade. Make sure to include notes that will help you learn from the trade, reasoning what actually took place once you e...

​Over-trading fits in under the topic of risk management. We are talking "risk control."First, I would say that risk management is one of the most important things that you really need to understand.Second, you must begin to under-trade, under-trade, under-trade. Whatever you think your position ought to be, cut it at least in half. My experience with novice traders is that they trade 3 to 5 times...

​You must be disciplined in following the plan of your trade religiously. Once you have closed your position, you should record everything about the trade. Write down where you wanted to enter the trade, what you expected out of the trade, and what you actually did get out of the trade. Make sure to include notes that will help you learn from the trade, reasoning what actually took place once you ...

Anyone is allowed to make one mistake. When the mistake is repeated, watch out! The third repetition of the same mistake constitutes self-destructive habitual behavior that must be reversed. Stop all trading immediately, and thoroughly examine your self-discipline. Once the reason for the repetitive mistake is understood (usually fear, anger, greed, or guilt) it must be corrected before trading ma...

​ A thorough understanding of who you are and what makes you tick is essential in trading. How and what you think, what you believe, and how you behave are critical parts of winning in trading as well as winning in life. It seems very few traders understand, or are aware of this subtlety in the trading profession. You can get by without knowing who and what you are in most other careers but in tra...

​Learning the business of trading is basically no different from learning any other business. The important thing is that you realize that trading is a business that must be studied and learned correctly, because that determines your success or failure. Winning means learning major guidelines and concepts that you repeat so often in your own behavior that they become good habits. These good habits...

​The importance of how you learn the business of trading cannot be minimized because of the factors that determine your success or failure. Learning the business of trading is basically no different from learning any other business. Winning means learning major guidelines and concepts that you repeat so often in your own behavior that they become good habits. These good habits then become automati...

 Here is what I found on Wikipedia about Ed Seykota:Edward Arthur Seykota (born August 7, 1946) is a commodities trader, who earned S.B. degrees in Electrical Engineering from MIT and Management from the MIT Sloan School of Management, both in 1969. In 1970, he pioneered Systems trading by using early punched card computers to test ideas on trading the markets. Seykota resided in Incline Vill...

I like Marty Schwartz and his trading book "Pit Bull" a lot. It is an honest book about a trader who had his ups and downs in the market as we all do. In his book he writes, he made his highest progress, when he stopped trying "to be right" with the trades and instead followed the approach of "making money".Here is what I found on Wikipedia about him:Martin S. Schwartz (Buzzy, born March 23, 1945)...

​During the next few weeks, I want to have a look into the "golden rules" of famous traders with the idea, to find something they all have in common.I am starting with Paul Tudor Jones. Here, what I found in Wikipedia about him:Paul Tudor Jones II (born September 28, 1954) is an American investor, hedge fund manager, and philanthropist. In 1980, he founded his hedge fund, Tudor Investment Corporat...