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Avoiding Stress

Avoiding Stress
Trading can be difficult. It often requires you to look for trading opportunities during off hours. You can be making the mistake of thinking you have to take trade after trade during the trading day. When you think you have to trade all the time, trading can become a real labor, something difficult to keep at doing. Even the most exciting, rewarding activity can become commonplace if you drive yo...
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Your Worst Enemy

Your Worst Enemy
  In general, we are our own worst enemy when it comes to trading. If you're not careful, you will be your own worst enemy. 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....
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When it comes to trading it seems that the more you know, the less you know, and the more you become confused.

When it comes to trading it seems that the more you know, the less you know, and the more you become confused.
  People have the tendency to believe that the accuracy of their forecasts increases with more information. This is the illusion of knowledge - that more information increases your knowledge about something and improves your decisions. However, this is not always the case - increased levels of information do not necessarily lead to greater knowledge. There are three reasons for this. First, s...
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Unlike many games and sports, trading has an additional factor: the market!

Unlike many games and sports, trading has an additional factor: the market!
Imagine playing tennis if the ball had a mind of its own, if it could run off to the sidelines and bounce up and down for a minute or two. Imagine a game of golf in which the ball could occasionally go off down the fairway, dance about, and do whatever it wanted. Imagine a chess game in which the pieces suddenly became worthless, or a hockey game in which the puck suddenly went against everything ...
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Anticipation regarding Losses

Anticipation regarding Losses
Trading is a business where you expect to see more losing trades than winners. Expecting to win is apt to produce more disappointment than joy. That doesn’t mean you won’t have a high percentage of winning trades, but it is safer to anticipate otherwise. To the beginning trader, especially, this fact of life can be stress producing and somewhat disappointing. How you cope with losses is all a matt...
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How to Approach Trading - Part 7

How to Approach Trading - Part 7
Conclusion It is critical to develop a well thought out and organized trading plan. It is then important to have the discipline needed to follow it. Diversify your trading into several unrelated markets, or focus on one market and time frame where you have seen you can make money. Trading, by its nature is not investing. Trading requires consistent monitoring on at least a daily basis because of t...
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How to Approach Trading - Part 6

How to Approach Trading - Part 6
Manage the Trade Once you get into a trade, you must eventually get out. Some argue that this is more important than where you get into a trade. My experience has been that any fool can get into the market, but it takes a successful trader to consistently get out with a win. As I follow the markets, I find there are four reasons to get out of a trade. Prices move significantly against my position....
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How to approach trading - Part 5

How to approach trading - Part 5
Follow the Markets After you've determined your strategy and the market or markets you will trade, you can start following the price action. It is important to follow each market consistently and see the trading opportunities as they develop. Jumping around from one market to another often leads to missed or late execution of your method. I think it's important to let the market tell you what to d...
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Can Trading be trained?

Can Trading be trained?
  Please listen to the following podcast when you have a few minutes: https://soundcloud.com/bloomberg-business/the-incredible-true-story-of-the-real-life-trading-places I found the podcast interesting because of a few facts I want to discuss in today’s blog post. First of all, I am also a believer that trading can be trained but not necessarily everyone can trade. Trading requires a certain ...
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How to Approach Trading - Part 4

How to Approach Trading - Part 4
Diversify:  Next, you'll need to choose which markets to follow. Diversification is one of the crucial factors in the success of some, but not all trading plans, and may in fact make the difference between success and failure of the plan. Putting all your eggs in one basket is not a good idea for some traders. This approach takes the position that rather than trading ten contracts in one mark...
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How to Approach Trading - Part 3

How to Approach Trading - Part 3
How to Get Started:  I've seen many different trading plans. Whether they're two paragraphs or ten pages long, they put forth a way of looking at the market and they attempt to create some framework for approaching the markets. A good plan will include a well-tested strategy, a trading method, or a setup. Having a positive expectation should allow you to have the confidence to start trading y...
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How to Approach Trading - Part 2

How to Approach Trading - Part 2
Discipline is the Key:  You will need discipline in several areas to be successful. First you'll need the discipline to make a plan, rather than shoot from hip. Without discipline, many approach the markets like a craps table and they can expect the same results; short-term successes based on luck and long-term losses based on randomness. Second you'll need the discipline to follow the plan. ...
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How to Approach Trading - Part 1

How to Approach Trading - Part 1
Develop a Trading Plan:  The main message I want traders to understand is how important the disciplined execution of a well thought out trading plan is in today's markets. Nobody knows for sure what a given market will do next. Having a plan of attack will allow you to successfully cope with the uncertainty that is an inherent part of trading. I think it makes good common sense to have a well...
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Do you think that what this guy wrote is true?

Do you think that what this guy wrote is true?
“You can get ahead of yourself in this game, and it’s dangerous to get cocky. But I’ve had times where for an hour I could do no wrong. I’m trading and 99 percent of the trades are good, they’re all for 30 or 50 contracts, and I’ll make 10 grand. Then I’ll overextend myself and maybe buy 10 or 15 contracts, fighting the trend just because I know prices have hit a support level. Then prices blow th...
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Jean1975
Mmhhh... Maybe this guy is telling the truth but i honestly doubt that a trader can be consistently successful without being able ... Read More
Sunday, 18 December 2016 15:24
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Looking at how the money supply affects trading in the markets.

Looking at how the money supply affects trading in the markets.
There are two important components of federal market activity which affect long- term economic activity and stock and commodity values; these are interest rates and money supply. A contracting money supply was one of the factors that caused the Great Depression of the 1930's. In the early 1980's most traders focused almost totally on the money supply figures, which would cause cash bonds and T-Bil...
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Simplicity of Trading

Simplicity of Trading
Trading requires that you take decisive action. Implementing a successful trading plan quite often requires that you make quick decisions when the right market conditions come into play. The more complicated you make your trading, the harder it becomes to make quick decisions. We all know it can be hard to make trading decisions when your money is on the line. Most of us have a natural desire to a...
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"Once I’ve achieved success as a trader, then what? I’ve heard that after a while trading can become boring."

"Once I’ve achieved success as a trader, then what? I’ve heard that after a while trading can become boring."
Question from a subscriber: " Once I’ve achieved success as a trader, then what? I’ve heard that after a while trading can become boring ." I know you would all like to have that problem, but I can vouch for its being true. I always have to find new ways to trade or I do become bored. However, I have never run out of ways to trade that remain exciting, at least for a fairly long time. After the ob...
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Recent Comments
Jean1975
For sure good trading is not exciting, because long lasting success comes from always doing the right small things day in and day ... Read More
Friday, 02 December 2016 07:14
Joe Ross
Great! You haven't reached that level yet, and maybe you never will. There's another item I haven't previously written about, but... Read More
Saturday, 03 December 2016 08:45
Jean1975
Wow... Outliving the own trading abilities looks like another gift of the Lord! It should be the great cycle of the life. I mean,... Read More
Sunday, 04 December 2016 09:46
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I Find Myself with an Attitude of Gratitude

I Find Myself with an Attitude of Gratitude
Dear Friends, Whenever this time of year rolls around, I find myself with an attitude of gratitude. This week we celebrated Thanksgiving Day. Although "Thanksgiving" is not celebrated here in Uruguay, many living here celebrated at various places around the country. There were at least fifty people at the gathering my wife and I went to. Trading and markets have been a major part of my life for al...
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Reaching Your Trading Goals

Reaching Your Trading Goals
As a trader, it's essential that you set specific goals. Trading is chaotic enough without trying to achieve unstructured goals that are difficult to manage and reach. Making profitable investments requires you to prepare carefully. You have to develop hypotheses regarding current market conditions. You have to devise ways of identifying setups and determine how and when to enter and exit the trad...
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Develop a Trading Plan

Develop a Trading Plan
The main message I want traders to understand is how important the disciplined execution of a well thought out trading plan is in today's markets. Nobody knows for sure what a given market will do next. Having a plan of attack will allow you to successfully cope with the uncertainty that is an inherent part of trading. I think it makes good common sense to have a well thought out plan of attack fo...
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Derivative transactions, including futures, are complex and carry a high degree of risk. They are intended for sophisticated investors and are not suitable for everyone. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results, and all of which can adversely affect actual trading results. For more information, see the Risk Disclosure Statement for Futures and Options.