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Trading Educators Blog

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Nov
01

Self Control

To become a truly successful trader you must become a truly committed trader. How do you get yourself to be in control? Statistics and society may predict, but you alone determine whether you will succeed or fail. You alone are in control. You alone must take responsibility for your performance and your life. There are always tremendous opportunities in the markets. It is not what happens; it is w...

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  2231 Hits
Sep
26

Be Aware

​Beginning traders may make trade after trade and watch their account balance dwindle with each trade. They may feel unintelligent and thoughtless and think, "Why am I making so many losing trades?" At times they may wonder if they are thoroughly incompetent. But it's all a matter of perspective. If you aren't trading profitably, it isn't because you can't. It isn't because you have bad luck. It i...

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  2154 Hits
Aug
22

Regrets

​Fear and greed drive market action. We enthusiastically put on trades when we think a huge profit is assured, but when we see the market shift dramatically, we get out as quickly as possible. We fear being trampled by the masses as they all rush to sell. Fear and greed are powerful emotions that underlie the actions of the masses, but behavioral economists argue that regret is equally powerful. R...

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  2534 Hits
May
30

Worry-Free and Profitable

Even though there is great interest in the markets these days, and more opportunities than usual, it's vital to approach trading with the proper mindset. You can't try to do too much, too fast. Successful traders approach trading with a carefree, focused attitude and putting added stress on yourself interferes with attaining this peak performance mental edge. When you are in the proper mindset, yo...

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  2030 Hits
Mar
27

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. Prices stop mov...

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  2283 Hits
Mar
21

Diversification

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 market, look to trade smaller amounts in several different markets. The ai...

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  2303 Hits
Feb
21

Stop Management

​Richard Wyckoff wrote: "My stop was moved down so there couldn't be a loss, and soon a slight rally and another break gave me a new stop, which insured a profit, come what might… I strongly advocate this method of profit insuring. The scientific elimination of loss is one of the most important factors in the art, and the operator who fails to properly protect his paper profits will find that many...

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  2453 Hits
Feb
08

Visualization

Under what conditions would you like to trade if you had your choice? You would probably want to trade in a strong bull market, be way ahead so that a loss wouldn't hurt at all, and have a foolproof trading plan. In addition, you would want to have a mental edge. You should be in a good mood, alert, and ready to take action. We can't always trade under such ideal conditions, however. If you are a ...

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  1866 Hits
Jan
31

Emotions

​Letting your emotions influence your trading decisions is virtually a guarantee that you will lose as a trader. If you are going to survive as a trader you have to bring your emotions under control. If you find that your emotions are swinging up and down as you trade, you have to confront the resulting feelings and deal with them. No one can do this but you. One way to keep emotions under control...

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  1996 Hits
Dec
06

Talking to Myself

I have to admit I do talk to myself at times, maybe even a lot, especially when I'm facing a loss. Let's say I'm down a bunch of points and it came as the result of a surprise move in the market. The temptation is to think, "I have to find a way to get it back." I hate ending the day down a bunch of money. However, if I give in to that thought, I am focusing on the loss and I'm no longer in the ma...

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  2324 Hits
May
09

Why Stops

​Would you ever think of jumping out of an airplane without a parachute? Of course not, but that's what some people do when they trade the markets. They are very willing to put their money on the line, but they don't have much to protect them from a major disaster. Placing a stop, for example, can prevent you from allowing a small loss to turn into a big one, but many traders avoid placing stops. ...

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  2109 Hits
Jan
11

The "Now Trap"

There is a great attraction in all aspects of the modern age to immediacy. Likewise, most of the trouble in trading occurs through this love affair with the "now," with impatience, and with trying to hurry up the trading game. Traders want to make money in the markets now, today, and not tomorrow or next week. We love the Now. We are devoted to it and give it much weight. This problem may be espec...

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  2525 Hits
Mar
31

Maintaining Discipline: When Past Choices Influence Future Decisions

Traders and investors have difficulty "letting their profits run." When you see your investment increase in value, it's hard to avoid selling early to lock in profits. But not every trade goes your way, so when you come upon a trade that does produce a profit, it's vital for your long-term success to optimize the profits for that particular trade. You must make more profits on your winning trades ...

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  2458 Hits
Jun
01

Fear of missing “the big one”

The best way to handle that kind of fear is walk away from the situation. Get up, and walk away from the computer and any news you may be watching. Remove yourself from whatever it is that triggered the fear. Do anything that will take you out of the fear/panic mode. Don’t sit down to trade again, and don’t return to the markets until you have managed to achieve some emotional control over your fe...

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  2877 Hits

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.