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Trading Educators Blog

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Jun
13

Distraction

Distraction is not something you can afford. If you cannot be fully focused on the price action and on following your trading plan, you are going to frequently find yourself in the situation you describe. The best rule a trader can follow is to focus on the action, not the outcome. Yes, I know that you, like many others are attracted to trading for the rewarding profits that can be made. You feel ...
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78 Hits
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Jun
13

You Need Control

The need for control is the biggest psychological impediment to profitable trading. Traders strive to control the markets, but in the end, they find that they must accept their fate and settle for controlling their emotions. When your money is on the line, it's difficult to remain calm, rational, and in complete control. You want to win, and there is a strong need to want the market action to fall...
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143 Hits
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May
22

Believe in Trading

​ Is there anything we can believe when it comes to trading? Is it all lies and fakery? Trading is a challenge. Tens of thousands are drawn to trading, but few last more than a few months. Trading is presented in such a way that it appears to be easy, so it's difficult to face the truth that trading is difficult—at least until you can get the hang of it. Many beginning traders need to win. They ar...
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192 Hits
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May
10

Is Trading all Lies and Fakery?

​ Trading is a challenge. Tens of thousands are drawn to trading, but few last more than a few months. Trading is presented in such a way that it appears to be easy, so it's difficult to face the truth that trading is difficult—at least until you can get the hang of it. Many beginning traders need to win. They are hoping that the huge profits they make trading will solve many problems in their liv...
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243 Hits
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Apr
04

Turning Points

To the best of my knowledge, no one has ever figured out a truly accurate way to figure out future turning points. As far as I know, it has never been done. I don't believe that it will ever be done. I have encountered traders who have told me that so-and-so does it, but I have never seen the proof. Nevertheless, I'm willing to listen. I used to live in the "show-me" State of Missouri, so show me!...
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320 Hits
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Mar
15

Mental Momentum

​Mental Momentum  drawdown, you can feel a little disappointed, a little stunned, as if you have fallen, and you are having trouble getting up. After you've made a series of successful trades, however, you can feel much more powerful, as if you can relax a little bit. And when you feel relaxed, you also feel creative, and can think of winning strategies. Everything seems to click and you star...
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294 Hits
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Mar
14

Confidence

A few years ago I had an interesting conversation with Joe about "what makes a trader a successful trader". We discussed this over several days because we wanted to find out how we can help struggling traders to enhance their trading. We finally came to the conclusion that "confidence" is what makes a huge difference. A trader can have a good system, good money and risk management in place, good u...
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373 Hits
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Mar
07

Striving for Perfection

You will never be a perfect trader. However, as traders we have a strong need to want complete control over the outcome of a trade. We want to believe that if we analyze the markets long enough, we'll have perfect knowledge and we can trade to perfection. But such desire leads to wrong assumptions that can do us more harm than good. Assuming we must have control restricts our actions and reactions...
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397 Hits
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Aug
24

A True Passion for Trading

I believe that to be a truly successful trader you have to have a true passion for trading. This is probably true for any field of endeavor. I believe that the people who do best are not primarily motivated by fame, glory, respect, or status. They are driven by the pure love of the what they do. Winning traders, similarly, have strong interests in the markets, and this passion is the driving force...
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397 Hits
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Jun
06

Efficiency and Success

How much time do you spend preparing for the trading day? Do you spend hours scouring the markets for a winning trading opportunity? Do you watch hours of commentary or read all the major financial newspapers? You don't need to spend hours and hours reading about the markets if it doesn't directly lead to a profit. For example, most media coverage of the markets is for entertainment value, so spen...
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445 Hits
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Nov
22

Is learning the trading business like learning any other business?

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 automatic...
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821 Hits
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Jul
28

Admit when you are wrong

Recently I heard another tale of woe involving the failure to admit being wrong. This man followed a familiar path. As a day trader in the E-mini S&P 500, he first contacted me to tell me that he was unhappy with the data he was receiving. He wanted to know if I could recommend a good trading program for him. I mentioned a couple of them to him and he decided on one. Another interval of time w...
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May
20

Creativity in your Trading-the Spiritual Factor

Creativity in your Trading-the Spiritual Factor
I was asked the following question: “Joe, is it important to be creative in your trading?” I’m not sure I can describe it in terms of importance.  The creative process is somewhat of a mystery, even to scientists who study it, but that is only because scientists do not recognize the spiritual factors of our lives and consequently in our trading. The Bible says: “There is a spirit in man.”&nbs...
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1199 Hits
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Apr
05

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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Mar
08

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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1304 Hits
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Mar
01

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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Feb
09

About Change

People don't want to be changed. They don't want to be told that they need to change. Do you ever find yourself struggling in those areas? Thank you for your honesty. If there is a struggle, that means there is a battle for truth. If you're not battling, you've already lost. Truth has been lost and deceit has won. We must come to a place where we are willing to unclothe our soul, ultimately, compl...
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Jan
12

Support and Resistance

I received a couple of emails asking whether or not I believe in support and resistance. In fact, one subscriber said if I didn't believe in support and resistance, then I couldn't possibly believe in trend! Why? Because in all cases the situation ends. Here's what I believe: The trend is your friend until the end. The swing is the thing until it goes "ding." What is support and what is resistance...
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1290 Hits
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Jan
12

Do Something Else!

You need to find other things to do while padding the time waiting for better trades. Try to study the markets or different ways of trading, or simply do something completely different like going to the beach. It is critical that you learn to enjoy yourself in ways other than being in a trade. The fact is, if you are trading in a professional way, you are out of the market much of time. So you nee...
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1213 Hits
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Dec
22

Optimized Entry or Exit

Optimized entry (green vertical line on the chart below) or exit ( red vertical line on the chart below) is part of seasonal patterns. For example: the spread X–Y shows a strong seasonal up move in July with an optimized entry date on July 3 and an optimized exit date on July 28. This means “usually” the spread moves up between July 3 and July 28, but this is just based on statistical data of the ...
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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.