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Trading Educators Blog

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Sep
05

Getting in Step with the Market

Getting in Step with the Market
​Early in the trading day, as part of your daily preparation (you do have a daily preparation, don't you?) it's helpful to practice a little to get a "feel" for what you might do and how you might trade. One way to do it is to make a few small trades, using just a small percent of your normal trading size. Putting on a small position usually helps you focus. Once you've entered the market, see how...
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Sep
05

Be Flexible

Be Flexible
​As traders in the markets, it's informative to study everyday examples of mass psychology. Although humans are highly intelligent, they can act like cattle blindly following the leader of the pack to the slaughterhouse. For example, have you ever observed how people drive in busy rush hour traffic? On a crowded freeway, it's common to see people refuse to acknowledge that the flow of traffic has ...
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Aug
29

Emotions

Emotions
​Winning traders are extremely disciplined. They wisely study the markets, devise a trading plan, and follow it. They control their impulse to abandon their plans prematurely, and they don't allow emotions, such as fear and greed, to influence their trading decisions. In the trading profession, emotions often get a bad rap, however. There are critical moments of investing when it's vital to contro...
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Recent Comments
Guest — Gary Dear
Joe, good morning, and thanks very much for your article entitled "Emotions". ... Gary Dear
Friday, 30 August 2019 08:13
Denise Ross
Gary - Joe asked me to post a reply as he is unable to at this time: "Hi Gary, It’s been a while since we heard from you. It’s r... Read More
Sunday, 01 September 2019 18:47
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Aug
22

Successful Trading

Successful Trading
​Because we don't know what "successful" means to every individual, we should divide traders into different groups. I think most traders can be found in one of the following groups: Group One - these are mainly traders new in the trading business. They have read a book or two and they find trading very interesting, but they still don't know where to start. Group Two - these are the traders who alr...
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Recent Comments
Guest — fr
HELLO ANDY. aRE THOSE COUNTING PERCETAGE TOGETHER CORRECT? 75+25+ 10+2=112%
Friday, 23 August 2019 09:34
Andy Jordan
Yes, because you can not count them together. 25% are trading break-even or better. The 10% and 2% fall also under the 25% (or bet... Read More
Friday, 23 August 2019 10:19
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Aug
22

Regrets

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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1265 Hits
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Aug
15

Stress Errors

Stress Errors
Have you ever been so excited about a trade that you couldn't sleep at night? Or perhaps you are trying to dig yourself out of a hole and worry has taken a toll. Studies of disasters, ranging from major environmental catastrophes to minor laboratory accidents, happen when people are under extreme stress or experience physical exhaustion. When people are tired, there's an increased risk of disaster...
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837 Hits
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Aug
08

I just can’t seem to accept uncertainty and risk. What can I do?

I just can’t seem to accept uncertainty and risk. What can I do?
​I'll try to give you a few things to think about, but unless you can overcome your inability to accept risk, you don't have much of a chance to make it as a trader. Trading and risk are virtually one and the same. Shorter term trading isn't about using a buy-and-hold strategy, and minimizing risk by holding on for the long-term. Short-term traders capitalize on volatility and the fact that volati...
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Aug
04

Creative Idea

Creative Idea
​The winning trader stays ahead of the crowd. In ever-changing market conditions, you have to think of new, innovative trading ideas. But it isn't always easy. There are times when you feel mentally stuck and unable to think creatively. When you are feeling a little stuck, there are specific steps you can take to get your creative juices flowing. Creativity can't be forced. If you try to force you...
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Guest — joz
good guide how to help yourself to find way of doing something. Thanks.
Monday, 19 August 2019 04:32
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Aug
01

Should I reverse when I am having a loss?

Should I reverse when I am having a loss?
Professional day traders reverse their positions about 60% of the time when they take losses? Why do they do this? The market should not have technically reached the exit price, which is placed where the intraday market trend may have reversed the short term trend. Consider a market that moves a three-day average range above the opening price then breaks sharply to the downside and posts new intra...
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750 Hits
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Aug
01

Three Traders

Three Traders
​The expectations you hold about where your trading career is going can have a powerful impact on what you do and how you do it. Consider three traders, Jake, Steve, and Paul. Each has a different outlook, and this outlook dictates how they approach the markets. Jake is a pessimist. He wants to become a profitable trader, but his attitude gets in the way. He thinks, "I just don't have the talent t...
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941 Hits
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Jul
25

Beginning traders main mistakes

Beginning traders main mistakes
​There are several major mistakes that traders, especially beginning traders, are making much of the time. Here is a (for sure not complete) list. Mistake #1: Because of hype they hear from many sources, beginning traders believe they can learn trading in a couple of days or weeks. The truth is, becoming successful in the trading business takes much longer and is harder to achieve than it seems in...
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723 Hits
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Jul
25

Concentration

Concentration
​Your ability to concentrate fully and intensely can mean the difference between consistently taking home huge profits and barely staying above water. It's really important that you pay attention to multiple sources of information, sift through them, prioritize each separate piece, and make a wise decision once all information has been scrutinized. You can't be distracted and unfocused while formu...
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904 Hits
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Jul
18

Stereotypes

Stereotypes
​Marvin has been following a company stock for the past year. It's a great company with solid management, high sales growth, and consistently high earnings. It is in a booming industry sector and a favorite of the media. After a year's worth of careful deliberation, Marvin has decided to pull the trigger and buy a large position. He can't see what can go wrong. What can go wrong? It's a good compa...
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931 Hits
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Jul
12

Controlling Emotions

Controlling Emotions
​Winning traders cannot afford to be influenced by their emotions. The nature of trading demands an objective, logical approach. If you experience extreme excitement after a win and extreme disappointment after a loss, you will be living on an emotional roller coaster: up and down, up and down. Many beginning traders have head knowledge of what it means to control their emotions. They can imagine ...
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718 Hits
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Jul
12

Your Own Way

Your Own Way
​Don't follow the crowd! You've been warned over and over, but few are that independent minded. Breaking away is harder than it looks. We are all familiar with the rebel, the person who breaks all the rules and is skeptical of the status quo. At the other extreme, the ultra-conformist seems to follow the rules too blindly. Neither extreme is optimal for trading. It's necessary to find the right ba...
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941 Hits
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Jul
04

Evaluation of your Trading

Evaluation of your Trading
​Taking an honest evaluation of your own strengths and weaknesses is crucial to becoming a consistently profitable trader. If you can't identify those habits which continually make (or cost) you money, then you're just shooting in the dark. It's extremely important that you know things about yourself such as: The time of day you are most profitable. The position size that works best for you. Your ...
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742 Hits
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Jul
04

Trading Slump

Trading Slump
​Jake has just made three losing trades in a row? He decides he is in a slump and is now worried that he can't get out of it. But is he really in a slump? Perhaps he's just panicking for no good reason. He may just have a pessimistic attitude, but this might be enough to keep him stuck. Thoughts are powerful. The reality of the situation may not matter. All that matters in the end is your percepti...
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Jun
27

Shoulda-Coulda-Woulda Mentality

Shoulda-Coulda-Woulda Mentality
​Winners take credit for their successes and full responsibility for their losses. Losers blame others for their losses and take full credit for their successes. A "shoulda-coulda-woulda" mentality does more than characterize the losing trader, it prevents him from making positive behavioral changes. Acceptance of total personal responsibility is not an optional choice for a winner it is a mandato...
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760 Hits
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Jun
24

What is a mental stop and should I be using them?

What is a mental stop and should I be using them?
What is a mental stop? Why are traders afraid of them? Are they worthwhile? Why would anyone want to use a mental stop? Let's begin with why anyone would want to use a mental stop! It is usually preceded by your having been stopped out of the market only to have the market reverse and go the other way, causing you to miss a possibly profitable trade. That being said we can now address the question...
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636 Hits
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Jun
23

State of Mind

State of Mind
​Making profits as a trader is often a matter of trading in the proper state of mind. Trading expert Dr. Van K. Tharp, author of several best-selling books on trading psychology and head of the Van Tharp Institute, describes three states of mind that may dictate how you approach trading. As traders gain experience with trading the markets, they move from a "having" state of mind to a "doing" state...
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Guest — z
This is elaborated even deeper in the ancient text - bhagavad gita. the three states or "gunas" are modes of operandi for all livi... Read More
Friday, 28 June 2019 12:36
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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.