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Trading Educators Blog

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Feb
06

Clear Perspective

Clear Perspective
There are times when our judgment is cloudy. Perhaps we want to win so badly that we optimistically see trading opportunities that aren't there. At other times we may be so stressed out, busy, and tired that we can't concentrate, and end up making an impulsive decision or a trading error out of a sense of frustration. As much as we search for a rational, robot-like perspective on the markets, it i...
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Thomas Quest
true, well written, warm-hearted, just the way a trader needs - thank you!!
Friday, 07 February 2020 10:49
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Jan
31

Wiping out the Trading Account

Wiping out the Trading Account
​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 ...
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Jan
30

So, You Made a Mistake…

So, You Made a Mistake…
​John is kicking himself right now. He just made an unexpected losing trade and he feels especially down. He expected to make a killing, and he was looking forward to winning and celebrating big. He thought he had done everything to prepare for the trade. He had looked at the moving average to discern the trend. He looked at the highs and lows of the stock for the past two months, and set his stop...
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630 Hits
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Jan
23

Record your Trading

Record your Trading
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...
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498 Hits
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Jan
23

Question from Student

Question from Student
 First and foremost, thank you for sharing your valuable knowledge, its much appreciated. For scalping/daytrading CL, EC, GC, RTY, what would be the suggested time-frame to set up the charts as per the Trading with More Special Set-Ups Webinar--Stochastic 5,3,3 and BB 18,2, but what time-frame do you suggest, 3min/9min? The time frame and the setups are independent of each other—mutually excl...
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Jan
16

Beliefs About Randomness: Do They Impact Profits?

Beliefs About Randomness: Do They Impact Profits?
​As you trade, do you ever just think, "It's all just random, why even bother trying at all?" If you passively think you have no control, you may end up making less money. A team of scientists studied a group of university students who played a computer game of roulette. All participants reported they had gambled recreationally in the past year. Researchers asked participants to describe the strat...
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Jan
09

Over-Trading

Over-Trading
​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 tim...
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Jan
09

Self-Control

Self-Control
​Self-control is often the key to trading success. Masters of the market are disciplined. They don't sporadically act on a whim. They develop specific trading plans and follow them. Trading is largely a matter of capitalizing on odds. If you assume that a given trading strategy has a past performance record of 50%, for example, it's a matter of odds as to whether that particular strategy will obta...
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Jan
02

Record your Trading

Record your Trading
​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 ...
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Jan
02

Look at the Facts

Look at the Facts
​Have you ever made a small losing trade and thought, "It's alright.I'll win on the next one." The next trade comes along, and you lose. And then the next one is a loser, and so on, and so on...until finally, you are in a severe drawdown. Before you dig yourself into a hole that is virtually impossible to climb out of, it is vital for survival to constantly monitor your progress. Take a good hard ...
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Dec
26

Repeating the Same Mistakes

Repeating the Same Mistakes
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...
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Dec
26

Fighting Back

Fighting Back
​It's not the number of times you fail that matters. It is all about getting back up after you've been knocked down. Ask any successful person and you'll find that he or she has experienced a mountain of failure. Trading is a challenging profession. Few make it, and of those who do, many eventually blow out their accounts and give up the profession. What's the difference between the successful, wi...
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Dec
19

Who are you?

Who are you?
​ 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...
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Dec
19

Discipline and Temptation

Discipline and Temptation
Looking at your screen can be much like looking at a slot machine, and stopping yourself from dropping a dollar in the slot and pulling the handle. You must restrain yourself from making an impulsive trade, but there's a very human tendency to seek out excitement and receive a quick reward. You must fight temptation and maintain self-control, however. Electronic trading platforms have made trades ...
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Guest — J
Merry Christmas for everyone here.
Monday, 23 December 2019 13:19
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Dec
12

Trading is a Business

Trading is a Business
​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...
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Dec
12

The News

The News
​What are the latest headlines? Do they impact the markets? Well, it depends. On Monday, October 17, 2005, here were some of the headlines that may have impacted you. GM reached a tentative agreement with the union. What's the impact? It seemed to satisfy long term investors. Company profits are bound to improve with lower labor costs, right? The Supreme Court refused to allow the government to pu...
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Dec
05

Getting Help

Getting Help
​If you're like most modern traders, you try to do it all. You study charts and historical data for trading opportunities. You struggle to devise a thorough, well-designed trading plan. You enter trades on your own electronic trading platform, and you monitor your trades to make midcourse corrections when necessary. Depending on your personality, available resources, and time commitment, you may w...
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631 Hits
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Nov
27

Is learning the trading business like learning any other business?

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 automati...
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534 Hits
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Nov
27

Hindsight

Hindsight
Do you remember your first impressions of trading? Perhaps you were young and had a strong desire to achieve early success, but if you were like most people, you had unrealistic expectations about the financial resources and skill level that were needed to trade profitably. You probably figured that you could just open a typical online brokerage account and turn $1,500 into a fortune. You probably...
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Nov
21

Ed Seykota Golden Trading Rules

Ed Seykota Golden Trading Rules
 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 Vil...
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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.