For the most part, a typical trader’s perception of the risk on any given trade is dependent on the outcome of his most recent two or three trades. But the most successful trader’s perception of the risk is not affected by this personal, psychological variable. As you may believe, these traders did not initially have these […]
.I’ve been trading since 1999 and have met a plethora (my big word for the day) of traders from all over the world. Some of them trade forex, some trade options, and some trade futures. Some are young and some not so young. Some are male and some not so male, (in other words female). […]
The amount of difficulty you have in completing this exercise will be in direct proportion to the degree to which these conflicts exist.
I don’t follow the general market too much anymore, I find it just confuses me and has a tendency to influence my trading. However, I did take a look at a chart of the SPY the other day and the next thing I knew I was drawing trendlines on it – some habits die hard. […]
It’s just a Game of Probabilities Successful trading is learning that this business has nothing to do with being right or wrong on any given trade. The best traders may have just as much negative emotional baggage as unsuccessful traders. But as long as they legitimately define trading as a probabilities game, their emotional response […]
Mark Douglas’ excellent book, Trading in the Zone explores the five fundamental truths in trading. Five Fundamental Truths in Trading To think in probabilities, you have to create a mental framework or mindset that is consistent with the underlying principles of probabilities. A mindset that understands probabilities believes: Anything can happen. You don’t need to know […]