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Trading Educators Blog

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How do you go about making trading decisions?

How do you go about making trading decisions?
Careful analysis of all possible alternatives and all possible consequences of your trading decisions is the first step in good decision-making. Make every attempt to avoid impulsive trading decisions, invariably these lead to taking unnecessary risks. Strive to have a clearly defined trading plan, but keep it as simple as possible. Chart the equity of your trading method so that you can quickly k...
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Is it really possible to be consistently profitable?

Is it really possible to be consistently profitable?
When you are in a slump and feeling frustrated and disappointed, you tend to think, "I'll never be profitable, and there is nothing I can do about it." The consequences of such reasoning are that you'll never feel like putting on a trade ever again. It is better to think, "Profitable trading is almost impossible, but I can learn how the markets work, develop the necessary skills, and eventually ac...
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Avoiding Stress

Avoiding Stress
Trading can be difficult. It often requires you to look for trading opportunities during off hours. You can be making the mistake of thinking you have to take trade after trade during the trading day. When you think you have to trade all the time, trading can become a real labor, something difficult to keep at doing. Even the most exciting, rewarding activity can become commonplace if you drive yo...
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Your Worst Enemy

Your Worst Enemy
  In general, we are our own worst enemy when it comes to trading. If you're not careful, you will be your own worst enemy. There are many ways to sabotage yourself as a trader.   Not creating a trading plan, or creating one and then not following it are two of the most common.   Some ways to self-defeat are deep seated; they lurk at the back of your mind and work behind the scenes...
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When it comes to trading it seems that the more you know, the less you know, and the more you become confused.

When it comes to trading it seems that the more you know, the less you know, and the more you become confused.
  People have the tendency to believe that the accuracy of their forecasts increases with more information. This is the illusion of knowledge - that more information increases your knowledge about something and improves your decisions. However, this is not always the case - increased levels of information do not necessarily lead to greater knowledge. There are three reasons for this. First, s...
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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 preperation 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.