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Andy Jordan Educator for Futures Trading Strategies on Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook. You can read my bio by following this link.
Dec
06

Talking to Myself

I have to admit I do talk to myself at times, maybe even a lot, especially when I'm facing a loss. Let's say I'm down a bunch of points and it came as the result of a surprise move in the market. The temptation is to think, "I have to find a way to get it back." I hate ending the day down a bunch of money. However, if I give in to that thought, I am focusing on the loss and I'm no longer in the ma...
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106 Hits
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Nov
29

Pace Yourself

During ongoing activities, such as day trading, you have to learn how to pace yourself. This means alternating between times of intense activity with times of greatly decreased activity, times that require very little of your attention. These "rest periods" should take place when you do not have to quickly react to sudden market moves. This is hard advice to follow for some traders—paranoid, obses...
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141 Hits
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Nov
14

Practice

If you play tennis once a week against an opponent who plays tennis five times a week, who is likely to win? If you play chess or backgammon twice a year against someone who plays every day, who will mostly likely win? You don't have to start trading real money right away. Whenever someone goes through my mentoring program, there comes a time when I encourage the student to start paper trading bef...
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Nov
08

Counting the Cost

​ Almost anyone who wants to succeed needs to ask themselves certain questions before beginning to trade. Essentially, it is a matter of counting the cost BEFORE, not after you decide you want to pursue trading as a serious part of your life. What time period trader are you? How long do you feel comfortable holding a trade and how such financial risk can you comfortably assume on a one contract ba...
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122 Hits
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Oct
19

Many Kinds of Emotions Go with Winning and Losing

Once a trade is entered, there are two possible outcomes: Win or lose. Between the two is the breakeven point, and because it is in-between, it's psychologically significant. Losing is involved with fear and hope. Winning is involved with greed. When on the losing side of a trade, the breakeven point is a place that inspires hope. Being human we have a natural tendency to avoid risk and loss. When...
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151 Hits
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Oct
12

The Long Run Is Longer Then You Think

Many traders are smart enough to know that they will win in the long run by taking only the best trades, but become impatient due to the lack of anything happening. They forget that the long run can be "long". Taking only the best trades can be frustrating. They come along rarely, and even when they do there is no guarantee of winning with them. Long gaps occur in between. We can become angry and ...
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166 Hits
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Oct
05

How to handle fear?

​ Let's get one thing straight. Fear, for the majority of traders is a very real thing. You have it, I have it. Others have it as well. In order to become a professional trader, you must learn to deal with fear. The first step is to acknowledge that you have, which is what you have done. Once you admit to fear, you can begin to deal with it. When you notice the impulse to trade based on strong fea...
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192 Hits
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Sep
28

The Ideal Parameters for Successful Trading

Your trading goals and objectives must be possible to complete. They cannot be too abstract or too high. It is best to just execute a trade rather than being overly concerned with profits or achieving unrealistic performance standards. You must be able to intensely concentrate on what you are doing. While trading, it's vital that you have a detailed trading plan and control risk so that you can fo...
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183 Hits
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Sep
21

Being Flexible

By being flexible I mean that over time, your trading philosophy will undergo changes. These changes are brought about because of external events (economic considerations, natural disasters, political events, etc.), and because of internal events, usually my own mistakes. My views change as economic, political, and technological changes occur both on and now off our planet. My views change as I se...
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217 Hits
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Sep
06

Sometimes Others Get to Play and You Don’t

Sometimes in softball games, as a kid, they handed out the bats, balls and gloves, and there weren't enough to go around – so you had to sit it out. You had to sit on the bench and watch. The same thing happens in trading. Sometimes you don't get to participate. You must get used to the idea that sometimes you will sit in front of your charts for days or weeks, and nothing at all will happen....
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134 Hits
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Aug
31

Trading Enhancement – Meditation

​ As a professional trader, I try to enhance my trading on a daily basis. Learning how to trade is an ongoing process - a process that never stops. Those who know me or who have traded with me know that I am always looking for a simple and straightforward approach to trading. Yes, of course I am testing indicators, new chart patterns, new charting techniques, and anything else that is showing up o...
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192 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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178 Hits
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Aug
18

Develop a Trading Plan

The main message I want traders to understand is how important the disciplined execution of a well thought out trading plan is in today's markets. Nobody knows for sure what a given market will do next. Having a plan of attack will allow you to successfully cope with the uncertainty that is an inherent part of trading. I think it makes good common sense to have a well thought out plan of attack fo...
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Recent Comments
Novák
Andy, Excellent Rules wich derives from serious experience of Trading. Thnk´s.
Monday, 20 August 2018 03:56
Andy Jordan
thank you Novak. Glad to help!
Monday, 20 August 2018 04:09
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Aug
16

Is there room for hope in trading?

In trading, hopelessness is not brought about by the situation, but rather by your interpretation of the situation. How you explain the cause of a bad situation accounts for how you cope with it. If you think, "I've always been incompetent and this is just another one of those times that proves how incompetent I've always been," you will tend to view the situation as hopeless and just want to give...
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156 Hits
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Aug
12

Learn to Use Inaction in Trading

Inaction - not putting on a trade - is one of the greatest, most powerful tools you possess. Many large funds have to always be invested with at least some percentage of their capital. Moving into or out of a trade, without their own actions moving the market, is much more difficult for them. They are usually not able to quickly jump in and out of a market. This is an important advantage a smaller...
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178 Hits
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Jun
21

Staying on the “Sideline”

Don't get irritated or angered because you haven't put on a new trade in a long time. Whenever there is nothing to trade, don't trade. Accept it and stay on the "sideline." There will be an attempt by the "trading gods" to wear you down by giving you bad markets over and over, and for extended periods of time. This will happen, and it will happen on numerous, often successive occasions. Know this ...
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255 Hits
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Jun
15

What's my real reason for trading?

​ "The Rorschach test (also known as the Rorschach inkblot test, the Rorschach technique, or simply the inkblot test) is a test in which a subject's perceptions of inkblots are recorded and then analyzed using psychological interpretation, complex scientifically derived algorithms, or both. Some psychologists use this test to examine a person's personality characteristics and emotional functioning...
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258 Hits
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Jun
06

Traders "Pro Active" and "Ray Active" – A Story!

Pro Active and Ray Active are both wannabe traders, but their approach to trading is quite different. Ray is consumed with trading for profits. He imagines himself achieving great wealth, and thinks that when he amasses the riches he is after, he'll finally get the respect and recognition he always wanted from his wife, family and friends. He thinks, "If I can only make it as a trader, I can show ...
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222 Hits
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May
24

The "Crush Spread"

​ The spread is defined as buying one futures contract, and selling a different, but related futures contract. Specifically, when trading the crush spread, you would buy soybeans and sell its respective products, the soybean meal and soybean oil. This is what is referred to as being crushed. If you buy the soybean meal or the soybean oil and sells soybeans, that is what is referred to as being rev...
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275 Hits
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May
04

Don't Give In To The Death Wish

The death wish is resignation, fatalism, dejection, despair — in the face of "luck" repeatedly turning against us. The death wish is admitting defeat and shrugging our shoulders and throwing up our hands (generally after a string of losses) and not caring from then on whether we win or lose. The death wish is throwing money into the pot fatalistically, to punish ourselves. It is saying, "I might a...
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293 Hits
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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.