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Trading Educators Blog

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Jan
16

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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617 Hits
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Jan
09

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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612 Hits
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Jan
09

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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874 Hits
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Jan
02

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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591 Hits
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Dec
12

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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579 Hits
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Dec
12

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

​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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Nov
27

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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550 Hits
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Nov
27

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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786 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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Oct
05

Chess and Trading. What do you think?

​Although I haven't the faintest idea of how to play chess, it certainly seems like a great idea. I imagine you can improve stock and futures trading by learning how to play chess. It might also help to develop an interest in physics. Every trader should learn to develop his problem-solving and pattern recognition abilities. I've been told that nothing does this better than learning how to play ch...
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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.