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Be Humble

​ Seasoned traders observed long ago that after a series of wins, a trader is vulnerable to over-confidence and trading errors. It's quite understandable. Trading is a competitive business, and when you win, someone else loses. Market participants trade because they are greedy for profits, but often sell out of a fear of losing. How do many traders deal with the inevitable feelings of uncertainty ...
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Why Stops

​ Would you ever think of jumping out of an airplane without a parachute? Of course not, but that's what some people do when they trade the markets. They are very willing to put their money on the line, but they don't have much to protect them from a major disaster. Placing a stop, for example, can prevent you from allowing a small loss to turn into a big one, but many traders avoid placing stops....
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Handling Success

In his book, "Trading to Win," Dr. Ari Kiev notes, "winning days are often followed by plateaus and losing streaks." Behavioral economist Dr. Terrance Odean observed that novice online investors who had a series of winning trades tended to have periods of overtrading. It's as if they believed they could take more risks, and potentially lose profits, since they had just made more than they expected...
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Trading education

Trading education
It seems as though everyone believes in trading education except those who really need it. For years, knowledgeable brokers have advocated it.  Trading coaches recommend it. And great traders are also believers. Why then do wannabe and aspiring traders not believe in trading education? Why are beginners so reluctant to shell out a few bucks to get the education they need in order to be succes...
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Keeping Your Focus Right

Some time ago I spent 4 days in a Forex trading office, teaching and working with the traders there. It was interesting to see how these traders speak with one another, and to listen to what they say. I couldn’t help making some observations which I will now share with you. If you are a part- or full-time trader, you may have enjoyed the attention this wild and wooly occupation brings at social ga...
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Emotions in Context

When you put your money on the line, it's hard to avoid getting a little emotional. Beginning traders may be especially prone to experience a roller-coaster ride of emotions, feeling euphoric after a winning streak, yet disappointed after a string of losses. How well do you handle emotions? Winning traders control their emotions. They don't let their emotions control them. But emotions don't happe...
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Searching for a Winning Strategy

Winning traders must identify profitable trading strategies. It's a creative process. Much like scientists find evidence to support a theory, traders must formulate hypotheses and determine whether their proposed strategy can produce a profit. You must sift through a wealth of information, mentally testing and retesting your hypothesis and trying to decide if it will work when the ideal market con...
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Recommended time frames

Today, I've received the following question: I assume the Ross Hook (RH) and Traders Trick Entry (TTE) are applicable in whatever time frame the trader uses. However, there are some time frames that are simply too erratic or wild to trade. And pertaining to stop running, there must be some that are favorites of those attempting to do so. So is there a recommended time interval from which to trade,...
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Don't Give Up

I received the following email: Hey Joe! I’m ready to give up. When I found out that statistically most traders are losers, I wonder what chance I have of ever making it. You have every chance of making it. You are not everyone else, you are you. Statistics and those who use them may predict, but you alone determine whether you will succeed or fail. You alone are in control; take responsibility fo...
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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.