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Trading Educators Blog

#1 Trading Blog Site
Apr
02

Don't wait too long for "Confirmation"!

​A popular concept in the world of trading, especially among technical traders and chartists is to wait for confirmation before entering a trade. This means you have a Signal, for example, a price action pattern and now you wait for the markets to confirm that pattern before you enter. The idea, of course, is to filter out bad trades this way and to gain confidence before entering the trade. ...

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  2215 Hits
Apr
02

Ego or No Ego

​When you get an easy winner do you feel guilty?  Do you ask yourself, "Do I deserve to win?"Do I? The world's most successful traders believe in themselves and their ability to win. In fact, many of them feel that they "own" the market. They are not necessarily being arrogant, but they are sure of themselves and sure that they are able to take profits out of the market. Most important i...

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  994 Hits
Mar
26

Your Worst Enemy

​In general, we are our own worst enemy when it comes to trading. 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. These are often self-image problems that can rise from as far back as early ...

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  941 Hits
Mar
26

Knowing When NOT to Trade

Traders want to trade. That's what we feel is our job and that's when we feel that we're actually really doing something. And I think that's why it can be so tough to go through periods of low trade frequency. It just somehow doesn't feel right. Might be missing out on something. For sure the markets keep on moving and others are trading, right? But feelings are often misleading, especially when i...

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  929 Hits
Mar
26

That GUT FEELING is no mere figure of speech!

​The gut actually has its own self-contained nervous system, known as the enteric nervous system. It can operate in the complete absence of input from the brain or even the spinal cord. It is vast, with more than one-hundred million nerve cells in the small intestine alone. Add to that the nerve cells of the esophagus, stomach, and large intestine…the result is that the gut contains more nerve cel...

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  1007 Hits
Mar
19

Rationalizing Actions when Trading

​One of the most important things to learn in this life is how we ourselves behave, not only when we are acting on our own, but when we are part of the crowd. And what few of us understand is how many of our important daily actions are not thought out in advance. We are all attempting to survive in what is basically a hostile environment. Many of our actions are in response to some sort of stimulu...

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  1066 Hits
Mar
19

Why I Commit to Teach and Train Others

​Science has been called the most creative art form.It expresses its creations in technology. Valuable information is the most prized commodity, because it makes the wealth creation process and individual creative process possible.For me, passing on valuable information and seeing someone use it to fulfill his hopes and dreams is my most rewarding endeavor. So far, the computer is technology's ult...

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  983 Hits
Mar
12

These are the Times when Millionaires will be Made (but many more will lose there shirt)

​I've read this phrase over and over again in scam emails, Twitter posts of different Gurus and other sources mainly because of marketing reasons using the current panic in the markets to sell their wisdom. But all I know from brokers I know is, that many of their clients are losing or already have lost tremendous amounts of money because they only think in terms of "how much money can b...

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  1079 Hits
Mar
12

Winning Traders

The winning trader must be cold, calculating, and logical. It is absolutely necessary to control your emotions, rather than let them interfere with your trading decisions. While it is true that fear and greed are major factors in market behavior, there are other emotions, such as anger and disappointment, that influence our trading decisions. Because emotions can interfere with discipline and soun...

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  1057 Hits
Mar
05

Accepting Smaller Losses

​Traders are willing to gamble a lot of money to avoid a potential loss, rather than immediately accepting a smaller but certain loss. Likewise, traders will hold on to a losing trade, and continue to watch it loses money, rather than face the loss. Why is it that we see money as being so important? The answer stems from our culture. What we esteem as good things are associated with money. Money i...

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  1181 Hits
Mar
05

Knowing too Much

​It sounds crazy, but you can know too much about anything you want to trade.  This is hard for people to accept in our "Knowledge Is Power" society… where the Internet puts thousands of pages of information, data, and news in front of us with a few clicks of a mouse. People like to believe that with enough information, they can make a perfect decision… That by adding fact after fact, data po...

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  1363 Hits
Feb
27

Focus on the Obvious

Humans have a tendency to forget the obvious. We often think that life is more complex than the issues right in front of us, and that obvious solutions offer little solace when trying to find solutions to seemingly insurmountable problems. The markets are complex at times, but the psychology of the market is not. And the psychology of winning isn't all that complicated either. It is vital to accen...

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  1235 Hits
Feb
20

Objective State of Mind

As you trade, have you ever heard a little voice inside talk about only what is going wrong? As the market moves against you, the voice whispers, "My money is on the line. What if I lose? What am I going to do? How will I meet my financial obligations this month? I need to win! The little voice moves you away from your ongoing, immediate experience to your emotions, what may go wrong in the next m...

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  1087 Hits
Feb
12

Paper Trading

Paper trading cannot replace real trading for many (mainly emotionally based) reasons, but it can be an important part of the process of finding and trading a new method. First you might have an idea about how to trade a market based on price bars, candlestick charts, indicators, or whatever you use for your trading. Next you would back test it with older data. You would do it manually or by using...

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  1520 Hits
Feb
12

More on Impulsive Trading

When your money is on the line, it's difficult to remain calm, rational, and in complete control. What happens if you lose? How will you recover? It's natural to become consumed with self-doubt and abandon your trading plan, or act irrationally in the midst of the chaotic market action. But winning traders control their impulses. They execute a trading strategy effortlessly and flawlessly, even un...

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  1106 Hits
Feb
06

Opinion Doesn’t Count

​In most other fields of activity we need to convince people around us that our opinion is correct. In the market, it just doesn't work that way. It's suicide to try to trade from your opinion. Instead of insisting that you are right, you have to get rid of your ego and any opinion you have of the market. What you want, is simply to be in tune with what's happening at the moment. Connect to the re...

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  1021 Hits
Feb
06

Clear Perspective

There are times when our judgment is cloudy. Perhaps we want to win so badly that we optimistically see trading opportunities that aren't there. At other times we may be so stressed out, busy, and tired that we can't concentrate, and end up making an impulsive decision or a trading error out of a sense of frustration. As much as we search for a rational, robot-like perspective on the markets, it i...

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  1011 Hits
Jan
31

Wiping out the Trading Account

​Most successful traders failed at some point in their careers and wiped out their account. Many traders lose because they do not understand the nature of the decision-making process, which should be based on rational price action analysis versus emotional, irrational reactions to price action. A reason should be required for each market action taken. When fear exits a trade, it is more difficult ...

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  1480 Hits
Jan
30

So, You Made a Mistake…

​John is kicking himself right now. He just made an unexpected losing trade and he feels especially down. He expected to make a killing, and he was looking forward to winning and celebrating big. He thought he had done everything to prepare for the trade. He had looked at the moving average to discern the trend. He looked at the highs and lows of the stock for the past two months, and set his stop...

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  1154 Hits
Jan
23

Question from Student

 First and foremost, thank you for sharing your valuable knowledge, its much appreciated. For scalping/daytrading CL, EC, GC, RTY, what would be the suggested time-frame to set up the charts as per the Trading with More Special Set-Ups Webinar--Stochastic 5,3,3 and BB 18,2, but what time-frame do you suggest, 3min/9min? The time frame and the setups are independent of each other—mutually excl...

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  1085 Hits

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.