facebook  youtube  blogger

Trading Educators Blog

#1 Trading Blog Site
Dec
05

Getting Help

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 ...
Continue reading
  315 Hits
0 Comments
315 Hits
  0 Comments
Nov
27

Is learning the trading business like learning any other business?

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 automat...
Continue reading
  273 Hits
0 Comments
273 Hits
  0 Comments
Nov
27

Hindsight

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...
Continue reading
  383 Hits
0 Comments
383 Hits
  0 Comments
Nov
21

Ed Seykota Golden Trading Rules

Ed Seykota Golden Trading Rules
  Here is what I found on Wikipedia about Ed Seykota: Edward Arthur Seykota (born August 7, 1946) is a commodities trader, who earned S.B. degrees in Electrical Engineering from MIT and Management from the MIT Sloan School of Management, both in 1969. In 1970, he pioneered Systems trading by using early punched card computers to test ideas on trading the markets. Seykota resided in Incline Vi...
Continue reading
  377 Hits
0 Comments
377 Hits
  0 Comments
Nov
21

Protection

Protection
​ It was a muggy day and I couldn't seem to do anything right. I fumbled around all morning. He hadn't slept the previous night. I was tired, and was tempted to just quit for the day, drink some ice-tea, and sit in a hammock by the pool. But I still had enough willpower to fight temptation a little longer. I had been working on a trading plan for the past month and I wanted to see it through. The ...
Continue reading
  390 Hits
0 Comments
390 Hits
  0 Comments
Nov
14

The Golden Rules of Martin S. Schwartz

The Golden Rules of Martin S. Schwartz
I like Marty Schwartz and his trading book "Pit Bull" a lot. It is an honest book about a trader who had his ups and downs in the market as we all do. In his book he writes, he made his highest progress, when he stopped trying "to be right" with the trades and instead followed the approach of "making money". Here is what I found on Wikipedia about him: Martin S. Schwartz (Buzzy, born March 23, 194...
Continue reading
  790 Hits
0 Comments
790 Hits
  0 Comments
Nov
14

Be Objective

Be Objective
When your money is on the line, you can't help but feel a little uneasy. What if you lose? It's hard not to put some of your ego on the line with your money, and when you lose, feel hurt. Winning traders, though, keep cool. They don't ride a roller coaster ride of emotions, feeling euphoric after a win and beaten after a loss. They take losses in stride. However, it's hard to stay objective and co...
Continue reading
  345 Hits
0 Comments
345 Hits
  0 Comments
Nov
07

Golden Rules by Paul Tudor Jones

Golden Rules by Paul Tudor Jones
​ During the next few weeks, I want to have a look into the "golden rules" of famous traders with the idea, to find something they all have in common. I am starting with Paul Tudor Jones. Here, what I found in Wikipedia about him: Paul Tudor Jones II (born September 28, 1954) is an American investor, hedge fund manager, and philanthropist. In 1980, he founded his hedge fund, Tudor Investment Corpo...
Continue reading
  498 Hits
0 Comments
498 Hits
  0 Comments
Nov
07

False Consensus Part 2

False Consensus Part 2
​ Jim own a Hog farm. He produces 1,000 hogs per month to take to market, so he runs a fair-sized hog operation.Jim grows corn and soybeans for feed. He grinds his own beans into meal, and has silos for storage of both the corn and the beans. In years where the crop of the best quality, Jim stores as much of his crop as possible. If the crop is of lesser quality, he sells his crop in the open mark...
Continue reading
  430 Hits
0 Comments
430 Hits
  0 Comments
Nov
01

Self Control

Self Control
To become a truly successful trader you must become a truly committed trader. How do you get yourself to be in control? Statistics and society may predict, but you alone determine whether you will succeed or fail. You alone are in control. You alone must take responsibility for your performance and your life. There are always tremendous opportunities in the markets. It is not what happens; it is w...
Continue reading
  423 Hits
0 Comments
423 Hits
  0 Comments
Nov
01

False Consensus Part 1

False Consensus Part 1
​ Traders and investors try to understand their world. They make hypotheses and test them. Rather than conducting formal experiments, however, they use their everyday experience to test out theories they have about the markets. We study the markets and try to develop our own personal theories about how the markets work. Because we don't conduct formal experiments, we may fall prey to psychological...
Continue reading
  331 Hits
0 Comments
331 Hits
  0 Comments
Oct
23

Ready for Action

Ready for Action
​ In 1981, when I first started day trading, I would get to bed early night, wake up early, and be excited about starting the trading day. I remember on time when it was a cool, sunny day, and I really felt rejuvenated. After a quick exercise session, I couldn't wait for the markets to open, so I could make a few winning trades. I was really hyped. "Today is my lucky day. Today I'm going to make a...
Continue reading
  417 Hits
0 Comments
417 Hits
  0 Comments
Oct
23

Repetitive Mistakes

Repetitive Mistakes
​ Anyone is allowed to make one mistake. When the same mistake is repeated a second time, caution should be noted. The third repetition of the same mistake constitutes self-destructive habitual behavior that must be reversed. All trading must stop immediately until the trader's self-discipline is thoroughly examined. Once the reason for the repetitive mistakes is understood, usually fear, anger or...
Continue reading
  349 Hits
0 Comments
349 Hits
  0 Comments
Oct
17

Making a Comeback

Making a Comeback
​ Have you ever had a bad day when nothing seemed to go right? First, you got up late. Second, your computer wouldn't boot up, and third, when it did, you couldn't seem to get in and out at the right time when executing even the most basic trade. What really upset you was when your Data line went down for 10 minutes during a critical moment in your trading plan. Traders face setback after setback,...
Continue reading
  381 Hits
0 Comments
381 Hits
  0 Comments
Oct
10

Intuition

Intuition
​ If only humans were more like machines. In theory, the ultimate trader would act like a robot, analyzing market data with unfailing accuracy, devising a trading plan, and executing it without flaw. But does trading work that way? Trading is more art than science. Without an intuitive grasp of the markets, it's difficult to successfully trade the markets using short-term trading strategies. Human...
Continue reading
  378 Hits
0 Comments
378 Hits
  0 Comments
Oct
04

Your Own Worst Enemy

Your Own Worst Enemy
​ Do you ever wonder if you secretly want to fail? It's hard to believe, but some people do want to fail. They may not want to do better than their parents, and secretly, they set themselves up for failure. Others fear success. They associate success with added responsibility, and they want to avoid responsibility at all costs. But if you're like most people, you want to succeed. For whatever reas...
Continue reading
  362 Hits
0 Comments
362 Hits
  0 Comments
Oct
03

Spreading Against a Related Contract

Spreading Against a Related Contract
​ In this instance, you spread by taking an opposite position in a related contract. You might spread corn against wheat. You might spread heating oil against unleaded gasoline. Quite often, operators who trade large size and are market makers hedge the S&P 500 by taking an opposite position in the Nasdaq or the Dow. Soybean traders often hedge by spreading off against the meal, the oil, or bo...
Continue reading
  340 Hits
0 Comments
340 Hits
  0 Comments
Sep
26

Be Aware

Be Aware
​ Beginning traders may make trade after trade and watch their account balance dwindle with each trade. They may feel unintelligent and thoughtless and think, "Why am I making so many losing trades?" At times they may wonder if they are thoroughly incompetent. But it's all a matter of perspective. If you aren't trading profitably, it isn't because you can't. It isn't because you have bad luck. It ...
Continue reading
  490 Hits
0 Comments
490 Hits
  0 Comments
Sep
26

Accurate Records

Accurate Records
As a trader, it's very important that you keep accurate records of all factors that may impact the outcome of your trades so that you can learn from your losses, improve your performance, and do better next time. From a psychological viewpoint, by documenting actions, thoughts and emotions associated with both wins and losses, you will come to see what works and what doesn't. When it comes to loss...
Continue reading
  320 Hits
0 Comments
320 Hits
  0 Comments
Sep
19

Your Role in the Market

Your Role in the Market
​ Our past experience is a factor coloring the way we see things. We get an electric shock, and we decide never again to put a hairpin into an electrical outlet. Or, when we kiss our mate and receive a kiss back, we learn that kissing that person produces pleasure, so we enjoy doing it again! Likewise, our experience with the markets, colors our perception, and can influence the way we approach th...
Continue reading
  365 Hits
0 Comments
365 Hits
  0 Comments

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.