If you’ve been trading for a while, I’m sure you’ve heard the statistic that 90% of traders fail. Also, I’m pretty sure that all of us strive to be a part of the 10%. How can we do this?
Category: Tips / Psychology / General
trading related writing
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Stick with It
Sticking to your trading strategy is often the most difficult thing for traders to do. That’s because sticking to your strategy means: you don’t hop from one strategy to the next, you manage your trades (stop losses and profit targets) according to you rules, your risk management is according to your rules and you don’t let all the noise (social media) influence your trading decisions.
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Patience and Trading
Aspiring traders often think that trading means trading / clicking buttons all the time, but it’s actually the opposite… Doing less / being more patient, is often what is needed. Let’s discuss.
I can’t decide for you (the trader) on how tight or wide your stops must be, but I can explain how they (tight or wide stops) will affect your trading. And during the process of explaining their differences, I hope to guide towards better stop placement. This is discussed next.
Mastering the Market Cycle: Getting the Odds on Your Side, is book written by legendary investor and co – founder of Oaktree Capital Management, Howard Marks. As the book’s title implies, its emphasis is mostly on different market cycles and how to make them work for you. But the book also contains many other market wisdom, such as his opinion on uncertainty and risk in markets.
Hard work and persistence in trading, just like with any other worthwhile endeavor, is often required for success. In this post I draw from a quote of the late William J. O’Neil to elaborate.
New traders often start out trading with what is known in the trading community as trading with scared money. This might not the best way to start trading and its often one of the reasons traders never get far. Let’s delve in.
One of the first things you’ll here when it comes to successful trading is sticking to your stops. While this is great advice, there is another part to the equation for profitable trading: Sticking to your profit targets.
Newer traders love to take on big risk. The idea is that the bigger the risk they take, the more money they stand to make.
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Expectancy
In this post I will explain the concept of expectancy in trading, an important number to track if you’re serious about your trading.