Money Management
Money Management There are some common mistakes I’ve seen traders make in the area of money management. First, let’s understand what money management is all about. Money management overlaps with risk, trade, business, and personal management, yet it has many aspects that make it unique, distinctly different from all of the other areas of management. In this chapter we want to examine some areas of money management that seem to involve mental quirks leading to costly mistakes. LISTENING TO
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How do I get myself to be in control in trading?
How do I get myself to be in control in trading? “Hey Joe! I know you must have been a truly committed trader when you began. How do I get myself to be in control?” Statistics and society may predict, but you alone determine whether you will succeed or fail. You alone are in control; take responsibility for your performance and your life. There are always tremendous opportunities in the markets. It is not what happens; it is what you do with what happens that makes the difference between
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One way to acquire discipline in trading
One way to acquire discipline in trading “Hey Joe! When you were teaching us at our Forex office in Florida, you stressed discipline. Our head trader stresses discipline. What I want to know is if discipline can be acquired or is it just something you are born with? I’m having trouble finding it in myself.” - trader - Personally, I believe discipline can be learned, although at times it is very painful. When I began trading, I was a very undisciplined person. But trading and the markets forced
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Don’t deny reality
Don’t Deny Reality If you want to be a successful trader, you must make sure you do not deny reality in any phase of your trading. You cannot deny losses, price direction, mistakes you make, being undercapitalized, or a whole host of things you would rather not think about. Many traders think the best way to deal with unpleasant ideas, events, or personal character flaws is to shut their eyes and pretend they don’t exist. Let’s face it, trading can be difficult, at times very difficult and
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Adaptation to the realities of the market
Adaptation to the realties of the market Do you think adaptation to the realities of the market is the most important thing? Many times in the past I’ve written about the need to adapt, the need to be able to change your behavior relative to the market because the markets are ever changing. I’ve stated that mechanical systems may be workable, but for only a short time relative to the life of markets. You must learn to trade what you see and to understand what you see on a chart. When I first
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Main Drawbacks of a Forex Trader
Forex Trade: Main Drawbacks of a Forex Trader Why is it that very few traders succeed in the Forex trading environment while the grand majority of traders fail to achieve success? Although there is no hard answer to this question, there are a few things that will put you one step ahead and will definitely put the odds in your favor. The main purpose of this article is to guide you through some important aspects of Forex trading. But in a different way, instead of telling you what to do or the
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Making Decisions
First, please allow me to congratulate you for taking the time to read this publication. I intend to discuss the general elements of trend following and some simple business accounting to help you understand why trend following is the correct thing to do. Every day we are faced with decisions. When we wake up in the morning, we decide what we are going to do first, then next, etc. The decisions we make have to be governed by some level of thinking. The basic idea is that what we believe drives
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