Category Archives for "Trading Pyschology"

trading tips

5 Trading Tips You Can Implement on Monday

Sorry, these are not trading tips for stocks to buy.

These are trading tips for the process you use to buy stocks, options, ETFs, whatever.

  1. Have a methodology (trade setup) that you use for finding opportunities.
  2. Know exactly how much money you plan to risk on the trade.
  3. Set a stop for how you will exit the trade if it doesn’t work out.
  4. Set a point at which you will lock in some profits.
  5. All of this feeds a plan that you follow for the trade BUT most importantly…

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one of the hardest things to learn

One of the Hardest Things to Learn

Whether you are a trader or an investor, it doesn’t matter.

One of the hardest things to learn is to take a loss. Losses are part of the trading/investing business.

It’s nothing to be ashamed of.  You have to work your plan. (you do have a plan don’t you?) Sometimes it doesn’t work out. Sometimes it doesn’t work out several times in a row. Continue reading

hoping for a miracle

Still Hoping for a Miracle

In the stock market or futures market or any trading/investing environment, if you find yourself hoping for a miracle then you know you are in trouble. Remember,

 

“hope is not a strategy”

 

Where the Money Goes

Rule 6, from the “Tao of Poker” by Larry W. Phillips, It’s important that a player starts seeing “staying too long on marginal hands” as where the money goes. Continue reading

If You think you're beat...get out

If You Think You’re Beat…Get Out

Poker or gambling in general has very interesting correlations to trading. In both you are dealing with uncertainty, the ability to handle your emotions and how well you manage your money.  

And doing all of those things gets back to discipline and your ego. Let’s start off with knowing when to fold ’em as they say in poker or as they say in trading…cutting your losses.  Some good basic rules of poker apply to trading.

Know When to Fold ’em

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trading tips

Is the Chart’s Story Clear or Confusing?

This post is a repeat of one I published over two years ago.  The title of that July 2014 post was “When you look at the chart, what do you see?” Some of the details might not be current but the idea sure is.  So what is the chart’s story?


It’s interesting to read the financial press. They always give a reason for the market’s action.  I can almost picture them sitting around and trying to figure out what they are going to say for any given day.  So the Dow was up 28.7 pts yesterday, what did they say?

Reuters: “Stocks managed to score modest gains on Friday, but the S&P 500 posted its biggest weekly drop since April as investors showed only mild enthusiasm after getting their first glimpses of earnings.”

Bloomberg: “U.S. Stocks advance as Internet rally offsets Portugal”

MarketWatch: “The U.S. stock market closed higher on Friday after the main benchmarks picked up steam in late afternoon, trimming weekly losses.” Continue reading

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