In many professions and especially in the world of sports we often talk about averages and percentages as a tool for measurement of success. Generally speaking, the higher the average or percentage, the better the result. In car sales people want a high “closing” percentage, in baseball, players strive for high batting averages, in golf…
This is an excerpt from the book Reminiscences of stock operator written by Edwin Lefèvre which is the thinly disguised biography of Jesse Lauriston Livermore.This excerpt fully summarizes the mistakes made by most traders, New market participants face this emotion everyday and each trader during his development phase goes through this at one point or…
It is often said that death and taxes are the only two things that are certain in life, but it is fair to say that failure should be added into the mix. There is not a single person in the world who has the ability or the foresight to go through life without ever taking…
Day trading is not for everyone. Day trading attracts people because it presents the potential for a considerable amount of profits. For those who choose to go into day trading, they are lured in not just by the promise of financial success but by the thrill as often described by experienced traders. Mastering day trading…
There was once a Chinese emperor who assembled a few of his most trusted ministers and issued this command: “Travel throughout the world, gather all the wisdom you can find, and assemble it in one place here in the royal city.” The ministers set off, north, south, east and west, accompanied by soldiers, servants, carriages…
If you’re new to the investing world, your experience is probably limited or non-existent. Perhaps you’ve decided to become a trader because you have a friend who is one who talks about how exciting the stock market is and of course, the gains. Or maybe, you saw stock market trading in a movie and it…
Traders feel equipped as they familiarize themselves the inner workings of stocks and market fundamentals. They may understand the benefits and limitations of technical analysis and can dissect patterns, trading volume and make sense of price movements but it is not enough to become a successful trader. Traders find themselves in high-intensity situations, darting in…
Read More “Trading Psychology: 5 Core Traits of Successful Traders” »
Despite our best efforts to avoid it, there is no denying that there is an emotional rollercoaster that traders ride thanks to the market cycles. Traders want to maximize gains and minimize losses. However, it is easier said than done especially when factors like emotions come to play. And because lifeless robots do not run…
Trading Excellenceis mundane. Superlative performance is really a confluence of dozens of small skills or activities, each one learned or stumbled upon, which have been carefully drilled into habit and then fitted together in a synthesized whole. There is nothing extraordinary or superhuman in any one of those single actions; only the fact that they are done consistently, correctly,…
As professional traders most of the hard work is done when the market is closed. We go over our trades, review them in detail and find the spots where we can improve,or where we might have gone wrong. Goal is to improve on your strengths and cut our mistakes. Over time as you eliminate your…
