Why did you enter the trade?

It's the first thing ask when I review a trader's trades. Why did you enter the trade? It's a simple question that only takes one sentence. Something like, "the market is in an uptrend and the stock made a breakout-pullback setup that offers 3:1 risk-reward." This is not the type of answer most people give... Continue Reading →

Trading and the Psychology of Hesitation

Trading is mental warfare. It's not necessary a mental game with an adversary. Rather, it's war with one's self. If you have any doubt about this, speak with any trader about their trades for 15 minutes. You'll immediately sense the agony they feel over some of their trades. In this way, trading has a lot... Continue Reading →

Take Politics Out of Your Trading

Whether you like it or not, politics puts you on a team.  You are likely to put the team first and therefore think with the team.  You become a part of your team's groupthink, which is a space no trader willingly enters. Even if your logical brain tells you what is true, your emotional brain... Continue Reading →

Seven Trading Sins

Here are seven trading sins that are hurting you: FOMO. You enter trades you shouldn't, because you fear being apart from the group. This usually doesn't end well because you enter at the worst time. Loss aversion. It's fear of taking losses, otherwise knows as loss aversion. This manifests itself in two ways. Either you... Continue Reading →

Do Not Trade With A Hammer

If you only know one thing, you will use that one thing instead of searching for the better alternatives. In psychobabble terms, this is known as the "law of the instrument," to which Maslow famously said, "if all you have is a hammer, everything looks like a nail." He's right. Thor uses his hammer for... Continue Reading →

Create a free website or blog at WordPress.com.

Up ↑