Category: Trading Psychology
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The 7 Words You Must Tell Yourself Every Morning
I was once a gambler, but now a trader. I once blew up a 200k account within a matter of weeks. Up until that point, I thought I was a trader. I opened up a trading account during the last stages of the roaring 90s internet boom. For a while…
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Smart traders profit from the wisdom and delusions of the crowd
Crowds can be wise, but also manic and delusional. An astute trader learns to differentiate between these two extremes. When there is diversity of opinion, the crowd is a force. The parts think independently, but private judgements combine to join as one powerfully wise collective. Unfortunately this intellectual juggernaught will…
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Prepare for the worst and the worst Martin Shkeli joke you ever heard
Martin: I have a horrible migraine. Prison guard: A bottle of Advil is $750,000 It’s easy to lose sight of the dangers of trading when things are going well. A few good trades and you are invincible. But it only takes one bad trade to wipe all the profit away.…
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Trading Meditation: Taking Small Losses Is Not So Bad
It hurt bad, yet it wasn’t so bad. Once when I was 9 years old my dad hit me with 10 straight pitches in a row. This was after I kept jumping out of the batters box while Pablo fired off 3 strikes right down the middle of the plate.…
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Trading Meditation: Be The Wolf, Not A Sheep
If every trader is doing the same thing, how does anybody make money? Trading is a zero sum game. Somebody wins, somebody loses. And the split is not 50/50. It is more like 10/90. For those who are making significant percentage gains, it’s more like 5/95. To the few victors…
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51 Essential Swing Trading Posts From 2015
This has been an incredible year for both me and this blog. Personally, I hit a major level in my trading accounts, moved my family to San Diego, mentored 14 new students, continued to run the part-time swing trading program over at my former student’s industry leading website and started…
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100 Trading Quotes To Put Into Action And Change Your Life: Paul Tudor Jones on Limiting Pain
Limit pain for smarter swing trades The trading game is a painful experience for most traders. Base emotions like fear, greed and panic are amplified the second we put on a trade. Please retweet if you liked this article! Tweet This is a major problem because trading is a decision makers…
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Swing Trading Smart Tips: Set It and Forget It
Tick. Tick. Tick. That stock is driving you bat shit crazy! Your co-workers gawk as you sweat and continually look up at your screen. You can’t hide the fact that you are stressed-the-you-know-what-out. Why are you stressed? It’s because that stock you entered moved 20 cents below your entry and…
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Elite Traders Are Not Afraid to Fail
I received an e-mail from a reader who has been gun shy since starting the year off with a couple of bad trades. Here is a post going back to September 2006 that hits this issue head on: I just had an IM chat with a trading buddy. After listening…
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Catching a Breakout Early: CF Trade
On Tuesday I bought 300 shares of CF at $92.05. Today the stock broke out over resistance at around $100 and closed at $107.76. I sold half my position near the close at $107.34 for a $2293 gain (+16.6%). I am holding 150 shares and will buy more on a…
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Applying the Strategic Elements of Sports to Trading
Trading psychologist Brett Steenbarger wrote an excellent post relating sports psychology to trading. I highly recommend it to anybody in the trading game. This paragraph struck a cord with me: “The finding that experts in a particular sport are better than novices, not merely at physical skills but also on…
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Today’s Trade: JSDA and VDSI
I sold 500 shares of VDSI at $20.65 (entry at $17.63) for a $1510 gain (+17.2%). Check out my reasoning for entry here. It was the perfect accumulation and pullback to support play. I was stopped out of my 400 share position in JSDA at $24.85 (entry at $26.41) for…
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Patience, Trading and Profitability
I stumbled across this article on patience and trading via Trader Mike’s links. Although it may seem like basic stuff, it speaks about an issue that has been one of the toughest for me to master. The basic message is you must be patient with your entry points and give…
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Weekend Links
Trading Links: Low risk buy opportunity in SPX. Ed Seykota on trends. Linda Raschke’s random thoughts. This week’s best of Jim Cramer. I like using moving average crossovers when trading on longer time frames. Test your trading ideas. I like buying pullbacks, especially into multiple support areas. Trading is a…
Paul J Singh 