Whenever I start thinking in certain patterns, my trading performance plummets.
This has been such a regular occurrence that I have an acronym for it: DIED.
It stands for Desperate, Impatient, Egocentric, Daring.
When I’m desperate, I think:
Here’s a myth you see almost everywhere online: Successful trading is simple.
The truth is, it’s not. That’s just a marketing angle.
If trading was simple, anyone can just pick up a book, follow what it says, and become a winning trader.
But […]
Throughout our lives, we’re constantly told to be “true to yourself”.
This is the kind of advice everyone likes to hear, because it makes us feel good. No one likes to be told to be less of ourselves.
Unfortunately, this is also […]
In trading, success is never due to one thing, but failure often is.
Have too large a stop loss? You end up losing more capital than you gain.
Have too small a stop loss? You end up with too many losing trades.
Have […]
I often receive questions along these lines:
“What’s the best way to predict a price reversal?”
“What’s the best combination of indicators?”
“What’s the best trade entry/exit signal?”
Almost everyone who comes into trading asks such questions at one time or another.
Pretend-traders like to talk about all kinds of trading theories. In their heads, they develop elaborate strategies about how the market should be traded.
What they don’t realize, is that what they think is often different from what happens in reality.
Despite […]
There are, generally speaking, 5 distinct stages of progression among Forex traders.
Each stage centers around a certain set of beliefs, and as the trader grows, he sheds them and gains new ones that propel him forward.
Here are the 5 stages, […]
There’s a fundamental misconception in the finance industry that has led many smart people to make some very bad decisions.
In college, finance majors are taught to calculate the risk of a financial asset based on its price variance, which is essentially “how much its […]
In every complex environment there are written rules and there are unwritten rules.
Written rules are the ones everyone knows about. They are the platitudes commonly found in textbooks and on posters adorning the walls of corporate […]
“The Forex market is the most liquid in the world…” the Guru continued, “so technical analysis is especially applicable.”
My eyes lit up. That was exactly what I wanted to hear. “Yes!” I thought to myself. Forex trading is going to be […]