How To Solve The Market Puzzle
Below you see 6 boxes on the left, and 6 boxes on the right:
The contents of the boxes to the left have something in common.
The contents of the boxes to the right also […]
The best trading teacher is not a person
Sometimes I make a good trading call, and get complimented on my trading “skill”.
It’s flattering of course, but the truth is that it isn’t so much about skill, as it is about experience.
If you get punched in the face every […]
Trading Complexity
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 […]
Get Over Yourself
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 […]
The Market Decides How To Win (Not You)
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 […]
5 Stages of Forex Mastery
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, […]
The difference between Risk and Uncertainty
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 […]
Forex Technical Analysis: You’re Doing It Wrong
“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 […]
Should you be an intuitive trader?
Intuition is a tricky subject, because there’s no way to prove or disprove that it exists.
Consider however, that there’s a strong psychological incentive for human beings to provide an explanation for coincidences: we want to feel in control.
A mother loses her […]
The Forex Consumer & The Forex Craftsman
A Consumer is someone who spends money to get a result, without necessarily understanding how the result is achieved.
For example, if I want a new bookshelf I might head over to Ikea and buy one. I’ll then take it home, […]