Every now and then, I get emails from new traders asking, “Please show me a winning system”.
This is a sincere request, but at the same time it’s also completely misguided.
You see, beginner traders often believe that if they get access […]
Trading is a lot like life.
It’s about making decisions in the face of an uncertain future, with few rules and where you’re in full control of your actions.
Just like life, trading is what you make of it.
It can be spontaneous […]
Among the traders that I’ve communicated with over the years, the ones that struggle the most tend to be intermediate-level traders.
You see, although they are well-acquainted with the trading basics, their account typically hovers between a small loss and break […]
Trading is so lucrative precisely because most people lose money at it.
After all, the more money the losers lose, the more money the winners make.
But hang on… why do the losing traders lose so much in the first place?
Think about […]
Imagine you are thrown into a jungle and have to survive for 30 days.
You have a guide book that describes the native plants, telling you which ones are poisonous, and which ones are edible or have medicinal properties.
After a few […]
If I had to use a metaphor, I’d say that trading is a lot like predicting the actions of shoppers in a mall.
At the individual level, I can’t accurately predict if a particular shopper is going into walk into Levi’s […]
A few weeks ago I was speaking with a new acquaintance who, upon finding out that I’m a Forex trader, started bragging about a friend who turned $20,000 into $2,000,000 by selling the Yen in 2014.
Almost immediately, my bullsh*t meter […]
Victor Niederhoffer was a wildly successful hedge fund manager who was invited to partner up with George Soros in 1982.
Later, he decided to stop working with George Soros because he wanted to move on and do his own thing.
Soros was […]
In the early 1950s, psychologist Soloman Asch carried out an experiment that would later go on to become a classic study of human behavior.
Imagine you are 1 of 6 people sitting in a classroom, in preparation for an observation test.
An […]
Allow me to share a short story…
Two Chinese War Generals are preparing their armies for an impending battle. It is the 14th century.
General Ma spends his time training his soldiers to use various weapons – swords, spears, bows and arrows. […]