The Pareto Principle

The Pareto Principle, more commonly known as the 80/20 rule, states that for many outcomes, roughly 80% of consequences come from 20% of causes. In trading specifically, we can rephrase this to say that 80% of the profits will come from 20% of the trades. The inverse of that may also be true, with 80% […]

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The Gambler’s Fallacy

If you flip a coin and land five heads in a row, what is the probability the next toss will be heads? You throw a die five times and roll a six each time, what is the probability the next roll will land a six? A leading market index has made significant gains ten weeks […]

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6 Steps to Build Confidence and Success

We all start somewhere – from learning the ropes to taking action. But here’s the kicker: there’s a jungle of options out there, and a bunch of armchair experts waiting to pounce on eager, unsuspecting new traders. Flashback to 1985, when I started – nada no books, no websites, no self-proclaimed gurus. I was drawing […]

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Choose public school for your kids

Public School Success Stories

Public school success stories are not something we usually talk about. Not for any reason other than, it never occurred to us that we needed to until recently. Confession – we’re not who you think we are. Or should I say, we’re not what you think we are? Nick and Trish Radge are public school […]

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Pop-Psychology

Pop-Psychology and Trading

You may not know that one of our resident technical gurus, Scott Goddard, also has a Diploma in Applied Psychology. On his Twitter feed this morning, Scott wrote,. “Psychology / Mindset whatever you want to call it, can be taught, and is an essential component towards becoming a successful trader. Yet you need to be […]

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clear mental pathways

Keeping Your Mental Pathways Clear

Keeping Your Mental Pathways Clear I love this quote by Mark Twain: ‘I have had many troubles in my life, most of which have never happened ‘ As Traders, and in life in general, it is easy to clog our brains with concerns and worries. We’ve all met people who are constantly worried about things […]

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Trading Short with Meme Stocks

We’ve discussed Meme stocks previously. This week, NEGG decided to join the party. On June 30 the stock jumped 78%. A few days later it jumped 41% at which point it became a stock of interest for short selling. The following day it rocketed 148%. Here’s the chart… That’s a 560% gain in a 6-days. Great […]

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comfortable being uncomfortable

Get Comfortable Being Uncomfortable

Can you be comfortable with the thought of being uncomfortable? I’ve been trading since 1985 and yes, I lost everything in 1987 – young, arrogant and leveraged to the hilt. It was inevitable. So it’s always been my fear that a repeat of 1987 could occur again. But that didn’t stop me trading. Yet the […]

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trading mastermind psychology

Trading Mastermind

Trading Mastermind Your special topic for today is Trading Psychology. Your time starts now. Question: How can you overcome your most debilitating psychological trading barriers? My Answer: Go out and get another job. We’ve discussed this before. And I don’t mean stop trading. I just mean add some other revenue streams into your bread winning basket. If […]

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long term trader

Thinking Like a Long Term Trader

Thinking Like a Long Term Trader Managing money was an enlightening experience to say the least. In my brief 4-year foray of doing it for a living I came up against some of the typical emotional responses that people generate when placing their own money on the line in the market place. This article discusses […]

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