Trading Psychology Archives

Trading Plan

2018 Global Markets are on track for an interesting year. At the end of each year we can look back and identify aspects of our trading that we could have done better. No one is perfect, and no one knows everything. Yet the longer you remain active and motivated in this business, the more likely […]

The Psychology in Trading

,It took a long time for me to understand the importance of psychology in trading. About 15 years ago I came across a book, ‘The Disciplined Trader‘ by Mark Douglas. It was a revelation. I had a good grasp of trading fundamentals. Plus a strong and workable rules-based trading strategy centered on technical analysis. Yet, […]

Letting Go of the Need to Know

Do you always need to know what’s going on? What a volatile couple of weeks it’s been on Global Markets. Nothing like a couple of 1000+ point single session drops on the Dow Jones Industrial Average (DJIA), combined with the VIX Volatility Index locking in a 100% up day last week, to get the heart […]

Trading under Chaotic Conditions

The human brain can only take so much noise and distraction before it becomes confused and erratic. If you are consistently trading under chaotic conditions, whether you are discretionary, rule-based or systematic in your approach, there will be times when the little voice on your shoulder will tell you to override your system. It may […]

Novice Trader vs Experienced Trader

We’ve all been there. Each of us started our trading careers as novice. High on expectations and optimism. Low on experience. A raw untested method. A personal psychology likely to get in the way of our success. What we will bring to the table when starting out is relevant. Every traders weakest link? Themselves. So […]

Is This Popular Indicator Signaling A Market Correction?

The 200-day moving average is quite possibly the most watched technical indicator on Wall Street. In its simplest form the 200-day moving average registers a bullish or bearish trend. Some even use it as a stand alone trading signal. Today we’ll take a look at the 200-day moving average from a slightly different angle. If […]

Buffett’s Message to the Crypto Kids…

Are you curious to know Buffett’s message to the crypto kids? Several mainstream brands, such as Eastman Kodak and Long Island Ice Tea, have made the leap into crypto, and in doing so have provided their shareholders with some windfall profits. Eastman Kodak jumped from $2.94 to nearly $14 in two trading sessions on the […]

‘Tis The Season

It’s about this time of the year we hear about the Santa Rally. It comes on the end of the other seasonal anomaly of ‘sell in May and go away’. Seasonality is a repetitive price movement that occurs at specific points of time. It stems from business cycles, such as high peak and low peak […]

Reminiscences of a Market Crash

30-years ago today (20th October 2017) the ASX followed the global markets into the abyss falling 25% on the open. It would go on to lose another 25% in the following weeks before grinding out a base and starting the hard road higher again. Apart from losing twice my annual salary (from which my father […]

What is your biggest fear?

What is your biggest fear? When people first approach us it’s often in a state of fear. Like John R from South Australia who said “When I was 45 I realized that I wouldn’t have enough funds for retirement.” Or Joanne S, Brisbane: “When we got out of the Armed Services we had nothing.” Their […]