Quick Wisdom for Traders
Sometimes we need reminding how to stay on track with our trading. Here are some points I’ve learnt over the years. Never over trade. Best not trade at all than over trade. Understand your personality then build your strategy around it to find your personal edge. Don’t give up – you’ll get there with discipline […]
Ground Rules For Staying Grounded
With 2019 drawing to a close it’s an opportune time to remind you of important ground rules for staying grounded to ensure you are a profitable trader. In the heat of the moment sometimes we can deviate from these rules, especially discretionary traders. However, even a slight bending of our rules will catch up with […]
Profit Maximisation Models – Part One
We often read about some traders winning a trading contest with a huge return in a very short period. In 99% of occurrences these traders used some form of profit maximisation strategy and, combined with a bit of luck, just happen to come out on top and we get to read about. Of course for […]
Why are there not more profitable traders in the world? There’s a simple answer to this question; Humans beings are not made to trade. It can be even more difficult for highly intelligent people, mainly because highly intelligent people tend to over analyse things looking for answers and logic. Yet markets are rarely logical. Humans […]
Buy the Open or Buy the Close?
All the strategies outlined in my trading books enter and exit positions at the open. This has prompted a reader question, specifically: Hey Nick. The accepted saying in many trading books and articles is that amateurs open the market, but the professionals close it. I have seen many times a stock open high in the […]
FOMO: do you fear missing a trade opportunity?
Overcoming FOMO FOMO. The Fear of Missing Out. In trading, it is the fear of missing out when you see a stock or market start to rally and you get a strong desire to join in. It’s an impulse trade and is a common pitfall, especially for newer traders. A pervasive underlying anxiety that others […]
Mastering the Markets
K. Anders Ericsson is a Swedish Psychologist. He is an expert researcher in the psychological nature of human performance. Ericsson created the phrase ‘deliberate practice’. He found that the difference between high performers and average performers was whether deliberate effort was being put in over the longer term to improve performance. Ericsson narrowed deliberate practice […]
Are you Playing the Blame Game?
It’s easy to look for someone or something to blame when a trade goes against you. Let’s face it. We’ve all done it at some stage throughout our trading journey. It was my Broker’s fault for recommending the stock to me. The CEO lied. Moondoggy on Hotcopper said it was a guaranteed winner. Trumps tweet […]
Methodology vs. Psychology (Part 2)
In Part 1 of our series last week, we emphasised the importance of Psychology over Methodology. Instilling in yourself a degree of acceptance when it comes to market behaviour. Acceptance leads to harmony and peace of mind. A human state that if achieved, will go a long way towards your journey of becoming a successful […]
Methodology vs Psychology (Part 1)
Welcome to Part 1 of our two part series on Methodology vs Psychology. I love this quote from Mark Douglas: “We don’t see the markets as they are, but rather our interpretation of them.” It’s a scary thought. If we are all basing our interpretation of the markets on a subjective viewpoint, then every trader is coming […]