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How You Can Be Sabotaging Your Trading - And Not Even Know It!
Whilst trading routinely involves decision making, there are no more important decisions you have to make than when to close positions. Quite a few traders often overlook this part of trading or underestimate how important that it is. It is selling that impacts directly on whether or not you make any money trading.More -
How Important are your Exits when Trading?
One of the things that separates successful traders from the majority of market participants is that they have a detailed plan that guides them when to close trades. For them, this is essential. It is fair to say that when a lot of traders buy shares they have little idea of under what conditions they would consider selling.More -
Focus on the Right Things and Watch What Happens!
Today, computers and trading software make it so easy to access information from almost anywhere. Never before have so many people had useful tools readily available to them at their fingertips.I believe this situation presents a problem for a lot of people, in that they try to overcomplicate matters that don’t need overcomplicating.More -
Get Out of the Trading Comfort Zone
Many people who have traded have heard how important your psychology, or mindset is to your trading success. Books have been written, entire seminars presented and numerous tea breaks at traders club meetings across the world are devoted to the subject of the ‘psychology of trading’. Many traders would argue, I included, that your mind is the largest part of your overall trading success.More -
Probability - If You Don't Understand It, It Will Cost You Money
Probability is very relevant to trading, and one of the main things I look for when entering trades for example, is to have a high probability of having a profitable trade. In other words, because all of my conditions have been met, I enter the trade with confidence knowing there is a fair chance of the trade resulting in a profit. As we know, there are never any certainties.More -
When Trading, Keep Your Mouth Shut
In numerous traders clubs and forums, you will often find people who routinely disclose what positions they have and why. Often, the intentions of these people are innocent in that they want to help others to discover an approach that is going to work for them. They want to teach the recipients and empower them to learn more about trading.More -
If You Want to be Profitable, You Must Develop the Right Mindset
In his book, ‘Trade Your Way to Financial Freedom’, the renowned American psychologist Dr Van Tharp discusses in several parts how important your psychology or mindset is to your trading success. He graphically depicts the significance of your psychology using a pie chart and explaining that there are three ‘Ingredients to Trading’. They are System, Money Management and Psychology.More -
Why Break the Trading Rules?
There are a few trading rules that have stood the test of time and enable traders to trade profitably, yet a lot of people fail to follow them. The rules are no secret to anyone as you will find them in many trading books and other materials. The rules like ‘cut your losses’ and ‘follow the trend’ have worked for hundreds of years yet most people ignore them!More -
Performance Monitoring
How do you know if you are trading well? One way obviously is to monitor the balance of your trading account, but how else can you keep track of your performance? How do you know that you can’t do better and make better decisions?More -
Why do Traders Fail?
Unfortunately for a lot of people who start trading, the majority of them will find success difficult to achieve. Often quoted figures suggest that around 80% of traders fail in the market and higher figures are used when discussing futures trading. One can only wonder what the 10 – 20 % of people are doing right as opposed to the vast majority who leave the market with less money than what they had when they started trading.More