The idea about loving to take a loss seems contradictory to the whole point of trading, which is to make a profit. However, taking smaller losses relative to profits is necessary and an inevitable aspect of trading. Much like learning to ride a bike involves falling down, making these events small is a prerequisite to long term success.
A contrast to this situation is taking large losses and refunding your account periodically. If you can't stop, then at least I can say thank you on behalf of the rest of us for supplying our profits.
Sunday, March 2, 2008
Monday, February 25, 2008
News and Reviews
ForexFactory has many resources. My favorite is the calendar.
ForexPeaceArmy used to be forexbastards and offers a vast list of broker reviews...the retail forex markets are currently like the wild wild west, still in the process of being civilized.
ForexPeaceArmy used to be forexbastards and offers a vast list of broker reviews...the retail forex markets are currently like the wild wild west, still in the process of being civilized.
Newsletters
John Carter and Hubert Senter's Trade the Markets has a free and for pay newsletter, along with other for pay services. The free newsletter is a great starting point for learning how to day trade.
Stansberry and Associates has many newsletters. I'm currently a subscriber to True Wealth and the 12% letter. All newsletters offer trial periods with money back guarantees.
Stansberry and Associates has many newsletters. I'm currently a subscriber to True Wealth and the 12% letter. All newsletters offer trial periods with money back guarantees.
Mental Edge Resources
Ed Seykota's Trading Tribe is a formal method for delving into unacknowledged issues regarding your trading, which not so surprisingly shows up in every other area of your life. Tribes are located throughout the world, if there isn't one in your area, then Ed will help you start one. Ed is also featured in the book, New Market Wizards.
Ryan Jone's Smart Trading has for pay educational materials with specialization in personal psychology and money management. He occasionally offers discounts, so sign up for his newsletter. I'm a satisfied customer.
Ryan Jone's Smart Trading has for pay educational materials with specialization in personal psychology and money management. He occasionally offers discounts, so sign up for his newsletter. I'm a satisfied customer.
Education Resources
Baby Pips is free, has a great intro section.
Forex4Noobs is free, has a great intro section and many trade ideas. The trading approach described here is very simple and very profitable. The weekly analysis is a great resource for trade ideas.
James16 Group is free after 1 year of paying $129 per month. I'm a subscriber. The resources here go into great depth regarding personal psychology, money management and trade identification.
Ryan Jone's Smart Trading has for pay educational materials with specialization in personal psychology and money management. He occasionally offers discounts, so sign up for his newsletter. I'm a satisfied customer.
Jeff Quinto's Electronic Futures Trader is free to browse and has a for pay mentorship program. I'm currently a student. Jeff has 35 years of experience in the futures industry and can relate what's different and what's the same in moving from a floor trader to the screen.
Forex4Noobs is free, has a great intro section and many trade ideas. The trading approach described here is very simple and very profitable. The weekly analysis is a great resource for trade ideas.
James16 Group is free after 1 year of paying $129 per month. I'm a subscriber. The resources here go into great depth regarding personal psychology, money management and trade identification.
Ryan Jone's Smart Trading has for pay educational materials with specialization in personal psychology and money management. He occasionally offers discounts, so sign up for his newsletter. I'm a satisfied customer.
Jeff Quinto's Electronic Futures Trader is free to browse and has a for pay mentorship program. I'm currently a student. Jeff has 35 years of experience in the futures industry and can relate what's different and what's the same in moving from a floor trader to the screen.
Wednesday, February 20, 2008
You expect to wait for a good trade or investment.
Let me clarify my definition of trade and investment. I consider all trades to be investments and all investments to be trades. The only difference is how long the position is held. Trades are typically held from minutes to weeks, whereas investments are held for months to years.
The idea behind expecting to wait for a good trade is pretty simple. If you want to make big returns, then you expect to wait for a great trading opportunity to present itself for entry. That also means you expect to wait for a great exit, which could be a great opportunity in the opposite direction.
If you can't wait for a great opportunity to present itself, maybe examine your motivation for trading. I assume you want to make the highest return with the minimal amount of loss. If you're motivated by the "action" of the market and the adrenaline rush of buying and selling, then either only demo trade or find somewhere else to get your fix...try roller coasters.
The idea behind expecting to wait for a good trade is pretty simple. If you want to make big returns, then you expect to wait for a great trading opportunity to present itself for entry. That also means you expect to wait for a great exit, which could be a great opportunity in the opposite direction.
If you can't wait for a great opportunity to present itself, maybe examine your motivation for trading. I assume you want to make the highest return with the minimal amount of loss. If you're motivated by the "action" of the market and the adrenaline rush of buying and selling, then either only demo trade or find somewhere else to get your fix...try roller coasters.
Tuesday, February 19, 2008
You don't need to trade or invest to survive.
This may seem obvious, but there are a couple key points to make.
1. knowing that you have food, shelter and warmth is going to help you take actions you're unaccustomed to, like getting in a trade at the right time, getting out of a trade with a small loss and staying with a trade until the market tells you it's time to get out.
2. trading is a skill that takes practice, how long it takes depends on you...
3. markets change over time, so you may learn how to successfully trade one type of market, only to find that you need to learn how to trade a different type shortly after.
1. knowing that you have food, shelter and warmth is going to help you take actions you're unaccustomed to, like getting in a trade at the right time, getting out of a trade with a small loss and staying with a trade until the market tells you it's time to get out.
2. trading is a skill that takes practice, how long it takes depends on you...
3. markets change over time, so you may learn how to successfully trade one type of market, only to find that you need to learn how to trade a different type shortly after.
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