New traders frequently struggle with the compulsion to be right. This need is often rooted in ego, and it can plague a developing trader and lengthen the learning curve substantially. The desire to be right is so potent that it drives them to engage in counterproductive trading behaviors as they strive to avoid admitting their mistakes.
The fear of missing out (FOMO) is an emotion that often haunts traders, casting a shadow on their progress and overall equity curve. Unrestricted FOMO can cause traders to chase trades, oversize, and revenge trade - All of which do serious damage to trading portfolios. In this article, we present seven concise steps to help you seamlessly transition from the anxiety of FOMO to the joyful state of missing out (JOMO).
If you have been in the trading world for a few years or longer, you know that consistent improvement is the key to success. To achieve this, traders rely on a powerful, but incredibly simple tool: Trade Review. An important component of this is the Weekly Performance Review. This structured process is designed to evaluate your trading activities, pinpoint strengths, address weaknesses, and pave the way for better decision-making.
Trading is a journey of mastery, viewed through the multifaceted prism of three overlapping lenses. These lenses are the Technical Lens, the Performance Lens, and the Self Lens. To achieve true mastery in trading, one must skillfully balance and synchronize these three lenses. Let's delve into each of them.
Becoming a consistently profitable trader is a journey that requires continuous learning and adaptation. Whether you're just starting or have some experience, there are essential principles to consider that can significantly speed up your progress in the world of trading. In this article, we will explore these valuable insights to help you navigate the markets more effectively.
Chasing trades is a pitfall that many traders fall into, often with detrimental consequences for their portfolios. In this article, we will explore the three primary reasons traders chase trades - FOMO (Fear of Missing Out), the belief that any trade can turn into a winner, and the disregard for a well-thought-out trading plan. More importantly, we will provide actionable strategies to help traders break free from this destructive cycle.
A trader's ability to make informed decisions is profoundly influenced by their understanding of various mental models. These cognitive frameworks, rooted in psychology and probability, shape how traders perceive and respond to market dynamics. In this comprehensive guide, we delve into 15 crucial mental models that can empower traders to navigate the markets more effectively.
Trading success is often measured by the size of one's gains and the ability to consistently turn a profit. After all, as traders we have a giant daily “scoreboard” telling us how well we are doing (in the form of our daily PnL). Yet, for many traders, these aspirations can become a double-edged sword, leading to unrealistic expectations and, ultimately, disappointment.
Becoming a consistently profitable trader is a journey fraught with challenges, and at times, even the most seasoned traders find themselves facing setbacks. The allure of quick wins and instant rewards often clashes with the reality of trading – consistency, persistence, and hard work, all without the guarantee of success.
Becoming a profitable trader is a journey of continuous learning and self-improvement. As you embark on this path, setting strategic goals and guidelines is one of the keys to achieving and maintaining consistency. I most often hear traders only talking about profit when it comes to trading goals. It's important to recognize that proper trading goals extend far beyond mere weekly or monthly profit targets.
Day trading can be a highly stressful activity. The fast-paced nature of the markets, combined with the constant pressure to make quick decisions with limited information and an uncertain outcome can take a toll on your mental and emotional well-being. However, with the right techniques you can effectively manage stress and maintain a healthier trading experience. In this article, we will explore helpful techniques that will help you keep your stress levels in check and navigate the markets (and life) with a healthier mindset.
Have you ever wondered how some traders consistently rake in six to seven figures in profits while others struggle to find their footing in the markets? Well, let me share a little secret with you. Behind the scenes, these successful traders rely on a powerful tool called a trading playbook. This tool was a game changer for my personal trading and is something that I recommend all of my clients create and utilize in their trading business.