When we confuse or frustrate a particular learned behavior it causes a reversion to an earlier learned behavior. This earlier learned behavior is typically less desirable, but comfortable and familiar. This regression of sorts occurs when we are unable to accept and perform at an expected level. Regression is a defense mechanism and can be [...]

I recently read an interesting article about trader education in which Bill Luby wrote “As I see it, all traders are ultimately self-taught.” I can attest to this statement, even though I did have a mentor, as my market participation today is steeped in my own blood and sweat. The knowledge I now have wasn’t [...]

There is no feeling quite like that of success in trading. To take the time to perform analysis on a name, establish a trading plan and then profit from your hard work is an awesome feeling. Putting a string of winning trades together like that is priceless. However, the chance of overconfidence or believing that [...]

There’s lots of research out there about business failure and for the most part, the same could be said for trading. Here’s a list of the 10 most frequented catalysts for business failure: 1. 78% lack a rigorously-developed business plan keyed to the realities of their market, including sufficient research on the business before launching [...]

Flow: An optimal state of engagement in which a person perceives challenges to action as neither underutilizing nor overwhelming his or her existing skills and has clear, attainable goals and immediate feedback about progress. Athletes often experience flow when they perform at their peak as every ounce of strength and focus is needed to achieve [...]

There is no feeling quite like that of success in trading. To take the time to perform analysis on a name, establish a trading plan and then profit from your hard work is an awesome feeling. Putting a string of winning trades together like that is priceless. However, the chance of overconfidence or believing that [...]

I’m presenting a psychology of trading webinar for free with the good folks at TradeKing. The webinar will be Tuesday, August 24th at 5pm ET If you’re interested, click the logo below to be taken to the page to register. I hope you’ll find the time to attend.

It seems so easy to focus on the things we do wrong. I can name hundreds of mistakes I’ve made in my life. I choose not to focus on what went wrong, but rather on how I can improve my standing and learn from my mistakes. I found one of the most frustrating aspects of [...]

One of the five factors the Market Awareness Profile (MAP) measures is conscientiousness– the way in which we control, regulate, and direct our impulses. Impulses are not inherently bad; occasionally time constraints require a snap decision, and acting on an initial impulse can be an effective response. Nonetheless, acting on impulse can lead to trouble in [...]

Stress comes from both external and internal forces with the latter being the only one we can control. As a market participant, there are stressors you can control but overall the profession is stressful. In other words, control what you can and accept the fact that trading is stressful. A few common examples of stress [...]