Tag: trading psychology

Cognitive Flexibility

Cognitive flexibility is being aware that in any given situation there are options and alternatives available. As an example, you don’t have to stay in a losing position, yet so many traders do just that as their conviction in a trade turns to hope. Cognitive flexibility is a critically important executive function  that occurs, almost

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Are you an instinctual trader?

How would you describe the decision process of your trading? Is it mainly based on technical analysis? Do you incorporate fundamental analysis at all? What about astrology? How much does instinct come into play in your trading decisions? Probably more than you’d like to admit. I’ll post a follow-up to this question later. For now,

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Overcoming poor trading habits

Poor trading habits are difficult to overcome, especially those that have been a part of a trader’s routine for years. Part of the reason is that habits are perfected through experience. Habits can be formed and reinforced through expectations (from one’s self or others), triggers (smells, visuals, etc.) and even market conditions. Research suggests that

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Finding your niche

I truly believe that in order for both success and longevity in the market one needs to specialize. Having a systematic approach to the markets is a proven winner. I’ve taken the time to round up some of the systems that are out there to help you decide. Enjoy! Hope: There is nothing quite like

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Don’t Be A Jack

I have a guy that lives down the street from me that I’ve used to tack down loose floorboards, repair cracks in my driveway, clean the gunk out of my gutters and much more. He makes a decent living doing such odd jobs and has a vast knowledge of many things. However, depth of knowledge

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Las Vegas Money Show

I recently had the opportunity to present at the Money Show in Las Vegas. Below is a brief clip of me rambling about whether or not good traders are born. If you found this clip helpful there are others on the site, just search for my name. My presentation at the conference was webcast and

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Innateness and Trading

I’ve posed the question several times before regarding how much of trading success can be attributed to innate ability. The answer is none, as Richard Dennis and Bill Eckhardt so proved with their Turtle Trader experiment back in the early 80’s. What is innate that has an impact on our trading are habits. MIT’s McGovern

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Mindfulness

No question that there is volatility in the markets right now. Too much volatility can lead to an increase in stress, especially if your trading involves holding positions longer than 5 minutes. Stress is part of the business so we have to adapt to it, both physically and mentally, or fade away. For some it

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The Importance of ESC

From Wikipedia: When ESC (Electronic Stability Control)  detects loss of steering control, it automatically applies the brakes to help “steer” the vehicle where the driver intends to go. Braking is automatically applied to wheels individually, such as the outer front wheel to counter oversteer or the inner rear wheel to counter understeer. Some ESC systems

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Trader’s Expo

I’ll be presenting at the Trader’s Expo this November in Las Vegas and hope that you’ll be able to attend the event. I’ll be talking about the importance of matching your trading strategy with your personality. If you’ve ever been curious about the relevance or impact of your personality on your trading then you’ll want

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