0Posted by Michael Glass on September 25, 2011 at 10:24 am
Trading in the Zone
The Psychology of Trading
Part 1
Most traders begin their career in trading by logging on to Google to find the latest and greatest technical indicators and trading setups. They believe that if they can just find the “perfect” trading system that they will well on their way to the Holy Grail. Experienced traders know that the true secret to the Legend of the Holy Grail is not found in an indicator or trading setup. Instead, it is an individual trader’s ability to manage the internal battle between wins and losses. In other words, in order to be a successful trader, you must be able to master the Psychology of Trading.
In the book Trading in the Zoneby Marc Douglas, it states the key to becoming a successful trader is developing a trader’s mindset. Reading this, you may think that acquiring this Trader’s Mindset would be easy. For some, it may be; however, for most it is the exact reason that they have never been able to trade consistently and most importantly profitably. Being able to stay focused and disciplined to your backtested trading plan clearly separates those who make money on a day to day basis and those traders who ride the stressful roller coaster of up and downs (unfortunatley more downs than ups).
Profitable traders are able to think differently about the market. First, they are able to control their fears about trading. Notice I did not say eliminate. We all face those fears each and every day. The different is that successful traders are able to maintain focus and control of their emotions to help prevent self-sabotage. In addition, they recognize that the stock market does NOT have a vendetta against them. It is not the trader vs. the market. Instead it is the trader’s ability to receive the opportunity flow the market provides each day. Sometimes you win. Sometimes you lose. Either way, the market provides opportunities. It is our jobs as traders to apply the appropriate strategy to the current market condition.
0Posted by Michael Glass on August 13, 2011 at 3:12 pm
Developing a Trader’s Mindset
Interview Series
Part 4 – Peter Reznicek
Shadow Trader
I am often approached by new traders looking for advice on how to change their trading results. My response is usually about the fact that trading alone is pretty easy. The hard part to trading is developing a trader’s mindset. It is often said that over 80% of all day traders fail.Anyone can go out on google or visit a local Barnes & Nobles and find a book or website on the latest technical indicator or trading system. However, what separates those traders who can go out consistently and make a profit in the stock market and those who are losing everyday is the ability to not only recognize opportunities in the stock market, but to be in full control of your emotions and make proper decisions about what they perceive may happen.
New traders are using in search for the Holy Grail. They are looking for the magic bullet that will instantly change their trading results over night. In the book, Trade Your Way to Financial Freedom, Dr. Van Tharp described the Legend of the Holy Grail as the ability of a trader to manage the internal struggle between profits and losses. Not an indicator, not a guru, not a trading room, but the ability to control your emotions on your wins and your losers.
Developing a Trader’s Mindset is the key for both new and seasoned traders to become profitable. A Trading Mindset helps you to not only recognize candlestick chart patterns as they develop, but it also helps have the discipline to wait for the pattern to confirm. It helps you to trust your proven trading system because you have backtested the setups. You know that you can have a positive expectancy about your trading results. So, I decided to go out an interview some of the traders who have impacted my trading results and share them with you all.
In our fourth installment, I had to great pleasure to speak with Peter Reznicek, better known as The Shadow Trader from Think or Swim. I have been a big fan of Peter for years. I began listening to him via Think or Swim from the beginning. He has an excellent knowledge of the market and a great ability to teach and trade at the same time.
ShadowTrader’s entire suite of services are designed with the serious, active, equity and FX trader in mind. Whether it’s a trade from our Swing Trader, FX Trader, or Pairs Trader, or a live real-time call in our Professional Traders Squawkbox, ShadowTrader delivers it with defined stop, defined target, and defined entry. ShadowTrader consistently relays more vital market information in real time than any other service on the web.
All shadowtrader products are FREE! You can access the Squawk Box live every trading day from 9:15am to 4:15pm EST on the thinkorswim by TD Ameritrade platform
0Posted by Michael Glass on July 23, 2011 at 3:24 pm
Developing a Trader’s Mindset
Interview Series
Part 3 – Gregory McLeod
I am often approached by new traders looking for advice on how to change their trading results. My response is usually about the fact that trading alone is pretty easy. The hard part to trading is developing a trader’s mindset. It is often said that over 80% of all day traders fail.Anyone can go out on google or visit a local Barnes & Nobles and find a book or website on the latest technical indicator or trading system. However, what separates those traders who can go out consistently and make a profit in the stock market and those who are losing everyday is the ability to not only recognize opportunities in the stock market, but to be in full control of your emotions and make proper decisions about what they perceive may happen.
New traders are using in search for the Holy Grail. They are looking for the magic bullet that will instantly change their trading results over night. In the book, Trade Your Way to Financial Freedom, Dr. Van Tharp described the Legend of the Holy Grail as the ability of a trader to manage the internal struggle between profits and losses. Not an indicator, not a guru, not a trading room, but the ability to control your emotions on your wins and your losers.
Developing a Trader’s Mindset is the key for both new and seasoned traders to become profitable. A Trading Mindset helps you to not only recognize candlestick chart patterns as they develop, but it also helps have the discipline to wait for the pattern to confirm. It helps you to trust your proven trading system because you have backtested the setups. You know that you can have a positive expectancy about your trading results. So, I decided to go out an interview some of the traders who have impacted my trading results and share them with you all.
In our third installment, we have the pleasure of speaking with Gregory McLeod of FXCM’s trading and education division. As I began looking at various Forex trading strategies, I came across the forum @ DailyFX. There I came across a Free daily trading room called Pip and Run. Greg was the moderator of the room. As a new forex trader, I found his strategy of focusing on a multitude of small high quality trades versus big home run trades interesting. It seemed like a good way to protect your capital. Luckily for us, he was gracious enough to donate his time for this interview. He has some real out of the box ideas about trading and shares them during interview.
1Posted by Michael Glass on June 30, 2011 at 2:18 pm
Developing a
Trader’s Mindset
Interview Series
Part 1
I am often approached by new traders looking for advice on how to change their trading results. My response is usually about the fact that trading alone is pretty easy. The hard part to trading is developing a trader’s mindset. It is often said that over 80% of all day traders fail.Anyone can go out on google or visit a local Barnes & Nobles and find a book or website on the latest technical indicator or trading system. However, what separates those traders who can go out consistently and make a profit in the stock market and those who are losing everyday is the ability to not only recognize opportunities in the stock market, but to be in full control of your emotions and make proper decisions about what they perceive may happen.
New traders are using in search for the Holy Grail. They are looking for the magic bullet that will instantly change their trading results over night. In the book, Trade Your Way to Financial Freedom, Dr. Van Tharp described the Legend of the Holy Grail as the ability of a trader to manage the internal struggle between profits and losses. Not an indicator, not a guru, not a trading room, but the ability to control your emotions on your wins and your losers.
Developing a Trader’s Mindset is the key for both new and seasoned traders to become profitable. A Trading Mindset helps you to not only recognize candlestick chart patterns as they develop, but it also helps have the discipline to wait for the pattern to confirm. It helps you to trust your proven trading system because you have backtested the setups. You know that you can have a positive expectancy about your trading results.
So, I decided to go out an interview some of the traders who have impacted my trading results and share them with you all. Each trader in this interview series has help me develop from being a struggling day to day trader to becoming a consistent and profitable trader. First up in our series is Ayal Cohen of High Point Trading. Click the link below to listen to my interview with Ayal where we talk about:
Trading Philosophy
Suggested Books to Read
Where Traders Should Place Their Emphasis to improve their Trading
#1 Trading Strategy to Change your Trading Results
0Posted by Michael Glass on June 13, 2011 at 2:24 am
Intructional Video Curriculum
Series 1 – The Basics of Investing
The first part of our video series was designed to introduce beginners to the fascinating world of trading. Buying and selling of stocks is referred to as trading in the financial market. You can search on the internet and come across thousands of product promising to bring you millions. We want to emphasize, however, that investing isn’t a get-rich-quick scheme. Taking control of your personal finances will take work, and, yes, there will be a learning curve. But the rewards will far outweigh the required effort.
We want to build a foundation first before covering some of the more advanced trading techniques. In order to cover the basics of investing, we divided it into 8 videos. Watch each and feel free to email or leave a comment below with any questions.
If you are not seeing the videos, it is because you are not a subscriber. You can learn more about becoming a subscriber to our Instructional Video Curriculum by Clicking Here.
