Most traders realize that trading involves a lot of psychology. And most traders readily admit that a significant portion of their trading losses, or lack of performance, is due to
We seek immediate comfort and try to avoid things that may bring immediate discomfort. Understand this basic principle that guides much of our thinking and behavior. Trading involves discomfort
I’ve been getting a lot of questions about confidence lately. There are many ways to look at confidence for a trader. Is it a belief? A feeling? A combination?
Taking a pre-defined loss is part of the business. Exiting a winning trade and watching it continue to work without you is part of the business. Missing an opportunity is
You need to know WITT Most market participants spend the majority of their time trying to understand and predict what triggers a move in the market. But the majority of
Many models of cognitive functioning like to use computer analogies. That can be okay, but has limited utility when you're actually trying to change something about yourself. The computer model
Many traders who do happen to have an edge with their methodology are still not performing well. If that was not the case, many more traders would be profitable. As
The alternative title for this blog was, 'Cognitive Flexibility Pays' Some things never change. When humans are faced with information or data and need to decide what to do with
Are You Making Money? I receive a lot of emails from traders asking for advice. As a full-time trader and trading coach my time is limited, but I do what
Take a moment to thoughtfully and honestly consider what is the greatest drag on your P&L. Is it the market itself, as in a chop, trend, or sideways? Is it
