Testing Your Discipline
Of all the traits necessary to become a successful trader, the DISCIPLINE to follow the rules is the most important. Find out how to test and improve your discipline to boost your profits.
Toppy and Choppy
One of the significant issues you’ll face as you enter the market arena is a lack of perspective. Every bull run seems as if it will go on forever, and minor pullbacks foretell the end of days. New traders just need some perspective on the market. Here are some tips on staying safe in this uncertain period.
Should I Stay or Should I Roll?
Let’s assume that you have a bull put spread that’s expiring next week, and it doesn’t look promising. Instead of closing the trade and taking the loss, you may be able to turn the spread into a winner. Here are some pro tips for rolling your trades.
The Perfect Indicator
I will say that there are some critical techniques to technical analysis and charting stocks. If you don’t at least learn the basics, you’ll be flying blind. However, too many novices are searching for that perfect indicator – the Gold Goose that never loses.
Mental Capital
Most traders consider cash as their only capital. Still, we have another kind, MENTAL CAPTIAL – our brains can only attend to so much at one time. How large should your portfolio be?
Waiting for the Fall?
From my experience and historical data, I can say with some certainty that it isn’t an easy month to trade. Always keep in mind that the seasons of the market should influence how you trade. So, if September is so risky, should you even trade at all? Here are some tips to keep you safe and profitable while we wait for the Fall to Winter rally.
Trade Troubleshooting in 3 Easy Steps
As Edwin Lefèvre remarked in his trading classic, Reminisces of a Stock Operator, “If a man didn’t make mistakes he’d own the world in a month. But if he didn’t profit by his mistakes he wouldn’t own a blessed thing.” This is some sage advice published way back in 1923. The market has changed – human psychology hasn’t.
The Magical 34 EMA
Money rotates through sectors, and one or more will always be trending upwards in a bullish market. All you need for some high-profit, longer-duration swing trades to a method for identifying when to get in to capture the big move.
Lessons from Darvas
For those looking to do some reading on great traders, I highly recommend the classic book by Nicolas Darvas, “How I Made $2,000,000 in the Stock Market”. Though Darvas wrote the book in 1960 and didn’t trade options, the insights of his self-taught trading career are valuable to this day.
Train Your Brain to Win
Trading isn’t just about trades. In fact, your mindset is more important than any set-up, stock, or strike price. This was my most significant personal challenge as a trader – realizing that no one was to blame for my results but myself. Here are some tips to help dial in your trading psychology.