Whenever I look at a price chart I want to make sure that there is no rigid preference in my mind for it to go in whichever direction. If I happen to “know” where the Market will be going, I am setting myself up to a failure in the long term. And still, I do know […]
When anyone who knows about Your Trading Coach, reads back into my old blog posts, it should become obvious to them that my understanding of Price Action was heavily influenced by Lance’s approach. Even though my trading system is mid to long term, I am reviewing his Price Action articles anytime I feel like I […]
Depending on trading timeframe that we use, we will also have different breadth of the market that we can cover. Intraday traders and scalpers generally will not closely monitor more than 1 or 2 instruments, simply because the speed with which they receive information for each instrument is too fast, and they can’t handle many […]
If I were to define the most important Money Management rule in one sentence, it would be this: Make sure you have the money tomorrow to invest with. It is that simple. Every day, do whatever you should according to your trading strategy (analysis and entry systems), but make sure that no matter what happens today, tomorrow […]
In the first part we discussed the risk we have on the market – our initial Stop Loss being hit. I was lucky to have a natural fear of financial loss operating in me on a very deep level from the first days I started trading. Interestingly enough, because I was so cautious with any potential loss, […]
…most traders erroneously assume that because they are engaged in the inherently risky activity of putting on and taking off trades, they are also accepting that risk. I will repeat that this assumption couldn’t be further from the truth. Accepting the risk means accepting the consequences of your trades without emotional discomfort or fear. This means that you […]
In the previous issue we discussed how our Analysis and Entry processes help us to find trading opportunities on the market. However, even when the trade is clearly identified many traders will still hesitate to take it. Convincing yourself to take the trade After the trades are clearly identified during the analysis phase, we still […]
Finding the trades While there are many parts of trading business that are essential to trader’s success, the core area is undoubtedly finding and executing the trades. There are two parts of our every day trading process that are designed with that purpose in mind: Analysis System and Entry System. Analysis System is designed to […]
Handling complexity In his book “The Checklist Manifesto” Atul Gawande shows how very costly mistakes are avoided using simple paper checklists. He provides a very detailed account that we can learn a lot from. The truth about modern life is that it became way too complex for most people to handle by keeping information in […]
Unrealistic expectations As I mentioned many times before, it is my opinion that your expectations about the market is one of the most important aspects in defining you as a consistently profitable trader. Market is unlike any day job in that you do not have a clear certainty in your expectations, like the amount of […]
