trading mindset

January 16, 2015

Lessons from What I Learned Losing a Million Dollars

Black Friday Several Friday’s ago I had the type of session that could have ended very badly for me. I started the session with a good trade but then missed an easy opportunity which would have allowed me to meet my trading goals for the day.  I call it missing the “one and done” trade.  Truth be told, everything after that feels like a blur.  The mental switch was flipped and I then proceeded to act like the proverbial bull in a china shop and chasing the market to try to make something happen.  By the end of my trading session I was […]
October 23, 2014

The Fallacy of Setting Daily Goals

I was once blinded by an argument. One so obviously framed that it had to be true. Unfortunately, what is obvious or self evident is not always true. Call it reductio ad absurdum at its finest. Let me share with you how it goes, tell me if you’ve ever heard this. What if i were to tell you that you only needed to make an average of 2 ES (E-Mini S&P) points a day and you could pursue the lifestyle of your dreams? By the way 2 ES points is equivalent to $100 per contract traded. Now if you capture […]
October 7, 2014

Is your trading a business or hobby? Hint: Businesses have shareholders

September 13, 2014

Slow down to speed up

High Speed Decision Making One of the most important competencies that an intraday trader need have is the ability to make high quality decisions in a high speed trading environment. One of the key areas I see new intraday traders struggle with is the speed of the game.  Often taken for granted is the sharp learning curve that must take place to adapt from trading on the daily or weekly charts to trading on a lower timeframe or tick chart. The errors that a high speed environment can throw off will trigger all manner of execution errors and cognitive biases […]
August 1, 2014

Stop Trading Small

Let me start with a question – “Are you trading small?” Trading small or trading big has nothing to do with the size of your account or your trade size, or any other metrics that could be used to judge your trading actions. The metaphor of trading small or trading big is all about understanding what is driving and motivating your trading actions. Trading small refers to the part of us that is focused on short term gains, temporary comfort, security, relief, and validation. Trading small usually means cutting our winners short in favour of taking small profits to maintain […]
July 18, 2014

The Trade Journal – Your Trading Edge

How are you determining what are your best and most profitable setups? Do you know the average profitability and probability of profitability of each of your setups? Do you know your trade setups compare by the day of the week?  Or better yet by the time of day? How do you know when it’s time to add size to your trades? How do you know if a setup is losing it’s edge?  And how do you distinguish whether it’s because of the market conditions or because of your personal execution? Ahhh Journaling – the dull red headed step child of trading. […]
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