Tag Archives: discipline

Email: Overtrading and lack of discipline.

….I tend to over trade and find it very hard to stop myself  from hitting my daily stop.  I just always feel like I can do better whether I am up on the day or down. This email came from someone who bought Top Trading Tips For Our Time and as promised I got back to them. HereContinue Reading

How to explain to a 7 year old what makes trading difficult.

This conversation started because I was sitting at the table a few weekends ago and my nephew asked me what I was doing, I said I was doing homework.  “You are in school?” “Not in the same way you are but I still have to do homework.” “Do you have a teacher?”  “Yes it isContinue Reading

Not an accomplishment it is necessary.

It is important to understand the difference between a prerequisite and an accomplishment. Zero is the necessary minimum to achieve a task.  Showing up to work is not an accomplishment it is a prerequisite for keeping the job.  Trading has prerequisites that can be confused for accomplishment.  Here are some: Admitting you are wrong/made a mistake.  Mistakes happen andContinue Reading

When participants change, reaction does too.

I realize this post is about three years too late or at least two years but I see some people making the same mistakes and it is good thing to think about any way. As a general rule, I do not talk about current market conditions because if you want to know our thoughts you canContinue Reading

Futures returns math and how you might be taking too much risk.

Futures is one of the last business opportunities where the good are rewarded more than the bad are punished.  This is because of leverage and how much discipline is required. I was talking to trader who trades 1’s and 2’s.  They were not happy with making $200 a day. First, I think it is importantContinue Reading

Every trader must believe in God.

Ok, not God but you have to have a believe in something you can’t always see, profits and progress. This is a big problem I see with traders.  Either they are new to trading or they have gotten beat up in the past.  They do not know what hard work is or how to notContinue Reading

What to do after having a monster day.

Lets face it we are traders for the unlimited upside, having no customers, and no employees.  When you achieve that unlimited upside, what do you do? The first time The very first thing you should do is to order a check.  Take the money out.  Spend some on yourself.  Enjoy it.  You reached the nextContinue Reading

Healing is an important skill set for trading.

This idea originally written about in Feb 2011. How do you heal?  There are going to be tough times in this business and your ability to get back up or to know when to get back up is important.  Let me explain that again.  Some people can come back right after a loss and stillContinue Reading

3 differences between a professional trader and a home gamer.

There are at least 3 differences between a professional trader and a trader who wants to be a professional. Can look past current trade. Just like every move does not mean another trend neither does every movement in the P/L.  Satisfaction or disappointment comes at the end of a trading day, trading month, or never. Entry priceContinue Reading

You aren’t born with discipline.

Discipline is important, especially in volatile markets.  Discipline is not something that you are born with it is something that has to be learned.  Think about a family member or even yourself, are you discipline and they are not or vice versa?  This has nothing to do with DNA.  You either want it or youContinue Reading

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