Tag Archives: expectation

How you define an outcome (losing capital), changes future outcomes.

(From the archives) Redefining or changing a word in a sentence can provide the necessary psychological shift to see things in a different way. This different perspective can lead to different results (hopefully positive). Probably the most common redefined word in finance is “Loss” which is turned into “Investment in Education” or “Tuition”. I amContinue Reading

How expectations will destroy you.

In most things success depends on knowing how long it takes to succeed. – Charles de Montesquieu That great quote came across my twitter feed from @PhilosophersSay via @eminiplayer.  It best sums up expectation and is extremely useful in trading.  The most simple thing I can say about expectations in trading is that at first youContinue Reading

5 words in trading that are bull&!#%

There are few words that get thrown out a lot that do not share the same context as their everyday counterpart. Consistency-  if anything other than your process is consistent you are looking at it the wrong way.  If you are consistently making the same money everyday and the market is changing you are doingContinue Reading

What is the worst that can happen?

This is a follow up to yesterday’s post about not pulling your trigger.  I cannot express enough how difficult it is to trade if you are using money that you need to pay the bills.  Some people love that pressure but I think it is too much, especially for those just starting their career.  IfContinue Reading

Difference between a good scratch and a bad scratch.

By scratching, I mean getting out at or near where you got in, resulting in little to no loss or gain. When I enter a trade, psychologically that money is gone. I have assumed the outcome of a trade to be a loss, at least initially. This is not because I am pessimistic, but ofContinue Reading

How you define an outcome (losing capital), effects future outcomes.

This originally appeared in March 2010. Redefining or changing a word in a sentence can provide the necessary psychological shift to see things in a different way. This different perspective can lead to different results (hopefully positive). Probably the most common redefined word in finance is “Loss” which is turned into “Investment in Education” orContinue Reading

Secret to trading success: You.

Originally appeared in July 2010. “You are the weakest part of your system”. That is a defeatist statement and completely untrue. It makes your expectation to fail easier to accomplish and more importantly it makes failure easier to handle. It shifts the pressure away from you and unto fate. Would you fly on an airlineContinue Reading

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