Tag Archives: losses

7 dirty words you can’t say while trading. Enjoy the weekend.

This originally appeared in January 2011. Be careful how you use the following words and phrases. Should– Phrases include: “The market should have” and “I should have”. Those phrases are often used to socialize losses. They are a strong signal something is off. They should be used to aid you in correcting your vision notContinue 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

The hidden losses.

Hidden losses occur when you do not get out on the best tick. It is impossible to always get out on the best tick and even harder if you are not trading multiple contracts. Not saying everyone should trade multiple contracts, it could also be that your trading plan does not allow it. But IContinue Reading

Two reasons this isn’t window dressing.

The Reformed Broker has a piece out today talking about window dressing.  As a technical analyst I am aware of the games that can happen but I can’t ever bet on it.  The reasons why a market moves doesn’t really matter to me. Of course you put things in the back of your mind forContinue Reading

How over trading develops into a problem.

There are a few things to consider when analyzing how much you are trading.  For me it is volatility and efficiency.  There is nothing I can do about volatility but efficiency is something I look constantly.  If you do not look at efficiency you are always prone to the following problems. False sense of risk. Every trade hasContinue Reading

Risk/reward ratio is bullsh$t.

When people ask what is a good risk reward ratio, I think they ask for the wrong reasons.  Risk/reward is not about an expected outcome it is about trade selection or trade elimination. By only taking a trade with an X for 1 ratio you are eliminating trades.  By only taking these types of tradesContinue Reading

Accepting responsibility for your good and bad trades.

When a trade works really well what do you look at first?  The market or yourself? When a trade doesn’t work what do you look at first?  The market or yourself? Accepting responsibility for both gives you motivation and reminds you of the risks. Empowers If you take the focus off of yourself and put itContinue Reading

7 Dirty Words of Trading

This originally appeared in January 2011. Be careful how you use the following words and phrases. Should– Phrases include: “The market should have” and “I should have”. Those phrases are often used to socialize losses. They are a strong signal something is off. They should be used to aid you in correcting your vision notContinue Reading

Getting ran over by the bull and eaten by the bear.

There were many times when I continued to sell into a ferocious rally and times when I bought breaks when the market was collapsing.  If I had the unfortunate circumstance of getting past my stuck short/long mentality and tried to buy a rally/sell a break I would undoubtedly buy the high/low or get stopped out on theContinue 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

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