Tag Archives: losses

This is the most bullish on the market I have been in awhile.

I am bullish on the market but I do not know where it is going.  To say this break wasn’t needed or even predictable is to ignore the writing on the wall. Fear vs uncertainty NFP came out really awful.  The market sold off (and then popped). But it starts the healing process and that isContinue Reading

Missed opportunities easier made up than losses.

I have heard that saying before but most recently from @gapandyap. I view the psychology of trading and its components like a series of teeter totters. There are many ways to get balance.  All at 50% or 4 at 60%, 6 at 40%, etc.   Finding the right balance for the right situation is basedContinue Reading

3 situations that make trading more emotional.

It is nearly impossible to take away emotions in trading. And I am not sure I would actually want to take all of them away. The problem is that too much of anything is a bad thing. Here are few reasons a trader might be too emotional. Can’t afford to lose. Losing the money youContinue 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

Remix: 10 Rules for Rookie Day Traders

There are always going to be different sets of list for new traders. All offer some value. We are always going to believe our rules are better, obviously we are biased. Michael Sincere wrote a post entitled 10 Rules for Rookie Day Traders.  His rules are in bold with comments below. Here is our philosophyContinue Reading

Hedgers are to blame for rises in commodities.

It is always easiest to blame something you do not understand.  My job as a speculator is to provide price discovery/liquidity/hedging.  I get an opportunity, the key word is opportunity, to make money for providing this service.  I am not different than any other business. What is a future? A future is a contract betweenContinue Reading

Randomness and markets.

We get random wrong. I lose several times a day and have lost thousands of times in my career and hopefully will have an opportunity to lose tens of thousands more times. In order for me to continue to trade I have to rationalize the losses. Some are losses and some are mistakes, some areContinue Reading

Admitting you are wrong.

Admitting when you are wrong does not necessarily make you a better person. It does make you a better trader. You can’t hid from your losses. The longer you have thoughts or feelings that are positive about an action that produces a negative result the harder it is to change that behavior. Said another way,Continue Reading

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