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 important…
Tag Archive: making money
Three stages of trading objectives.
I am looking back on how my objective as a trader has evolved. It is funny how much theory and application changes how you view things. Letting the market/situation change how you view it is important. Everybody comes in with some expectations and it is constant race to keep the spread tight between expectation and reality….
Your trading goals are wrong.
I wanted to make money from the start. I thought it was going to be easy. Everyone was making money. Remember, I started my trading career at the CME. You knew if people were making money. You could see the cars they were driving. You would see them at breakfast eating lobster at the Merc…
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 not…
If you are right you are doing it wrong.
Being “right” can be a psychological substitute for making money, be careful. You identified a good trade, now execute it. Enjoy it for a second and get back to work, you now have a greater responsibility because now you know what you are capable of. Identify a trade Find a way to break-even Find a…
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 next…
Giving back profits and taking too much risk.
There is no profit too small you shouldn’t take it. If the market isn’t giving you anything it is ok to peel it off. Start again. The best traders get in and out on the best ticks. This is much easier to do trading multiple contracts because entry and exit risk is not as…
Your state of mind when you take risk is as important as the risk.
I could probably write or talk about risk for days. As a trader you have to be comfortable with risk. This often means redefining it. Part of redefining it is knowing your state of mind when you take risk is as important as the risk. There are times when the risk looks different because of…
There are only three types of traders.
There are only three types of traders, they are defined by how well they execute their trading plan (rules applied to strategy). A trader that performs worst than their trading plan. These traders often have a weak understanding and belief in their trading plan. How they feel is more or as important as making money….
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 the…
