FALSE EXPECTATIONS: Great article by Charles Maley over at Viewpoints of a Commodity Trader. Quoting Roy Longstreet: ““Many major problems people have in trading are caused by their expectations – of where the market is headed, how much money will they make from this trade, etc. One thing I learned that has helped me: it is wrong for a person to enter any market with any preconceived expectations.”
THE FIVE STEP PLAN TO SUCCESS…from a professional who knows. I have mentioned Dr. Van Tharp before as a professional trader who deserves a listen. Here he discusses ways to work on your success as a trader. For a good summary, check out Charles Kirk’s recent post.
IF YOU ARE GREEDY IT MAY BE BECAUSE OF YOUR TESTOSTERONE LEVELS: Not sure how this could exactly be related to trading other than helping to explain the emotion of greed.
WHAT IS YOUR DIGIT RATIO? And what exactly does it have to do with your potential success? This Psychology Today article points out that “successful trading in the financial markets requires more than correct beliefs about the value of securities. Traders must also possess confidence enough to place their bets, risk preferences high enough to place bets of meaningful size, and the ability to process information quickly enough to keep one step ahead of competitors.”
WHICH TYPE OF TRADER ARE YOU? I’m the second one. Just read the article and don’t pay attention to all the ads and headlines at this site, especially the one that will teach you how to make $87 million in one year trading options! Are there people out there who really believe this stuff??
IDIOT TRADING: I love it. I am a trend trader/swing trader because I use to be a an idiot trader. I have a completely different perspective on things since I moved to the other side…and a much healthier life I might add.
GOOD READS: A list of recommended readings by Vitaliy Katsenelson. Worth a look.
A REVIEW OF A GREAT READ: This one is right up my alley since “trading is war”.
