Trading Posts

8 Common Trading Mistakes

psychology Mar 27, 2024

The most challenging part of trading comes down to a disciplined mindset. Here is a list of 8 common mistakes traders may experience and ways to thwart a few misconceptions:

1) GET RICH QUICK

Whatever market, trading is NOT a get-rich-quick tool. The market is abundant and money will come, in time. But, going in with a money reward standard for each trading session will not only make you susceptible to blowing an account but extend the timeline before you are consistent. Understand that this is a game of patience and subscribing to a ‘signal service’ will not bring you financial independence.

2) STICK WITH ONE

Subscribing to multiple methods may disrupt a traders frame of thought. If the current system isn’t working out, blaming the course and jumping onto a new course is the seed of deceit. Re-learning a course will take longer and can be a hindrance to a trader’s career. Instead, stick with one...

Trading Drawdown

psychology Mar 25, 2024

All traders understand that a loss is unavoidable. Taking two losses back-to-back is likely. After three losses in a row, especially on the same pair, a trader generally has two paths to take:

Option A) Take a step back from trading, preserve capital, and wait for the market to show a better sign correlated to your trading plan or,

Option B) Continue to force trades (this is FOMO/GREED/EGO driven decisions) which can quickly turn into three or more consecutive losses, ultimately leading to double-digit losses.

Without a doubt, we want to be the trader that chooses the divine path of Option A but at one point or another, you will find yourself in a drawdown that not only brings you to question the strategy or trading plan, but yourself included – “am I meant to trade?” “Maybe trading isn’t for me?”. No worries, because you are NOT alone: ALL TRADERS HAVE ALREADY OVERCOME, OR WILL EXPERIENCE DRAWDOWN at some point...

10 Tips To Become A Profitable Trader

psychology Mar 21, 2024

There are many tips all across the internet that can be broken into subcategories in their own merit. However, these are the top ten things any trader should stick to when it comes to trading.

HAVE A PLAN – List ground rules of how you plan to trade. Plans can be created through various online sources that resonate with you or by adapting to an already established plan. A standard method should at least include: when to enter and exit a trade, management of a trade and risk allocation. Don’t place a trade without reason – otherwise, you’re gambling!
STICK TO YOUR PLAN – Don’t throw out your plan because your friend that just got into trading had one month of successful results. At this point you already established a successful trading plan, now stick with it! Altering your stop losses, increasing risk size, or altering your management can be detrimental to your overall journey. Stick to your plan!
DON’T STRESS – Once...

Importance of Backtesting - What Is Backtesting?

edge psychology risk Mar 18, 2024

The importance of Backtesting your trades could not be more paramount in your trading career. Apart from having a solid mindset, you need a solid strategy. Your strategy is only valid if it has been time-tested, meaning it can work across all market conditions over the years.

What is backtesting?

Backtesting is the process of testing a trading strategy or system using historical data to see how it would have performed in the past.

It is an important step in developing and evaluating a trading strategy, as it allows traders to see how their strategy would have performed under different market conditions and to identify any potential issues or areas for improvement.

There are several benefits to backtesting a trading strategy.

Firstly, backtesting allows traders to evaluate the robustness of their strategy, by determining its performance over a large sample of historical data. This can help traders to identify patterns or trends that may not be...

Think Like The 5% - Market & Mindset Consistency

psychology Mar 17, 2024

In the realm of trading, a stark statistic often captures the attention of newcomers and veterans alike: 90 to 95% of traders fail. This figure, while daunting, shifts the focus onto a critical question that most in the trading community overlook. Instead of dwelling on why the vast majority fail, a more productive inquiry is to explore what the successful 5% do differently. Their secret? Consistency. But not just any form of consistency—there are two distinct types that set them apart: the consistency in action, particularly in journaling and documenting trades, and the consistency in mindset towards trading itself.

Defining Success and Consistency in Trading

Success in trading doesn't necessarily equate to winning every month. Instead, it means sustaining the energy to improve daily, becoming an elite performer through an unwavering willingness to learn. This perspective requires us not to belittle another's success or to underscore the challenges of achieving consistency...

Resiliency Over Luck: The Trader's Advantage

psychology Mar 15, 2024

Luck can smile on anyone, but it's resilience that truly separates those who thrive from those who merely survive. Consider two scenarios: one, where an individual wins the lottery, and another, where someone builds their success as an entrepreneur. The former relies on chance, while the latter embraces resilience—a trait that can withstand and recover quickly from difficulties.

Entrepreneurship Resilience: A Skill to be Developed

In the world of 9-to-5 jobs, winning the lottery might seem like the ultimate stroke of luck. However, entrepreneurs understand that creating their opportunities is far more empowering than relying on chance. They make their "lottery" and print success at will. The study of Powerball winners sheds light on the divergent paths these two individuals take: a 9-to-5 worker might spend a $1,500 windfall, but an entrepreneur will use it to make that sum grow.

The Curse of the Lottery vs. Long-Term Wealth of Entrepreneurs:

The stories of...

Trade60 - Building Good Trading Habits

psychology Jan 01, 2024

Trade60: The Ultimate 2024 Challenge for Trading Success

Are you ready to take your trading game to the next level in 2024? Trade60 is the challenge you've been waiting for! Over the course of 60 days, you'll develop the essential habits of successful traders and build a strong foundation for long-term success.

The Four Pillars of Trade60:

1. Hydration - Fueling Your Success:

Trade60 Rule: Drink a minimum of half a gallon of water daily (64 ounces).

Importance to Trading: Staying hydrated is not only crucial for overall health but also impacts cognitive function. As a trader, mental sharpness is key, and dehydration can impair decision-making abilities. By prioritizing hydration, you ensure that your mind is in its optimal state for analyzing markets and making strategic trades.

2. Movement - Energize Your Body:

Trade60 Rule: Engage in at least 45 minutes of movement daily (a workout or a walk).

Importance to Trading: Physical activity has been linked to improved...

Setting 2024 Goals

psychology Dec 31, 2023

Crafting a Resilient Path: Insights from Episodes 58 and 59

As we usher in the end of the year, our recent podcast episodes have delved deep into the art of setting and achieving goals, providing a roadmap for those seeking purpose and intention as they navigate the journey ahead. In this blog post, we'll explore the highlights from Episodes 58 and 59, which focus on trading through the holidays and culminate in a powerful discussion on ending the year with goals and intentions.

Episode 58: Trading Through the Holidays - Missing Out on 1.28%

In Episode 58, we examined the impact of trading through the holiday season, specifically addressing the consequences of missing out on a 1.28% gain. The discussion set the stage for a profound exploration of tackling goals logically, prompting Reid to pose a crucial question to Glenn: How does one go about it?

Framework of Setting Goals: Episode 59 - Ending the Year with Goals and Intentions (Part 2)

1. Set Goals with a Purpose

...

Patience = Profits

mind trading mindset patience profits psychology trading trading mind trading tips Nov 16, 2022

It would be a lie if the monetary aspect of trading wasn't at the foremost of our mind when we got into trading.

In fact, profits is what drives so many people into the market with its endless, lucrative possibilities.

However,

New traders have a misconception that they can become a full-time trader in a year or less. Although possible, it is more than likely not probable of happening. Please read: IT TAKES TIME TO BE PROFITABLE.

Patience is a key aspect of trading.

You need to be patient in a live position.

You need to be patient before you place a trade.

You need patience with yourself and the systems you have in place when you take a loss.

Some of our best trades have occurred when we just let go of hoping and expecting something to happen. We walked away from our computers and let the trade run its course.

During a month long travel, I was trading at my best. In two back to back positions on NZDUSD & EURGBP, I was able to bank about 3% to close the week. It wouldn't...

4 Common Fears In Trading

psychology Oct 25, 2022

The Fear and Greed index on CNN business is at an extreme fear level at the time of writing this (OCT 2022).

Investors are fearful of the market uncertainty and rising prices.

Fear is a big emotion that can be detrimental to a trader’s profitability. The good part about fear is that every. Single. Human. Experiences fear.

Sometimes in the market it can be difficult to tell if you are trading from a place of fear or greed.

There are four major fears that we discuss in this episode when it comes to trading.

1. Fear of being wrong/wanting to be RIGHT. - requires strong mental fortitude and resiliency. As long as your edge has the probability of positive expectancy, there is nothing to worry about. Your proven edge will let you know how often you will be wrong vs right and that alone should be enough to give you a peace of mind. Attaching to that fear state will lead to devastating thoughts that can affect the next trade and the one after that ending...

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Defining Success and Consistency in Trading

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