There are some interesting facts about people when it comes to evaluating risk and loss. If we take a look at our perception of risk for example we’ll find that most people think that something familiar is much less risky than it actually is. While at the same time they think that something unfamiliar is […]
Trading Psychology
Trade Execution and Slippage
When newer students are testing strategies, I’m often asked about how trade execution and slippage effects “actual” results. The answer is… it depends. Let me explain. Trade execution is an art, a negotiation between two parties. The sales person or market maker is going to give you two prices, one you can definitely buy the […]
Be Careful What You Wish For
Whenever I’m considering working with someone, I always ask a series of questions. One of the questions I ask is “Why are you trading?” I bet it wouldn’t shock you to find out the number one answer is “I want to make more money!” which is the wrong reason by the way but I accept […]
Less is More
As I sit here looking at the 400 emails I’ve gotten this morning, I’m reminded of the massive amount of information we need to sift through on a daily basis and how all that information affects our journey as traders. I grew up with the belief that” knowing everything I could know” about a subject […]
How Memory Affects Your Trading
The emotions we feel and the actions we take are largely dependent on how we remember things. This is because we use our memories to learn. We might think something like “I remember the last time this happened. I did that and got a favorable result, therefore I will do that again.” The challenge however, […]
Training for Trading Success
Think back to the last time you experienced the opportunity to watch a world class performer, someone who really put on an amazing show. It doesn’t matter whether it was a musician, a sports athlete, an actress, a doctor or a business owner. When you see one of these performers in action, you can’t help […]