Archive for the 'Trading Psychology' category

The Building Blocks To Becoming A Better Trader

Date Thursday, June 4th, 2009

Every trader begins their own arduous trading career by taking baby steps in learning and improving their knowledge and skill in a continuous manner. They need to focus all of their energy and effort to improve the probability of wining in every trade made while simultaneously learning to deal with emotions. Everyone of us are unique individuals. We look at the same situation but we react and also analyse it differently. While the basic knowledge for trading, both fundamental and technical analysis are similar for most financial instruments, an example can be the analysis of the potential of a certain company stock to make money. However, the methods of trading, the trading plans,level of discipline and emotional aspects for each individual are very different. This is why it can be difficult to make money in the market and have a trading career if the individual trader does not improve on his areas of weaknesses. Read the rest of this entry »

Finding You Own Trading Style

Date Friday, May 22nd, 2009

Some of us may start trading after attending a trading course in exchange for the knowledge imparted by some amateurs or experts. Some people may start trading after reading several books and paper trading for months. Some regard trading as a way of lifestyle, playing the game of who’s right and who’s wrong on the pricing of the securities. people walkingSome regard trading as a self discovery journey on how to deal with innate human emotions. Whatever the case may be, all of us began our own trading career some point in life with many different reasons. We have our unique own way of analysis and looking at things differently, not to mention on how emotions will affect our reactions in different market conditions. That is why we always hear people saying that the market is always in a constant flux of emotions. It is a chaotic place where greed and fear prevail. If there is ever a list of the toughest careers in the world, trading has got to be one of them. This is a career that will require your passion, dedication, full focus, discipline, lots of thinking and reading on your part to constantly upgrade your knowledge and trading skills, and most importantly of all, your ability to control your emotions and not let them affect your judgment. Read the rest of this entry »

Should You Trade Naked?

Date Monday, May 11th, 2009

When i first started out and was exposed to the world of trading in the year 2006, the first most important thing that i was being told repeatedly by experienced traders, was to never trade without a plan. “Trade without one, you are just a naked soldier in the battlefield without your armor”. Read the rest of this entry »

Are Hot Tips Accurate?

Date Thursday, May 7th, 2009

Every now and then, we hear some juicy news about a certain company making huge profits or about to liquidate, that is filing for bankruptcy. These juicy information can be found anywhere on line, from forums, chatting channels to the occasional spam emails we receive …etc While in the reality world, such news are also available in wet markets where housewives flock to, to casual gossips between people at food centers and even a simple conversation between you and the cab driver. The question is, how accurate are these hot tips? Are they reliable? Should i invest now in case i miss out on making huge potential returns to my portfolio? Well, there is no definite right or wrong answer to them. Why? Read the rest of this entry »