Reblog: 8 Life Lessons I Learned From Becoming a Trader


Although I’ve only been involved in the markets for about 10 years now, looking back, becoming a trader had a huge impact on me, and it profoundly changed me. It changed my way of thinking and looking at things, it challenged many of my previous beliefs and ultimately changed part of my personality. And it had repercussions in many other areas of my life.

I’d like to share with you a couple of life lessons I have learned from trading.

1- Being wrong is ok

We’ve been taught since we were kids that being right is good and being wrong is bad. It makes it very difficult for us to admit when we are wrong.

In trading, we are wrong very often. In fact, even the best traders out there are wrong between 40% to 60% of the time.

If you can’t keep your ego in check and admit quickly when you are wrong, you’re almost sure to lose all the money you have invested in the markets at some point. There is almost no way that you will make it as a trader unless you change your perspective on being wrong. Being right or wrong is just information, a feedback you use to adjust your actions. When you are wrong, the only thing to do is to stop being wrong by taking the right action.

2- Don’t dwell on missing an opportunity

What is fantastic with trading, is that, just like in real life, there is an endless stream of great opportunities that come our way. We just have to learn how to spot them. Just like trains, if you miss one, just get ready for the next one.

3- You are 100% responsible for your results

In the market despite having no influence whatsoever on the market, we are 100% responsible for our long-term results. The only way to be able to succeed in an environment you can’t control is to focus exclusively on the few variables you actually have control over. In life, despite not being able to choose where we come from, we have the power to take control of our destiny. We have to focus on what we can impact, what we can change. Blaming something or someone or the past is a complete waste of your precious time.

4- Listening to the media often is a waste of time

Before trading, I was a complete sucker for the news and social media. In order to improve my trading, I had no choice but to tune out the media noise in order not to be negatively influenced into deviating from my strategy and trading plan.

This made me realize that nothing bad actually happened to me since I stopped watching the news. In fact, my life got much better since then. Media are just money-making machines designed to make us become addicted.

5- What you focus on determines your results

Trading is one of the few endeavors where you have almost no boundaries. You are on your own and what you focus on becomes of utmost importance. I really discovered the importance of focus with trading. What you focus on in trading will literally determine your results.

If you focus on being right, you’ll probably lose a lot.

Focus too much on your recent winnings, and you will be prone to overconfidence.

Focus too much on your recent losses, and you will be scared of taking the next entry signal and more likely to change strategy.

Focus exclusively on trading while forgetting to analyze your past trades and results, and you will likely repeat the same mistakes over and over again.

Focus on listening to others, the news, social media, and you will be influenced by external opinions and prone to disregard your own rules or take trades outside of your strategy.

Focus on the money and it will be much harder to actually make money.

Focus on the process and positive expectancy, and money will follow.

6- I don’t have to be a slave to my thoughts

Trading made me discover that I had the power not to be a slave to my thoughts. By observing myself and the thoughts that cross my mind, I have more control over whether to act or not on those thoughts. This allows me to be calmer in stressful situations, where money is on the line for instance, and act in a more rational manner than I would have if I’d let my thoughts and emotional reactions take over.

7- You have to do things others won’t do in order to get things others don’t have

When we start trading, we are inclined to do what everybody is doing. We learn the same things as everybody else, read the same books, study the same chart patterns, the same indicators, listen to anyone who has an opinion, repeat the same mistakes over and over…

But since it is a well-known fact that 90% of traders fail, how can we hope to get different results by doing what the majority does?

In trading, just like in life, we have to think differently and do what others don’t in order to get what other people wish they had.

To be successful, you must be willing to do the things today others won’t do in order to have the things tomorrow others won’t have” – Les Brown

From my own experience, I discovered that most traders do not do thorough post-analysis of their trades and trading results. The overwhelming majority of new traders prefer very short time frames. They give too much importance to the outcome of a single trade. They focus exclusively on finding a way to have a high win rate, often to the detriment of risk/reward. They watch the news and get their trading ideas from others…

8- You can succeed at anything you want

Being able to beat the odds and become consistently profitable taught me that with patience, effort, drive, persistence, confidence and adaptability, they are very few things we can’t accomplish. With those qualities, that, fortunately, anyone can develop, you can almost be anything you want to be. Since I became a trader and discovered the limitless potential we all have in us, I developed my dream relationship with the woman I love, I became fluent in 3 languages, I became a bookworm, I launched a blog, I wrote an eBook, I traveled to many countries, … You just to have to decide on the few things you really want to accomplish and put all your focus and efforts toward those goals.

The original post appears on lonestocktrader.com and is available here


Reblog: A Trading Career – The Path To Profitable Trading And When To Make Money


Today I want to talk about a topic that could turn a lot of losing traders into profitable and professional traders. In our pro forum, I keep coming back to this topic quite often because I know about the importance and in the pro area, we have now seen many times that traders who follow this way of thinking, have a better chance of becoming profitable.

Learning vs. making money

I completely understand that this will be a tough pill to swallow but I always think that being honest and having realistic expectations is a key to trading success.

In trading, there is a time to make money and there is a time to study and work on yourself. When you are just starting out, you should not focus on making money and you have to completely detach yourself from the belief that you’ll earn a great living anytime soon.

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Reblog: 3 Valuable Trading Psychology Tips From Our Loss In $SQQQ


The mind of a trader

Knowledge has to be improved, challenged, and increased constantly, or it vanishes – Peter Drucker

We couldn’t agree more, especially in the business of stock trading; the more you learn, the more you earn.

As such, much of the knowledge we share on this blog focuses on recapping technical chart patterns of past stock and ETF trades that led to successful, profitable outcomes.

However, equally priceless lessons can be learned by walking through losing trades that did not work as expected.

In this article, we share three insightful, psychological tips (or reminders for experienced traders) from our recent losing swing trade in $SQQQ.

Grab your notebook and continue reading to improve your success as an equities trader…

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Reblog: Trading Limits – You Have to Start Thinking about the money


trading limits

Good traders are known to be masters of risk management. Risk management includes following a detailed trading plan, setting stop and limit orders and managing traders without succumbing to emotions.

Good traders also tend to follow a robust trading plan that focuses more on ensuring that the traders do not lose their capital, while the profits are seen as only secondary. As part of this pursuit in achieving trading excellence, professional and seasoned traders follow the concept of setting limits on their losses, on a daily, weekly and even monthly basis.

Trading with limits ensures that the traders do not end up sabotaging themselves in the heat of the moment as emotions can often override logic when a trade turns into a loss.

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Reblog: 20 Reasons Why 90% of New Traders Don’t Make It


  1. They risk too much to try to make so little.
  2. They trade with the probabilities against them.
  3. They think trading is easy money.
  4. Instead of focusing on learning how to trade they focus on getting rich.
  5. They blow up due to improper position sizing.
  6. With no understanding of the mathematical risk of ruin they are doomed after the first long string of losing trades.
  7. Blindly following a guru that leads them down the road of destruction.
  8. They don’t do their homework.
  9. They trade opinions not robust systems.
  10. They go looking for ‘trades’ instead of a methodology.
  11. They have no trading plan.
  12. They attempt to piggy back on the trades another trader but don’t understand the risks.
  13. Most new traders quit when they realized how much work is involved in trading successfully.
  14. Most traders quit when they learn how many losing trades they will have to have to get to the winners.
  15. New traders quit if they do not have a passion for trading itself.
  16. Many new traders will give up the moment they realize that trading does not have guaranteed income, you are an entrepreneur.
  17. They are not willing to pay the tuition to learn to trade in time, study, and losing trades.
  18. They are crushed by the learning curve that they do not work hard enough to get through.
  19. We lose a lot of new traders when they realize that trading is actually harder than their job.
  20. The traders that don’t make it quit when they were tired, frustrated, and stressed out, the winning traders quit after they had figured trading out.

The original article appears on newtraderu.com and is penned by Steve Burns. It can be accessed here.


Reblog: How To Be A Grown Up Trader


I do not think traders start making money until they mature and understand the big picture. I have been on this journey myself and went through the wild excitement of the internet bubble, day trading and the experience of making a few hundred dollars in a few minutes the first time and the delusion of the get rich quit trading scheme and the expectations of doubling or tripling an account within a year. The game of trading has large amounts of money flowing through the markets that we want to capture for our accounts and can give rise to emotions that make us act immature through the delusion of ignorance, ego, and greed. We can easily become unrealistic and go down the wrong road, it is crucial for success that we stay on the right road.

1. Quit believing all the riches of people promising that you will be rich if you just sign up for their newsletter, seminar, or join their premium service. Look for realistic resources to learn from. The more hype the more the probability of a service being a scam.

2. Quit thinking you are going to double or triple your account in less than a year, even if you do that just means in almost all situations you are taking on too much risk. If you can achieve a 20%-25% annual return then you are among the best traders in the world, these are close to the annual returns of legends like George Soros, Warren Buffet, and Paul Tudor Jones.

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Reblog: 25 Powerful Trading Lessons From Jesse Livermore


jesse livermore

Born in 1877, Jesse Livermore is possibly the most famous trader in history.

He started trading at the age of 14 from bucket shops. His tape reading skill was so good that these bucket shops eventually didn’t want to do business with him.

At his peak in 1929, he was worth $100 million. Ultimately, he lost his entire fortune when he broke his trading rules.

The same trading rules which made him millions, caused him to lose everything when he lost control of himself.

Still, there are valuable lessons to be learned from Jesse Livermore’s trading experience.

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Reblog: Do NOT Look For a Trading Strategy That Suits Your Personality


What Feels Comfortable and Natural Usually Doesn’t Work

Why do almost all speculator lose money? They lose because successful speculation requires that we consistently do that which is psychologically uncomfortable and unnatural” – Richard Weissman

There is a persistent overall tendency for equity to flow from the many to the few. In the long run, the majority loses. The implication for the trader is that to win, you have to act like the minority. If you bring normal habits and tendencies to trading, you’ll gravitate toward the majority and inevitably lose” – William Eckhardt

Most of what we naturally do and think do not work in trading. Here are a couple of examples:

  • We are naturally inclined to cut our winners short and let our winners run

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Reblog: Why You Should Take the Profits and Run!


This article is for those traders (new or experienced) who have trouble booking profits. Do you often see large profits evaporate as the market reverses against you, leaving you feeling powerless and confused? If so, you know how frustrating it can be and you know exactly what I’m talking about.

Poor target placement, lack of experience, greed, arrogance and stubbornness are all issues that can cause traders to not take profits off the table.

I appreciate this article may conflict with some of my core beliefs and teachings on taking profits since typically I encourage people to aim for a 2 to 1 risk reward or greater and to set and forget stops and targets. In theory, this makes sense, but in the real world, as you likely already know, there are still a great number of trades that almost hit your profit target or where a trade has moved quickly in the right direction and you’re staring at a giant profit… and then the next day or week, the market goes the other way and your once giant profit has become a much smaller profit or even a loss.

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Reblog: When Should You Move a Stop Loss to Breakeven?


forex breakeven stop loss

This week’s question comes from John, who asks:

When should a trader move a stop loss order to breakeven?

This is one of the more common questions among Forex traders. It’s also one of the most challenging to answer because it depends on several variables.

And it makes sense that it’s a common dilemma. After all, who doesn’t want to be in a risk-free trade?

But believe it or not, moving a stop loss too soon can be more harmful than taking a full loss.

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