The Tale Of Two Traders

Ned is an off-the-floor trader who day trades the S& P 500 Futures. He's been trying to be consistently successful for the last six months. Unfortunately, it hasn't worked out very well. But it's not because of his methods that he's having so much trouble. No, the main reason Ned is not making the kind of money he wants is because he cannot control his emotions and consistently act in his own best interest. From the very beginning, Ned was confident he would be...

Flawless Execution

Many people get confused and think that flawless execution means always selling near the high and buying near the low. It doesn't mean that at all. No, in fact I think it will be very rare in almost all of your trades for you to buy near the low and sell near the high. You don't need to buy the low and sell the high to make money in this business. What flawless execution means is acting on an opportunity (either getting in or out of a trade) the moment you see that it's an opportunity without...

Being An Active Winner And Loser

Some people believe trading is like gambling. It's not. In a gambling game, you have to participate to lose and do absolutely nothing to stop losing. If, after one bet, you don't put another bet on the table, you will not lose. There is also no way you'll win. But, at that point if you don't place another bet , there will be no risk. Obviously, in trading it's very different. You must participate to get in a trade, and you must participate in other words do something to cut your losses. If you...