Earlier this year I wrote an article titled Trading Math I- Don’t Let Statistics Fool You and received quite a bit of positive response from it. The article discussed the importance of keeping your losses small and letting your winners run. This week, I want to follow up with a brief introduction to risk and…
Who wants to be just an average trader? By definition, being average is doing what most other people do. Doing what other people do is only natural since investing is largely a psychological game. However, you cannot expect to do well in the market if you look at investing in a normal way. To beat the market,…
Stock traders go through several different phases in their quest to be a master of the market. One of the most difficult to master is to remove one’s emotions when trading. You can be a great stock picker, do well at managing risk, and still not succeed as a trader if you fail at emotional mastery. Mastering one’s emotions…
You cannot expect to do well in the market if you look at investing in a normal way. By definition, being average is doing what most other people do… since investing is largely a psychological game, doing what other people do is natural. Average results come from normal people acting in normal ways. To…