The seventh commandment of profitable trading is to write your plan. You wouldn't go headlong into a business without any plan at all. You would have to have a business plan about what you would do, how you would make money, what your processes would be, and what your...
The sixth commandment of profitable trading is to reduce your risk. If you think you should be risking this much, you probably should be risking that much. The ideal amount to risk on a trade is usually far less than you think because unforeseen events happen. Crazy...
The biggest mistake people make is they think about making money. That sounds counterintuitive, but if you think about how much money you will make as opposed to how much you could lose if you are wrong, you get two very different outcomes. If you start by thinking...
The fourth commandment of profitable trading is you've got to have a positive edge or a positive expectancy in trading. If you apply your strategy repeatedly, do you get a positive expectation of making a profit? And I want to know if I test my strategy over the last...
The third commandment of profitable trading is to use an approach that suits you. If you're a very patient, long-term considered person, you want a long-term strategy. A long-term strategy is a trading strategy where you buy and you wait through the big major trend,...
The second commandment of profitable trading is to use a system. Most people approach the markets the way they approach everything else. They think “I'm pretty smart. I've got some experience. I'll bring that experience to bear, and I'll make some sensible decisions,...
The first commandment of profitable trading is you've got to learn the language. If you want to go into a foreign country and function effectively, you need to know the language or translate. In trading, most people come into the markets and think “I'm a smart person....
There are a couple of reasons why stock trading is hard. First, most people zoom in way too much. They're looking at five-minute or at one-day charts; and watch social media when Bitcoin jumps six or 7% in a day up. It's like, "oh, it's over, quick, buy before you...
There's a spectrum on every investing. On one end, the big Wall Street funds have huge supercomputers and trade ultra-high frequency thousands of times a day. On the other end, you are buying a good stock and holding it forever. And in between, there's a whole bunch...
Let me demonstrate the correct way versus the wrong way. Let's say I've got specific rules which might be a bit technical but doable. One thing we do in technical trading is moving averages which is you take the price today, yesterday and the day before, you add them...