Category: Trading Psychology
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R and R-multiples
R and R-Multiples R (aka R-value) and R-multiples is a concept developed by Dr. Van K. Tharp., the well-known professional trading coach who wrote several trading books such as “Trade Your Way to Financial Freedom” or “The Definitive Guide to Position Sizing”. So what are “R” and “R-multiples”? R or R-value is the initial risk…
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How I Shifted My Focus From Money to Trading
10 years ago, I lost a whopping $700k in the market. That was 70% of all the money I had at the time.The details are not that important, but it is something 99% of traders went through, or will go through: a mentally devastating loss. To add pain to injury, as you might have noticed,…
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Becoming A Great Trader – Start With Who
THE GAP Most traders who have been struggling for several years often already know what they should be doing in order to turn their trading around. – They know they should have a complete trading strategy – They know they should have well-defined money management rules – They know they should keep a detailed trading…
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How To Make Better Trading Decisions
Cognitive Biases We all have a tendency to think we are right most of the time, even when we are wrong. This is caused by what is known in psychology as “cognitive biases”, and it often results in bad trading decisions, which over time results in losing money. So what is a “cognitive bias”?…
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Do The Things You Don’t Want To Do
Are You Currently Struggling As a Trader? Are you currently, despite having some good trades, losing money overall? Don’t worry. You’re not alone. You’re actually in the vast majority. It is a well-known fact, backed by several studies that 80% to 90% of traders lose money consistently in the markets. Trading doesn’t escape the 20-80…
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Do NOT Look For a Trading Strategy That Suits Your Personality
Conventional wisdom often produces conventional results. There is a common advice given to new traders who are struggling to find a trading strategy: “Find a strategy that suits your personality” This is in my humble opinion a wild oversimplification and even an erroneous advice that confuses more than it helps. Let me make a bold…
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Trading & Being Grateful
Gratitude? What on earth does it have to do with trading? Well, what if I told you that being grateful can have a real positive impact on both your trading results and on your life? Being Grateful & Trading Two of the states of mind that cause us to make many mistakes in trading…
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Looking For The Best Trading Signals?
The most sought trading related information on the Internet is trading ideas/signals. People crave for trading ideas and trading signals. We’ve all looked around social media for trading ideas, followed “gurus” and subscribed to various services in order to find the best trading signals, the most reliable trades with an average win rates of 80%…
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Thinking in Probabilities
On the the greatest lesson I’ve learned, which literally took me several years to figure out, is to change my perspective and start thinking in probabilities – view trading as a probability game, as opposed to a game of certainty. “Trading effectively is about assessing probabilities, not certainties” – Yvan Byeajee Thinking of trading as…
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Stop Focusing On The Money
I think I can affirm quite confidently that we all started trading for the money. We all had this idea that unlike most regular jobs, trading is a way for us to reach the kind of monetary figure we’ve always dreamed of, and the freedom that comes with it. Then, we naturally keep on focusing…