The Final Stage of Trading

Trading Records

  I had previously discussed in an earlier post that you should not view trading as a single act but as a process with a number of broadly successive steps. What’s the final step in this process? The final step in this process does not occur when you close the trade or allow it to expire and take your profits (if any). No, it’s when you keep a good record of your trade. Because only if you do this will you be able to learn from the trade and fully accept the outcome.   Learning from Experience Most authors appear … Continue reading

4 Costly Trading Emotions

  There are four psychological states of emotions that can affect decision making when trading. They are greed, fear, hope and regret. You must always make your decisions on your interpretation of the facts. You interpret what is, not what you want to be. The market neither knows or cares about your feelings. So they are not relevant facts. If you allow these emotions to overly affect your decisions then your trading will suffer. But you cannot turn off your feelings, and you should not try.  So, what’s a trader to do?   Greed Greed is commonly thought of as … Continue reading

Some Things are Predictable

Greece and the Eurozone

At the time of writing, it would appear that the EU and Greece have patched together some sort of a deal to keep the Greek economy afloat. No real surprise there. It’s a classic EU fudge of course and obviously temporary, but it allows both sides to back away without obviously backing down. We’ll be here again, no doubt about that. The problem of course is that Greece is unable to operate as a member of the Euro. It’s not the only member with difficulties of course, but it does appear to be the only one with no real chance … Continue reading