Setting Goals, You Can Achieve: A Framework
Crafting a Resilient Path: Insights from Episodes 58 and 59
As we usher in the end of the year, our recent podcast episodes have delved deep into the art of setting and achieving goals, providing a roadmap for those seeking purpose and intention as they navigate the journey ahead. In this blog post, we'll explore the highlights from Episodes 58 and 59, which focus on trading through the holidays and culminate in a powerful discussion on ending the year with goals and intentions.
Episode 58: Trading Through the Holidays - Missing Out on 1.28%
In Episode 58, we examined the impact of trading through the holiday season, specifically addressing the consequences of missing out on a 1.28% gain. The discussion set the stage for a profound exploration of tackling goals logically, prompting Reid to pose a crucial question to Glenn: How does one go about it?
Framework of Setting Goals: Episode 59 - Ending the Year with Goals and Intentions (Part 2)
1. Set Goals with a ...
Process OVER Profits - becoming a successful trader
Emphasizing Process Over Profits: A Deeper Dive into Mitigating Emotional Trading Errors
In the intricate world of trading, the quest for financial success is a driving force for many. However, this pursuit can become a double-edged sword when the fixation on monetary gains overshadows the fundamental principles of disciplined and strategic trading. This expanded exploration delves into why a profit-centric mindset leads to emotional errors and how a steadfast commitment to process-oriented trading is the cornerstone of long-term success in the financial markets.
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The Psychological Trap of Profit-Centric Trading
The allure of quick profits in trading can ensnare even the most rational minds into a web of emotional decision-making. This section further examines the psychological dynamics at play when traders prioritize profits over process.
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The Emotional Rollercoaster: Trading, by its nature, is fraught with uncertainty and risk. A focus on potential financial rewa...
Positive Expectancy: Finding Your Trading Edge
Positive Expectancy:Â Finding your edge - taking X amount of trades to get profit and refining.
Definition: the state of thinking or hoping that something, especially something pleasant, will happen or be the case.
What does it really mean though? When traders first get into the market, their expectation is far more unrealistic than they really sound like.
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Unrealistic expectation:
- Wishful thinking, head in the clouds when first learning about trading and how much money you can make.
- Starting to count your eggs before the chicken lays them. 2% every day. Thinking the market will do what you want it to do. Profitable from day one.
- Never losing.
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Realistic expectation:
- Not profitable for the first year or so.
- Losing money.
- Stress.
- Frustration.
- Ego Deflation.
- Thoughts of quitting.Â
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Coming back to Positive Expectancy, Where does this play a role in trading? What does positive e...
How To Handle Trading Losing Streaks
Every trader goes through it - From the most elite hedge fund trader to the trader in their first month, a string of losses or back-to-back, consecutive losses will occur...it is all but inevitable.
However, when we experience a string of losses there are a few actions we take that may sound practical to do but not regularly practiced with new traders. And that's the point to whomever is reading this - we all take similar actions to overcome the mental strain of trading losses.
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Here are 10 tips for traders dealing with losses:
1) Step away from the markets.
- Take a breather. Take a walk in nature. Go to the gym. Get your body moving and away from the markets. Step into a different frame of mind. Let this be a part of your trading plan. If you take a considerate number of losses, then take a break away from the charts.
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2) Replace emotions with quantified data.
- Detach your emotion from decision making. The way we do that is instead of...
What Are The Trading Hours in Hawai'i?
Trading Hours In Hawai'i
When most people talk about trading, they are often limited in with the idea that we can only trade the Stock market. The most common trading times associated with Hawai'i traders is waking up 3am to trade the 330am open. Additionally, despite Hawai'i having no daylight savings period, if we are trading the markets, daylight savings will affect the hours of when we trade.
For clarification:
Nov 3 - March 10: Backward 1-hour.
Trading Hours in Hawaii During Daylight Savings Time
The NYSE (New York Stock Exchange) operates from 9:30 AM to 4:00 PM Eastern Time (ET). Hawai'i is six hours behind New York. Therefore, for trader's in Hawai'i, the market opens at 3:30 AM and closes at 10:00 AM local time.
March 10 - Nov 3: Forward 1-hour.
Trading Hours in Hawaii Outside of Daylight Savings Time
Outside of DST, the time difference between New York and Hawaii shifts to five hours.
Therefore, for trader's in Hawai'i, the mark...
Knowing When To Stay Out Of The Market
Trades wonât always be available: knowing when to stay out of the market.Â
EDGE: Sometimes there isnât anything on watch, other times you can have 10 tickers on your watchlist but enter none because it doesnât fit your edge. Your Edge. The market isnât going to go the way YOU want it. You just need to sit back and trade your plan.
PSY: We have to make clear decisions based on our current mindset, trading capital and mental capital. Am I in a current drawdown or winning streak?Â
RISK: sitting on your hands can save you money. Making small shifts like using limit orders instead of market orders.
Sense of intuition when making decisions. This can happen for a small percentage of trades. For example, I was in a trade and saw that price action was forming a âtopâ. I took my profits and exited positions. The next morning, the price dropped. I canât say it was a complete win and followed my rules. It comes with experience and time. Itâs like that gut feeling.
 In...
Trading Reality vs. Trading Fantasy
Overnight success, fancy cars, expensive watches, and an overall care-free easy-going mind, and fast paced lifestyle...welcome to the world of trading. Well, Fantasy trading that is. In reality, trading the same way, year after year gets a little redundant and quite honestly, boring, but boring works.
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At Hawai'i Trading Academy you won't find any of that shenanigan here. Instead, you find a reasonable approach as we adhere to principles of Risk, Edge, and Psychology. AKA - REPs for short. A saying you'll hear in the gym that aptly fits our style of education is "Put in the REPS!" - focusing on HTA REPS will streamline your success in the markets.
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Systematic Trading: The Grounded Reality
Risk Management
At the heart of systematic trading lies the unwavering focus on risk management. This approach doesn't just acknowledge the inevitability of losses; it plans for them. By employing a disciplined risk management strategy, traders can ensure their survival in the mark...
Think Like The 5% - Market & Mindset Consistency
In the realm of trading, a stark statistic often captures the attention of newcomers and veterans alike: 90 to 95% of traders fail. This figure, while daunting, shifts the focus onto a critical question that most in the trading community overlook. Instead of dwelling on why the vast majority fail, a more productive inquiry is to explore what the successful 5% do differently. Their secret? Consistency. But not just any form of consistencyâthere are two distinct types that set them apart: the consistency in action, particularly in journaling and documenting trades, and the consistency in mindset towards trading itself.
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Defining Success and Consistency in Trading
Success in trading doesn't necessarily equate to winning every month. Instead, it means sustaining the energy to improve daily, becoming an elite performer through an unwavering willingness to learn. This perspective requires us not to belittle another's success or to underscore the challenges of achieving consistenc...
Strategic Trading in Hawaii: Leverage Time Zones
Trading from the serene Hawaiian Islands might seem like a dream away from the hustle of Wall Street, but it's a reality that offers unique strategic advantages. Whether you're delving into forex, cryptocurrencies, stocks, or futures, Hawaii's time zone provides a distinctive edge. This guide will walk you through optimizing your trading strategy from the islands, debunking myths, and setting you up for success.
Dispelling the Myths of Trading in Hawaii
Many assume that Hawaii's geographical isolation translates to a trading disadvantage due to time differences with major financial hubs. However, this myth overlooks the strategic benefits:
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Time Zone Advantage: Hawaii's time zone allows traders to engage with different market sessions effortlessly, from the Asian markets in the evening to the American markets in the early morning.
1. Understanding and Utilizing Market Hours
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Forex Market Hours in HST:
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Sydney Session: 11:00 AM - 8:00 PM
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Tokyo Sessi...
Finding Focus in Trading
Finding Focus in a Distracted World: A Trader's Guide to Mastering the Markets
In the fast-paced and often chaotic world of trading, the ability to maintain focus is a crucial skill that can make the difference between success and failure. With constant market fluctuations, news updates, and the allure of quick gains, distractions are everywhere. However, mastering the art of focus can help traders navigate these challenges and achieve their financial goals. This guide explores practical strategies to cultivate focus and enhance productivity in trading.
Understanding Focus in Trading
Focus in trading is the capacity to concentrate mental energy and attention on market analysis, decision-making, and execution without getting sidetracked by distractions. It's about honing in on critical data, filtering out noise, and making well-informed decisions based on sound analysis. In essence, focus is the trader's tool for staying disciplined, minimizing errors, and capitalizing on marke...
