Gambling VS Trading
It's funny how in the Mainland U.S., there are ads that run "Win a trip to Hawaii!!" and the question that I've been asked before is: "if people win trips to Hawaii, where do Hawaii people win trips to?" Well, that answer is Vegas, baby! - The unofficial "9th island". And what else do locals find themselves doing? Gambling..in hopes to win thousands of dollars off luck.
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Now, we aren't saying you won't make money off luck. We also aren't saying there's no such thing as professional gamblers. However, if you ask these professionals if they are gambling, their answer without a doubt would be no...they have an edge.
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A few key points that make a difference between gambling and trading is having an edge. This edge can come in a variety of ways: experience, edge, risk, time in the markets. But, to keep it simple an edge is something that can be proven to have a success rate through probabilities. Probabilities is one thing more likely happening than another. Professional t...
6 Trading Truths
6 Trading Truths all traders should become aware of!
1) TREAT TRADING LIKE A BUSINESS
2) FOCUS ON THE LONG GAME
3) FIND YOUR EDGE
4) KEEP YOUR MENTAL CAPITAL FULL
5) DON'T TRADE WITH CAPITAL YOU CAN'T AFFORD TO LOSE.
6) PSYCHOLOGY, MONEY MANAGEMENT, STRATEGY.
Trading isn't just about picking placing trades and watching charts; it's a whole lot more. It's like a game where the rules are a bit fuzzy, and the playing field keeps changing. But here's the good news: there are some solid pieces of advice that can help you get better at it. Whether you're just dipping your toes in or you've been at it for years, here are 6 tips to upping your trading game. So, let's dive in it!
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1. Treat Trading Like a Business
If you are taking trading serious, you're going to want to start taking trading serious. This means having a game plan that spells out what you want to achieve, how youâll manage risks, and keeping track of all your moves - win...
8 Common Trading Mistakes
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The most challenging part of trading comes down to a disciplined mindset. Here is a list of 8 common mistakes traders may experience and ways to thwart a few misconceptions:Â Â
1) GET RICH QUICK
 Whatever market, trading is NOT a get-rich-quick tool. The market is abundant and money will come, in time. But, going in with a money reward standard for each trading session will not only make you susceptible to blowing an account but extend the timeline before you are consistent. Understand that this is a game of patience and subscribing to a âsignal serviceâ will not bring you financial independence.Â
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2) STICK WITH ONEÂ
Subscribing to multiple methods may disrupt a traders frame of thought. If the current system isnât working out, blaming the course and jumping onto a new course is the seed of deceit. Re-learning a course will take longer and can be a hindrance to a traderâs career. Instead, stick with one trading system that has a good track record, r...
Trading Drawdown
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All traders understand that a loss is unavoidable. Taking two losses back-to-back is likely. After three losses in a row, especially on the same pair, a trader generally has two paths to take:
Option A) Take a step back from trading, preserve capital, and wait for the market to show a better sign correlated to your trading plan or,
Option B) Continue to force trades (this is FOMO/GREED/EGO driven decisions) which can quickly turn into three or more consecutive losses, ultimately leading to double-digit losses.
Without a doubt, we want to be the trader that chooses the divine path of Option A but at one point or another, you will find yourself in a drawdown that not only brings you to question the strategy or trading plan, but yourself included â âam I meant to trade?â âMaybe trading isnât for me?â. No worries, because you are NOT alone: ALL TRADERS HAVE ALREADY OVERCOME, OR WILL EXPERIENCE DRAWDOWN at some point in their trading career.
First off, What i...
10 Tips To Become A Profitable Trader
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There are many tips all across the internet that can be broken into subcategories in their own merit. However, these are the top ten things any trader should stick to when it comes to trading.Â
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HAVE A PLAN â List ground rules of how you plan to trade. Plans can be created through various online sources that resonate with you or by adapting to an already established plan. A standard method should at least include: when to enter and exit a trade, management of a trade and risk allocation. Donât place a trade without reason â otherwise, youâre gambling!
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STICK TO YOUR PLAN â Donât throw out your plan because your friend that just got into trading had one month of successful results. At this point you already established a successful trading plan, now stick with it! Altering your stop losses, increasing risk size, or altering your management can be detrimental to your overall journey. Stick to your plan!
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DONâT STRESS â Once you have a concrete strategy that ...
Importance of Backtesting - What Is Backtesting?
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The importance of Backtesting your trades could not be more paramount in your trading career. Apart from having a solid mindset, you need a solid strategy. Your strategy is only valid if it has been time-tested, meaning it can work across all market conditions over the years.
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What is backtesting?
Backtesting is the process of testing a trading strategy or system using historical data to see how it would have performed in the past.Â
It is an important step in developing and evaluating a trading strategy, as it allows traders to see how their strategy would have performed under different market conditions and to identify any potential issues or areas for improvement.
There are several benefits to backtesting a trading strategy.
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Firstly, backtesting allows traders to evaluate the robustness of their strategy, by determining its performance over a large sample of historical data. This can help traders to identify patterns or trends th...
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.
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 consistency in th...
Resiliency Over Luck: The Trader's Advantage
those who thrive from those who merely survive. Consider two scenarios: one, where an individual wins the lottery, and another, where someone builds their success as an entrepreneur. The former relies on chance, while the latter embraces resilienceâa trait that can withstand and recover quickly from difficulties.Entrepreneurship Resilience: A Skill to be DevelopedIn the world of 9-to-5 jobs, winning the lottery might seem like the ultimate stroke of luck. However, entrepreneurs understand that creating their opportunities is far more empowering than relying on chance. They make their \"lottery\" and print success at will. The study of Powerball winners sheds light on the divergent paths these two individuals take: a 9-to-5 worker might spend a $1,500 windfall, but an entrepreneur will use it to make that sum grow.The Curse of the Lottery vs. Long-Term Wealth of Entrepreneurs:The stories of lottery winners facing tragic outcomes are unfortunately common. Yet, research by Cesarini and hi...
Trade60 - Building Good Trading Habits
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Trade60: The Ultimate 2024 Challenge for Trading Success
Are you ready to take your trading game to the next level in 2024? Trade60 is the challenge you've been waiting for! Over the course of 60 days, you'll develop the essential habits of successful traders and build a strong foundation for long-term success.
The Four Pillars of Trade60:
1. Hydration - Fueling Your Success:
Trade60 Rule: Drink a minimum of half a gallon of water daily (64 ounces).
Importance to Trading: Staying hydrated is not only crucial for overall health but also impacts cognitive function. As a trader, mental sharpness is key, and dehydration can impair decision-making abilities. By prioritizing hydration, you ensure that your mind is in its optimal state for analyzing markets and making strategic trades.
2. Movement - Energize Your Body:
Trade60 Rule: Engage in at least 45 minutes of movement daily (a workout or a walk).
Importance to Trading: Physical activity has been linked ...
Setting 2024 Goals
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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 wit...
