Trader Mindset

Subscribe to the show   Stop orders are like your personal sentries that do nothing but add and remove risk from your portfolio.   Click here to get your free copy of The Inner Voice of Trading audiobook .

Subscribe to the show Go to school on yourself and learn from your mistakes. You'll be your own best teacher. Click here to get your free copy of The Inner Voice of Trading audiobook .

Subscribe to the show   Running your screens and having your orders ready the night before stops you from getting sucked into FOMO trades and shooting from the hip.   Click here to get your free copy of The Inner Voice of Trading audiobook .

Subscribe to the show All you need to do is fund your account and manage the risk.   Keep it simple and enter your protective stops.   Click here to get your free copy of The Inner Voice of Trading audiobook .

Subscribe to the show   Bullish chart patterns show crowd behavior, but they can easily disappoint you.   This is where that saying "intuition becomes into-wishing" might come into play.   Click here to get your free copy of The Inner Voice of Trading audiobook .

Subscribe to the show   ...your position is probably too big.   Learn how to trim the hedges along the way so that any particular earnings announcement is irrelevant.   Click here to get your free copy of The Inner Voice of Trading audiobook .

Subscribe to the show   You can fantasize about how much your account balance can explode if you get lucky.   However, margin cuts both ways and you can get blasted more times than not.   Protect your capital and play superior defense.   Treat every trade as serious business.   You can learn to do great things and grow your funds systematically.   Click here to get your free copy of The Inner Voic...

Subscribe to the show   One bad earnings report can impact several of the other names you own.   Trade your equity curve and cut your position sizes if vol increases.   Click here to get your free copy of The Inner Voice of Trading audiobook .

Subscribe to the show   Making a big bet before an earnings announcement is a gamble.   You can't infer what the company is going to report because "you see something" in the chart pattern.   Here are my thoughts.   Click here to get your free copy of The Inner Voice of Trading audiobook .

Subscribe to the show   This might be too "inside baseball" for some, but you can study the simulated backtest of a model and use the insights gained to go back and adjust your rules.   You can segment the winning trades from the losing trades and study both outcomes to improve your entries, bet size, and exits.   By doing so, you might be able to improve either your winning percentage or the expe...

Subscribe to the show   Trading systems have different accuracy rates and ratios between winners and losers.   Knowing these ahead of time might better help you determine which is most suitable for you - at least to start with.   A trend following model might have 30% winning percentage with winners being 3 times the size of the losers.   A chart reading model might have a 70% winning percentage,...

Subscribe to the show   Your data feed might only include what we call normal trading hours or "outcry only."   For some of you, it might make sense to analyze what happens in pre-market and after-market activity.   You may be able to define a small edge to either improve your entries or exits.   For your exits, you might be able to effect a trade in the pre- or after-market to improve your price...

Subscribe to the show   Most system traders can screen for tickers by price, volume, and volatility. You can also add some overlays if you want and test those parameters also.   Here are a few thoughts on running screens.   Be mindful to find the data on the securities that don't trade anymore and add that data into your overall data to screen.   Else, you'll only be looking at survivors and it wo...

Subscribe to the show   Most system traders do not just increase their bet size on a whim.   Many have their risk systematized to be a fixed percentage of their overall equity conjugated with the volatility of the instrument.   They increase their risk systematically and only trade larger when their capital base grows due to gains or from adding capital to their account.   Chart readers can do the...

Subscribe to the show   In this episode I recall how I got stopped on CSCO for a loss and why that was a great trade.   Click here to get your free copy of The Inner Voice of Trading audiobook .

Subscribe to the show   If someone you know is bearish and they're not short, they're full of it and probably like to hear themselves talk.   Do them a favor and call them on their nonsense.    Ask them where their stop orders to enter the market are.   I find this happens with people who are looking for attention and trying to show you how smart they are.   What a snooze.    I don't care about op...

Subscribe to the show   Selling short on valuation at historic highs is a quick way to lose a great deal of capital fast.    Selling long on valuation is a quick way to incur staggering opportunity costs and missed opportunities.    Don't try to be smart - focus on making money.   Click here to get your free copy of The Inner Voice of Trading audiobook .

Subscribe to the show   Buying a pullback works in raging bull markets until it doesn't work anymore.   Is it a 2-stage pullback...or is it the end of the trend?   You don't want to be buying when the trend reverses.   Know what you're going to do beforehand.   Click here to get your free copy of The Inner Voice of Trading audiobook .

Subscribe to the show   It's easy to get blinded by our success when we're in boom times like we're in now.   If you get used to it, you can lose perspective and forget that sometimes what's around the corner is going to be more than just a short-term pullback.   In this episode, Michael Martin remembers what happened during previous boom times in his career for context.   Click here to get your f...

Subscribe to the show   You want to trade rules that are robust.   That will give you a better chance of surviving when the markets inevitably change.   Backtest your rules with a minimum of 10 years of historical data.   Click here to get your free copy of The Inner Voice of Trading audiobook

Subscribe to the show   I don't worry about trying to make realized gains each day.   It's not my goal to reinvent myself each day - I want the market to do the work for me.   Focus on process and the results will follow.   Click here to get your free copy of The Inner Voice of Trading audiobook

Subscribe to the show   Raise you hand if anyone from your clearing member has called you when you're in a protracted drawdown or are overtrading and they tell you to stop...   Click here to get your free copy of The Inner Voice of Trading audiobook

Subscribe to the show You can count on "the other guy" to do the wrong thing most of the time. Click here to get your free copy of The Inner Voice of Trading audiobook

Subscribe to the show   So let's say you get five signals. You don't know which one to take. Will you take all of them with the requisite amount of risk that you're willing to take, then you let the market activity unfold. The market will tell you which one's going to be the best one. You can count on it.   So if you're taking it home with you, you have your protective stops, whether you're tradin...

Subscribe to the show   Focusing on your process can keep you placated as we said yesterday.   It can also help you improve your attitude.   When you're not chasing your tail or going outside the boundaries of your trading rules, you're conserving a great deal of energy.   When you don't react, you develop of quiet sense of confidence about you.   It doesn't mean you're infallible, but you're in c...