Tag: psychology

 

Indecent proposal

I’m very much a student of human nature. That often leads me to conversations with people on all sorts of things. My story today is motivated by a few things this week. Firstly I had yet another brief conversation with a taxi driver. He took me from home to my local train station. I was on my way into London from where I’m writing this – in a hotel room. I’m working in London thisRead More

What’s a good stop-loss?

It’s a question that’s impossible to answer as it depends on several things – and each trade is different, as many things affect a particular instrument you’re trading. [An instrument is a stock (aka equity), commodity, forex, or whatever]. The really big and most important point of a stop-loss is to limit losses and limit risk. Being stopped-out and price fluctuaton: One of the biggest mistakes new traders make – and I still get thisRead More

Support and Resistance

Support and resistance are absolutely important concepts for all traders. Supporting what – and resisting what  – are the questions that most new traders ask in their own minds. The easiest way to imagine ‘support’ is by reference to physical analogies. Forget about charts and trading for a moment. Have you ever needed a loan from friend or family? If not just imagine it. A loan is a form of support. You don’t want yourRead More

How Technical Indicators can fail

Most noob traders get over excited about technical analysis. They spend much time working out how they work and trying them out. However, the story is the same for most experienced traders: they tend not to rely heavily on technical indicators; relying more on knowledge, skill and experience. No – that’s not intuition. That’s not guessing based on experience. It’s about gaining deeper insights into market psychology. The psychology of all punters in a shareRead More

The enemies–the fuller list

The list of enemies is probably the most important thing for all new traders. In other posts I’ve referred to ‘the enemies’ within. The fact of the matter is that the obstacles and failures in trading are due to the hidden enemies. These are enemies in the mind. Sometimes they’re not ‘so hidden’. Traders may be aware of them but unable to do anything about them. I don’t propose to give instructions on how toRead More