Reading as much as we can about trading always helps us to improve and become better traders. I'm pleased to share some of the best trading articles, podcasts and videos from some of my favorite traders, bloggers and educators. If you came across an interesting article please share it in the comments section.
Trading is a difficult endeavor. It takes experience and a sound process to help you understand when to get into a trade. And when to get out of a trade. But perhaps even more important is the mental discipline it takes to follow your experience (gut) and process. Here are some great insights from Steve Burns.
People desperately want to make money in the stock market with little or no risk. Unfortunately this is just not possible. If you want big returns, you need to be prepared for big drawdowns along the way. For example, Warren Buffett’s Berkshire Hathaway lost over 50% from June 1998 to March 2000.
I often refer to selecting a proper position size as the easiest and most important risk-management technique for the individual trader. It is always tempting to trade bigger size, especially when confident. Big size can produce big profits. Traders believe that earning bigger profits is the path to wealth.
Reading as much as we can about trading always helps us to improve and become better traders. I'm pleased to share some of the best trading articles, podcasts and videos from some of my favorite traders, bloggers and educators. If you came across an interesting article please share it in the comments section.
The Sharpe Ratio is a measure for calculating risk-adjusted return, and this ratio has become the industry standard for such calculations. It was developed by Nobel laureate William F. Sharpe. The Sharpe Ratio is the annualized return of an investment earned in excess of the risk free rate divided by the investment's annualized volatility.
There are a lot of myths and misconceptions about options trading. Many traders refrain from trading options because they consider it too risky. The only dangerous part of options trading is the risk-insensitive trader who buys and sells options with little or no understanding of just what can go wrong.
Whenever we talk about stock market trading discipline, everyone seems to understand that we are referring to trade decisions. We know that good discipline is required to pull the trigger and exit a trade with a loss. It really should not be difficult. After all, we know our position has not been working and is not likely to get better any time soon.
Reading as much as we can about trading always helps us to improve and become better traders. I'm pleased to share some of the best trading articles, podcasts and videos from some of my favorite traders, bloggers and educators. If you came across an interesting article please share it in the comments section.
For most option traders their first encounter with options was probably Covered Calls. Covered Calls are easy to understand, seem to have very little risk and convey the feeling of being more than just a “plain investor”. They are still the most popular option strategy.
The future and markets are unpredictable. When asked on CNBC to make any predictions or forecasts about the future or the markets, the ONLY correct answer is: I DON'T KNOW. Of course nobody has the courage to say those three words on CNBC or other financial media, otherwise they would never be invited back.
"Since the beginning of the financial markets, trading has undergone constant changes. High frequency trading, rigged markets, unexpected news and insider trading makes profitable trading impossible for the regular trader. But is that really true, and is trading becoming harder and harder these days?"
