[Video] How Profitable Traders Develop a Winning Mindset
Trading psychology or mind games that shape your beliefs?
Once money and a trader’s ego are involved, all well laid plans are rendered mute…
Trust me, you are not the exception. We all have an inner voice that can help us or lead us to doubt what we see.
We must do our best to recognize when our self-talk is in control and swaying us from our perfectly designed trading plan.
I have yet to meet a trader who hasn’t canceled a stop-loss as it was about to get hit. The fear of exiting a losing trade or avoiding the ego bruise of “being wrong” makes us do strange things.
In spite of the grip these demons have on us, I have developed some solid techniques to wake myself up when I am making poor decisions.
How to Spot Order Flow Drawing “Old-School” Trend Lines
Trading and computers are best buddies these days, in some ways good, some ways not so good.
The ease of accessing any trading indicator imaginable is exciting but it removes you from the most important part of trading- price action.
Each day I create a game plan using two methods, a weekly chart with no indicators and a daily with multiple moving averages. The moving averages help but it’s easy to get lazy.
Today’s trading lesson demonstrates how to properly draw trend lines and spot order flow.
This is What Losing Trader’s Don’t Understand
Most traders struggle because they focus on profits…
Since 2000, I’ve had the opportunity to trade full-time, manage and teach thousands of professional traders across the world. One constant theme I see among losing traders is the need to be right on each trade.
In my coaching I hear “This trade in $XYZ didn’t make money. The idea matched my trading plan perfectly. What did I miss?” These traders don’t understand the business.
We spend months and years developing systems, an edge, but then we “eff” it up by looking for profits on each trade. A “system,” and “edge” literally means “over a large sample!!”
We mess it up focusing on the profitability of each trade. Focus on your discipline trade-by-trade, but focus on your results over time (or a large sample, such as 50 trades).
A side note, when you get to this point trading becomes stress free because you are trading your plan not the market.
Entry Signals: How Top Traders Keep it Simple
Sometimes the most powerful trading signals happen to be the simplest ones.
The inside candlestick falls into this category. Many of the top traders I know use this trigger as their only entry signal.
Yes, that’s right. Experienced traders are not using every indicator available, we keep it simple, so we can make definitive, confident decisions.
This mindset eliminates hesitation. If you see it, place the trade. No super computer or algorithm needed. Enjoy the video and feel free to drop a comment with your questions.
Scroll down to get a list of today’s (Friday 11-4-16) inside candlestick trade ideas.
Stocks to Trade 11-4-16 | Friday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: CAR, PRU
Negative last 20 and 5 trading days | closed 2% lower from the open: fslr, wynn, vrx, acia, clvs, apa, abc, cah, mck, agn, twlo, lulu, esrx, prgo, cvs, ntnx, amgn, hca, sm
Quarterly Order Flow:
Bullish Stocks to Trade: PRU, MET, EXPE, DE, PNC, DAL, NFLX, GS, MA, UAL, BA, VLO, AKAM,
Bearish Stocks to Trade: teva, acia, myl, acad, rh, abc, cah, mck, agn, twlo, prgo, cvs, ntnx, amgn, vtr, nlsn, ua, gpor, jci, tjx, cost, gild, lly, mcd, tsla, low, rrc, dva, lng, kmx,
2x Normal Volume: FB, TEVA, CTL, CF, FSLR, MYL, AIG, AGN, CVS, WYNN, APA, ABC, EA, CLR, CAR, CAH, PRGO, MCK, KHC
Inside days: csco, orcl, kr, nke, v, yum, jd, tck, gme, mdt, ctsh, hd, nflx, schw, nem, low, adm, cog, amzn, cat, rrc, etfc, bidu, de, ctrp, mbly
Trading Goals | Golden Rules for Success
After sixteen years in the prop trading world I have witnessed (or made) every trading mistake imaginable.
Easily the biggest mistake comes in the form of goal setting. We set trading goals by ignoring the learning curve. We give ourselves three to six months to master trading. Can we make money in that time period?
Yes, absolutely. But the reality for most of us- we need to learn how to not lose money first.
Only when we learn to minimize mistakes, and reduce the frequency of trading bad ideas, can we start to earn a consistent trading income.
This video is from our coaching program. Take plenty of notes.
If you have any questions, please feel free to drop them in the comments below.