We have a dedicated Chief Broker by the name of Roberto is always very attentive. It is through your blog that I came to realize that short term time frames were not for me. The funny thing about Monaco is Monaco citizens note not residents — means two different things are not allowed to gamble. Watch Over My Shoulder And Learn, As I Teach You How I Trade! Many traders do this and it is basically like setting yourself up for a loss before the trade secoond starts. As the market evolves, new support and resistance levels are.
I was fortunate enough to attend and speak at TradersACause charity event in Las Vegas this month. My speech started with one of my favourite stories, let me share it with you here: In the middle ages there was a young man who was living in a mountain village. He was a perfectionist and was obsessed with being successful.
He wanted to be very very successful. People in the village tried to answer but none of the answers satisfied the young man. One of the elders in the village told him about a wise man who was living at the top of the mountain, in a cave, and he might be able to answer his question. However, he also warned him about the dangers of the journey. It would take several weeks and he would need to face wild animals and snow storms on the way up.
He immediately decided to go and find the wise man who could finally answer his question… The journey took several weeks and finally the young man arrived at the cave. The wise man was inside. Tell me what is in your mind? They left the cave, walked some distance and arrived at a mountain lake. The water was crystal clear. The young boy was so excited; he went in the water immediately. Suddenly, the young man felt himself seized by a strong hand at the back of his neck.
His head was forced down under the water, and held there firmly. Just as he was about to give up hope, thinking he is going to die there, the hand on his collar let go. Violently leaping onto the shore, the young Best option trades ever how to trade second successfully drew in his breath in heaving gasps. Oxygen flooded his lungs. His vision grew clearer, the hammering in his throat slowed down, his hands finally stopped trembling.
Now you found it… Do you remember, just a few minutes ago, how badly you wanted to take that next breath of air? When you want success that badly, you will have it. The Success is WITHIN you — it is not somewhere to be found or told, you just needed to realise that you already have it. He now realised the power of self and self-motivation and became successful in everything he did in his life….
You can read it here. I sunmmarised that the most important things to do when we set goals are: Setting Goals might be easy enough but how will you motivate yourself to complete that task? In my speech I mentioned about the Self Motivation Formula: As it can be seen from the formula, Motivation multiplies with combination of the above. When setting goals, you need to think about the above ingredients and decide on the ambition of your goals.
Best option trades ever how to trade second successfully never forget, The only thing that will stop you from fulfilling your dreams is YOU. We are humans not algo traders. Day trader, momo trader or swing trader, quality is always more important than quantity. NEVER enter in a trade without a plan and certainly NEVER enter in a trade because of FOMO Fear of Missing Out.
It enables you to act when there is a good opportunity. I personally like swing trades for number of reasons. I am a busy guy with number of Business interests. In swings, I generally look for good setups to enter in a trade, add, add more, hammer and exit. Perhaps starting small, testing the system and learning from it is the best for the new guys. I always have a plan while swinging. This plan includes where I enter, where I add, where I cover or if it goes against me where I exit the trade.
Before entering into any trade, I always know what my maximum loss will be NEVER change this during the trade! If it works against me and if it makes me nervous, I cut it out and move on to the next one. It takes years for change to take place and constant practise to maintain it. Most new traders are looking for that magic formula to enable them being profitable overnight. If anyone telling you otherwise is after your wallet.
I covered importance of setting goals previously in here. Setting goals for yourself will make you not only a better trader but also a more successful person in every part of your life. The goals you set should be achievable and measurable so it is crystal clear to you when they are achieved Best option trades ever how to trade second successfully you can move to bigger goals. If you are a new trader, your first goal should be not making profit but PROTECT your capital.
If you can achieve this, then the sky is the limit… We are humans. We all have Ego. Admitting mistakes is not in our DNA. However, one thing you will notice from successful traders is they all admit their mistakes to themselves and to others. We all do mistakes daily. Important thing is learning from those mistakes and try not to do them again.
It is a process and will take time. In trading, the same mistake can manifest itself in many different ways. The only way to learn is to experience it. You can ask, read or learn from others but the real learning only happens when you experience it in real life. The most important thing here is minimising the impact of your mistake. You can read more about trade size here. One of the most important things in life for me is constant learning.
I am a student of life and I love learning new skills whenever and wherever I can. The best traders can see and analyse these cycles and make informed decisions about their positions and type of stocks in their portfolios. They scan stocks accordingly. One thing you need to do to become a better trader is ADAPTING. You need to adapt to the market conditions and change with the market.
As a trader, you always need an EDGE. The change in market and your speed of adapting to that market is one way of having an EDGE. Always KNOW what you are trading. Research the stock or chart if more of a technical trader and always know why you are trading it and what is your EDGE against other traders. In bull markets, they tend to open weak and close strong. You are the only one emotionally involved with your position.
There is nothing extraordinary or superhuman in any one of those actions; only the fact that they are done consistently and correctly, and all together, produce excellence. Some are good holders of winners, but may hold their losers a little too long. Others may cut their winners a little short, but are quick to take their losses. As long as you stick to your own style, you get the good and bad in your own approach.
Action without vision is a nightmare. You have to have natural skills, but you have to train yourself how to use them. When markets become very quiet and range bound, they occupy themselves with a variety of activities, from sharing ideas with peers to conducting research. Traders who do not tolerate inactivity well inevitably feel the need to trade, often when there is no objective edge present.
For them, losing money is less onerous than experiencing boredom. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell. If you want to have a better performance than the crowd, you must do things differently from the crowd. Working longer does not necessarily equate with working smarter.
In fact, sometimes is the other way around. I have seen a lot of traders come and go. They have a system or a program that works in some specific environments and fails in others. In contrast, my strategy is dynamic and ever evolving. I constantly learn and change. It is a game of repetition where hundreds of small actions result in one larger result. But most importantly, it is a game of risk management. It is not the home run hitter who wins in the long-run. Rather, it is that strategist who devises the best long-term plan who ultimately wins.
While hitting home runs is sexy it is rarely a recipe for success in the investment world. Aim high, but play small. Over time, good risk management and patience wins. Power is no substitute for precision and patience. The same is true in the world of investing. Michael taught me about making your best judgment, being wrong, making your next best judgment, being wrong, making your third best judgment, and then doubling your money. A loss never troubles me after I take it. I forget it overnight.
But being wrong — not taking the loss — that is what does the damage to the pocket book and to the soul. The natural tendency is to keep pushing until the streak ends. But experience has taught me that a rest in the middle of the streak can often extend it. The main thing is to use it well. He feels totally responsible for whatever happens and thus can learn from mistakes.
And I am only right when I make money. Anyone can acquire the know-how for analyzing stocks. They are aware of trading psychology Best option trades ever how to trade second successfully own feelings and the mass psychology of the markets. People with ten million dollars are no happier than people with nine million dollars.
Some people seem to like to lose, so they win by losing money. You open your shop with the market opens and Best option trades ever how to trade second successfully it when the market closes well sometimes you do the odd pre-market and after hours trading, as well. There will be number of parts to this series so stay focused… Granted, there are numerous ways to become rich in the world today.
One can take a variety of approaches to obtaining this objective, from the traditional to the more unconventional methods. The reality of the situation is that in the 21st century, the days in which an employee stays with one employer—which has a dedicated interest in his forex trading signal software free download torrent her welfare—for numerous decades and retires with a sizable benefits package that is financially advantageous are decidedly gone.
There may be a few physicians or attorneys who are able to accomplish such feats, although the instances in which they do so are becoming more and more rare. Instead, it is necessary for people to frequently leverage a multitude of different means to obtain wealth. In this regard, there is a paramount importance in leveraging multiple income streams to build serious wealth. A diversification of business interests is often required to produce such an outcome, as an analysis of wealthy entrepreneurs reveals.
Perhaps one of the best examples of this notion is found in the life and legacy of Steve Jobs — one of my business heroes. It is critical to note that initially, Jobs began his career as a manufacturer of hardware—specifically desktop computers—when he launched Apple Johnson et al, Apple would go on to become one of the better known companies in the world today, years after the demise of its founder and charismatic leader. Whereas once the company was Best option trades ever how to trade second successfully for its computers, today it is much more better known for its iPhones and forays in the telecommunications industry.
Jobs made a dedicated effort to shift the focus of his company many times, and in doing so was able to successfully diversify its business interests. Apple has substantial business ventures in hardware, software, telecommunications and the entertainment fields in the form of movies and animation Kalla, ; as such, it is apparent that Jobs made a decision to diversify his business interests. Jobs choice to steer Apple into an incredible diverse array of business opportunities certainly indicates this fact.
When Jobs first started with this company, desktop computers were cumbersome things that were the focus of the computing industry. However, as computers gradually became smaller and more refined, desktops gradually became obsolete. Apple was able to offset the potential losses and revenues that these computing developments created by finding different lines of business to engage in. One of the primary ways in which it was able to do so was to tap into the fledgling MP3 market with iPods Finkle and Mallin, Prior to its advances in this line of business, CD players and those that could play MP3s were fairly dominant in this market.
Under the direction of Jobs, Apple was able to revamp the marketplace by making iPods more compact and equipped to carry more songs than these other options. More importantly, the emerging market that it was able to help pioneer allowed it to shift its focus away from desktop computers and towards iPods. Currently, the company is much better known for its innovations and placements of iPods than it is for its traditional desktops, which allowed Jobs to continue to build wealth while focusing his interest from one line of business to another.
In many ways, Apple was able to achieve the same degree of versatility which kept its business from getting stagnant via its entry into the telecommunications market. Nonetheless, these gadgets that Jobs pioneered still serve a primary function as a means of communication in a manner that is much more direct and personal than that which conventional computers are able to provide. Telecommunications is a distinct industry from that of personal computer. Jobs realized early on that the key to procuring personal wealth and that for his company was to simply expand and create as many different revenue streams as possible from different lines of business.
He was highly successful in this endeavour. An analysis of the business ventures of other entrepreneurs reinforces the viability of this concept as well. In some instances, there are wealthy people who have diversified their revenue streams to the point where that of some are completely unrelated to that of others. Let me give you Best option trades ever how to trade second successfully unlikely business example.
Personally, Combs was able to internalize this concept Best option trades ever how to trade second successfully enter into a number of business ventures that were completely unrelated to music. He has open forex platform metatrader charts in multiple films and has made a number of different television appearances. Additionally, although he started in the music business as an executive, he eventually became an artist and released several albums.
The entrepreneurial spirit he exudes transcends entertainment both acting and musichowever. This restaurant has locations in both Atlanta and in New York City, my followers from these cities should already know the brand. What is most notable about this fact is that there is no correlation between working as a successful music executive and becoming a restaurateur, which Combs has done. These two industries are unrelated. However, it is clear that Combs engaged in both of them simply as a way to diversify his revenue streams.
His forays into the fashion and clothing industry also underpin this notion. Sean Jean itself is highly diverse, with numerous styles and subset clothing lines for everyone from teens New York Daily News, to grandparents. Combs also has numerous real estate ventures. In summary, the true takeaway from an analysis of the sort of diversity of revenue that both Jobs and Combs were able to create is that there is a degree in autonomy in doing so.
It is best for one to have such a diversification so that those revenue streams are actually independent of one another. That way, should one ever fail, one is greatly supported by the others. Additionally, the failure of one source of revenue should not metatrader 220 ink the success of another autonomous revenue source.
In Part 2, I will go into my own experiences and discuss why I found business diversification as one of the most importanrt part of my personal and business growth. For those who would like to read further, please find below the references: References. With Apple, the medium made the message. Steve Jobs and Apple, Inc. Journal of the International Academy of Case Studies. The innovative success that is Apple, Inc. New York Daily News. Sean Diddy Best option trades ever how to trade second successfully launches new clothing collection with daughters for Sean John brand.
It is part of the game. I wanted to compile Top 5 most important mistakes that traders including myself do and what to learn from them and how to avoid making the same mistake again. The most important thing is to realize the mistake and then take appropriate action to correct it. If you are in a new relationship, you know that relationships require commitment and hard work! Trading is like relationships. You need to learn, absorb as much as you can and work on it.
Things take time, trading is not a get rich quick scheme, in the contrary, it requires discipline, hard work and total commitment to make it a success. Tip: A trading diary is a good way of recording your lessons in trading. So you can go back and see what works what not for you. In time, you will see the changes and improvements which will motivate you and make you a better trader. This is a common problem for newbie and also for experienced traders.
Unfortunately, human nature is greedy. We are never satisfied with what we have this is also part of what advances humanity as a whole. Then we review the day see that we have overtraded to make more money. Or perhaps over traded and took more risk to be able to finish the day metatrader 4 language reference website green and Best option trades ever how to trade second successfully of the time you will end up more in red.
In some circumstances, some folks are scared to take great trades and giving up easy potential profits because they are not willing to enter a trade when they see a good opportunity undertrading. Both of these can manifest themselves in variety of different ways. I chat to many traders and see this often including myself.
Tip: The best way to overcome overtrading or undertrading is to have a trading plan for the day. You can write this down or tell to yourself that what do you expect to achieve from the trading session. This of course very much depends on the overnight scans and also morning action, so your plan will change according to this. Once you reach your trading goal for the day, make sure you are not starting to take trades are much riskier than your normal setups.
When you are in Euphoria from your winnings, you tend to think you will win with any given trade absolutely not good trading habit. This happens to me a lot and lately, I start to leave the session all together to give myself a small break to come back to planet earth! This way, I can think more sensible and take calculated risks again instead of any risk! Easier saying then done, still working on this and leaving the session for a break and go for a coffee or drive is my way of coping with it.
Everyone is different, whatever works best for you. It still amazes me how patient we can get in a losing trade and not cut it off and take the loss — unless it is a planned swing trade it is completely different story and if we are winning how impatient we can get…We just want to take that profit although you know that it is too early! This is a psychological phenomenon. If you are wrong, human brain tries to find reasons why you are right i. Market is acting against you and you are wrong.
If you are winning, Fear of Missing the Profits, kicks in and you look for any excuse to get rid of that trade so you can proudly say you made money on that trade. Tip: Patience is a learned process. It can be developed as a trading habit. I frequently make very good money on that patience perhaps most of my largest wins come from patient trades. One important thing here is not mixing patience with hope. They are completely two different things. Patience is acceptable when you have an edge.
The edge that gives you confirmation and conviction of that trade. Otherwise simply let it go…. I have written about size control in my blog a few times. In my opinion, controlling trading size is the BEST thing you can do in trading. Most traders take too much risk with trading size compared to their account size. I am seeing too many especially new traders smoked with only one or two trades simply because they played too big! Trade size is directly correlated to the risk of that position.
The more size you have, obviously the more risk you are taking at a given trade. In this way, you can just risk the profit and have a nearly risk-free trade. But we all know that, life is unfortunately not that easy and trades go against us. In this case, the importance of the trade size once again come to play…. Tip: For me it is very easy. Not later, do it now!
Like the bees programmed to protect the queen bee, your number one job as a trader is protecting your trading capital. Forget about accepting responsibility for your own mistakes, some traders do not even realize they have made a mistake see some AVXL cult longs. Realizing your mistakes will make you one step closer to become a better trader. Accepting responsibility for your mistake is great for you for two reasons: 1 You know what you have done wrong so you will hopefully learn from that mistake 2 Now you know what works instead, next time you will use that to your advantage to make a successful trade.
I am unfortunately seeing a big blame game between traders. A wrong trade is never their own fault! You are responsible for your own actions. It is all good that we share information via internet or other mediums but it is ENTIRELY your responsibility to enter a trade or not. If you do, you should have a PLAN in the first place — why you entered in that trade.
Have you executed that plan to A to Z? If the trade went against you what was your risk mitigation plan? So next time something goes wrong, first understand what went wrong, then accept your mistake and think about what you learned and what you will do about it next time. I also strongly suggest to write this down we tend to forget mistakes easier than our success. I always tend to take responsibility and announce my mistakes to my friends and followers. I like doing this because I am learning something new every time from my own mistake.
I also have the upmost respect to people who do the same in our community. Trading Psychology and emotions play the biggest role in your daily trading. Let me elaborate on this more in this article. Van Tharp, a leading psychologist, is very well known for breaking down the trading process into three categories that affect traders. He categorises them by importance as follows: The fact that trading strategy is the least important factor in Dr.
In one of my previous articles we looked at Fear of Missing Out FOMO and how it can affect your trading. Experienced traders know that the greed makes you to try to take too much profit when it is not there and you end up with less profit or loss. Similarly, fear causes you to cut your positions quickly in loss or less profit where you could make much more.
We all have an Ego. We all want to be right. The trader focuses on winning the losses back very similar to a loser gambler attitude and ends up losing more money. The final aspect of emotional trading is over trading. This mainly happens after big wins and the trader greed kicks in for more profits. The whole situation ends up with losing the previous gains or accumulating big losses in the process. This is a Greed based human behaviour that can be seen in experienced and inexperienced traders.
Difficult to control but not impossible. So how can we cope with our own Psychology and Emotions? Easier said than done! The trading algos are much more profitable than humans when they are using a profitable strategy for one reason only, they cut out the emotion from the equation! As a human trader, your only weapon is discipline. You might know metatrader language manual typewriters what to do but applying discipline to your trading will require time and experience.
If you are new to options, please start from part 1 here. In this post, we will specifically look at Butterfly Options Trading Strategy. Please note that this is by no means a complete strategy guide for options or butterfly type of trades, just the strategies that I utilise when trading options. You also need to make sure there are no major news or results are Best option trades ever how to trade second successfully before the expiration date so there is no big change in the price of the underlying stock.
A typical butterfly trade, consists of at least 3 options trades to be done at once. Just like statistical arbitrage trades, this means that you will lose in two options trades and win in one option trade. As you rightly guessed, your winnings should be higher than your Best option trades ever how to trade second successfully losses to make money on this strategy.
Also note that, both your risk and reward are limited in this type of strategy. The trade will be a loss only if the market price of XXX was above or below the max loss point at the JAN Expiration date. In other words, the net premium paid at open is the maximum possible profit that the investor can gain from this strategy, and the difference between the net loss reaped between the long and short calls or puts minus the initial premium paid is the maximum possible loss that the investor can incur as shown in the example above.
The maximum profit on a Butterfly Spread is at our Short Strike, in the example above, it is the Strike. Of course if you wish to hold it to the expiration date, you can. But any news or major event can change the price of the stock dramatically and it can turn into a loss! Another way of looking how to profit on a Butterfly Options trade is through the reduction of Time Premium of our Short positions during the 15 to 21 days period. However, the amount that the position is In The Money, the value of our Short Positions, will be almost all Time Value.
As we get closer to Expiration, we will be able to sell our Long positions for about what we paid for them. However, it will cost us less to buy back our Short positions, and we end up with a profit. In essence, we buy the Butterfly at a low price, and then sell to close it later at a higher price. For those of you using Interactive Brokers IBthey have a quite a good but not excellent Options Strategy Builder comes with their TWS.
It is relatively easy to use tool where you can create spreads and analyse potential profit, exit, break even points. You can also create multi-legs for even more complex options strategies. I suggest you try and see yourself. News: There are no major news or expected, no earnings news, no mergers or acquisitions, no major sector movement for the chosen stock. Time in Trade: days. Hence the potential profits will be low. Q: When should I use this strategy. A: When you think the price of the underlying stock will be stagnant or will change very little before the option expiration date.
Q: What are the advantages of Butterfly Options Strategy? A: 1 Good profit potential with low cost entry 2 Risk and Reward parameters are set before entering in the trade 3 Quite a large number of underlying stocks can be found to utilise this strategy. Q: What are the disadvantages of using Butterfly Options Strategy? A: 1 Depending on your broker, larger commissions might be applicable to these type of trades 2 This strategy is more appropriate for experienced traders who can watch the markets during trading hours and thoroughly understand the potential risks and rewards involved.
I hope this helps. Let me know your comments or questions on twitter MonacoTrader. I hope you are all having a great weekend. A blogpost about something different today. Living in Monaco comes with its perks. After all, Monte Carlo is the place where it all began. The funny thing about Monaco is Monaco citizens note not residents — means two different things are not allowed to gamble. This is almost ironic, basically giving the message that Monaco will entertain you the max, take your money and then will send you home where your bank manager is waiting to have a word… a bit like Vegas — perhaps a bit more classy way of taking your money.
And that is exactly what happens in the Monte Carlo Casino. I socialise and go to the casino quite frequently. The only game I would ever play to socialise with the crowd in the casino is Roulette. There are number of reasons for this, which I will explain below. We are trade forex like a bank trader esportivo in rural France.
You are looking at a house lit with oil lamps and a man is working hard on advanced probability theory. This is the Martingale Betting System. It is originated with the betting on heads or tails using a coin. In classic Martingale system you double up the next bet after each loss and as soon as you win you reduce your bet the initial amount after each win. You will never leave the casino penniless with this system — the winnings will cover all your net losses of the previous bets all IN THEORY!!!
Let us use an example to understand how it works. This means, as a player, you can bet to the colour RED or BLACK. If you win you will get win double your bet. To win you need RED colour any other colours such as BLACK or GREEN means that you will loose the bet. Best option trades ever how to trade second successfully probability for both are exactly the same. If you happen to lose your 2 dollars, you must bet 4 dollars the next spin. If you lose again, do not give up!
Bet the increased amount of 8 dollars! As a result, you will always have a minimal gain. Sooner or later you will get the colour of your choice and you will at least win the minimal bet amount. As the old sayings go, in the long run the casino will always win. Because they have an advantage, the GREEN 0 to their advantage. Or you will hit the table maximum. Some do but they will always have a maximum limit to stop you winning. The more you play, the more likely you will get this in a row. Trust me, it WILL happen!
Once I first discovered Martingale Betting system years ago, I straight away wrote a software programme to automate Martingale and make a million! It worked successfully and bet exactly how I wanted but at the end of the day was trying demo accounts only of courseI was always the one who was losing at the end of the day. It is simple mathematics. In the short term, the system will very likely to work. So if you want to impress your friends or family, it is a great trick in the casino. Take your winnings and never play again that day.
One thing is for sure, trying Martingale in a demo account is so much fun. You want to test it? The aim of this article is to share some of my knowledge and expeirnce on how I use goal setting to my advantage. The research about goal setting is popularised by Locke in LOCKE, E. Toward a Theory of Task Motivation and Incentives. Perform3, p. I like taking a complex problem, analyse it and then slice it into digestible chunks.
This means that I have an overall GOAL but also interim goals to get there. This in my opinion is extremely important. Many people set big goals for themselves and then get demotivated as the task is too big to achieve. Setting big goals is great and important but you should also plan how to get there and have interim goal to achieve this, get motivated and conquer the overall goal.
I use this methodology daily in my private life and also business life. In business, I have multiple business interest. In each model, there are number of set golas needs to be achieved so I can decide to move to the bigger position or re-evaluate the business for efficiency and consistency and modify my own goals. In trading it is the similar story.
I have weekly, monthly and yearly targets that I set as my own goals. If the goals are not reached after a certain amount of time, then I keep re-evaluate and set a different path to achieve the same outcome. In my personal life, I set goals to learn new skills. Each year, I set a goal to achieve something non-business related. When we are setting goals, the important thing is having achievable goals and not to have too many goals at once this will affect your focus and making sure that you have identified measurable outcomes.
You need to know when your goal is successfully achieved. If you for example say this month I will become better in trading, there is no measurable outcome in this. It means you wont loose money? If so how much more than normal? Think about this before setting any goal. If you are new to goal setting, I strongly suggest writing them down somewhere so you can go and check your progress. Once you get used to goal setting, you will probably not need to write them down anymore as they will become part of your everyday life and keep you in the direction of your set goals.
Once you start to achieve your goals, this will become almost a habit and will push you to set more goals in your life hence more achievements to follow… I hope this is helpful. If you like the article or if you have any comments, please let me know on twitter monacotrader — I am interested in your feedback and your achievements using the methodology above. The most important three fears that often manifests themselves are: Fearing of Missing Out FOMOFear of Loosing Money FOLM and Fear of Being Wrong FOBW.
In this article, I will specifically focus on FOMO, what it is, how it can affect your trading and how to prevent it as much as you can. Fear of Missing Out is a well researched psychology topic that is not only true for trading but also for every day life. If you want to understand FOMO better, I strongly suggest reading two research paper by Kernis and Ellion They argue that self-determination theory SDT a macro-theory of human motivation provides a useful perspective for framing an empirically based understanding of FoMO.
We are following each other on social media twitter, facebook, instagram, etc. We are being sold ideas and concepts every single minute of the trading hours and pre-trading and after-hours. We follow each other, we hear news that this is the must have stock or the stock that needs to be shorted immediately. We see so many people are doing the same thing and we feel left out the feeling is: everyone will make big bucks and if I am not doing anything! I will simply loose out on a great trade!
This is a fact! If you can accept this fact then you have ultimately accepted that you will miss some trades this is perfectly OK! The real rule to be successful in trading is to have a working strategy. Everyone trades differently, no two traders trade exactly the same way so your strategy will be different then my strategy however there might be similarities that puts us on the same set i.
All traders struggle with FOMO time to time. Trading experience of course helps with this immensely. My simple rules that help me to stay in check are: The Action Plan: Always have a plan before entering in a trade. Ask yourself what is your edge for entering in this trade. You are not going into this trade just because some guru or a friend thinks it is a good idea. KNOW your trade and KNOW what you want from it EVERY SINGLE TIME YOU TRADE! Be Disciplined: As you now have an action plan, the truth is executing that action plan is more difficult than to have an action plan in the first place.
This requires discipline and determination. You should try to do the same as much as you can. Learn to be happy with your achievement: We all want to make a killing from a trade. Reality is trading is extremely difficult. Once you have executed your plan effectively, either you made a profit or a loss. Either way, you have done what was necessary for the trade and successfully filtered out the noise — well done on that.
Even though it was a loss, you cut it on time as per your action plan. This is great news. If your trading strategy is profitable, in the long term you will make serious money from trading. As you are following your rules, you WILL be consistent and you will achieve consistency in trading. Skip to primary content Home. Posted on October 16, by MonacoTrader.
My speech started with one of my favourite stories, let me share it with you here:. In the middle ages there was a young man who was living in a mountain village. He immediately decided to go and find the wise man who could finally answer his question…. The journey took several weeks and finally the young man arrived at the cave. Young man sat down there for a few hours. I then continued my presentation with Triangle of Success. To be successful in anything we do, we need to have 3 key ingredients: Skill, Attitude and domain knowledge.
I have written an article about importance of Goal Setting in the past. I sunmmarised that the most important things to do when we set goals are:. Writing them down It is scientifically proven that you are much more likely to complete the goal if you write it down and make it tangible. Visualising Yourself Completing That Goal Successfully. Setting Interim Goals so you divide a big goal into digestible smaller goals.
Evaluating Your Goals There are thousand ways to climb the same mountain, if one way is not working — find another way. Achieving your goal and Rewarding Yourself Part of your motivation. Setting Goals might be easy enough but how will you motivate yourself to complete that task? In my speech I mentioned about the Self Motivation Formula:.
I — Instrumentality How likely is that I will be rewarded or punished. As it can be seen from the formula, Motivation multiplies with combination of the above. Posted on June 28, by MonacoTrader. Here is a few tips to help you to become a better trader:. Cash is a positon too! Most new traders think that a trader should be trading all the time, never miss a good opportunity! If you can achieve this, then the sky is the limit….
Admit Mistakes and Learn From Your Mistakes. Posted on May 27, by MonacoTrader. Chambliss, Professor of Sociology. Rule number one : most things will prove to be cyclical. Rule number two : some of the greatest opportunities for gain and loss come when other people forget rule number one —. Posted on February 28, by MonacoTrader. Let me make one thing very clear, for me, trading is a business — not a hobby.
There will be number of parts to this series so stay focused…. Granted, there are numerous ways to become rich in the world today. For those who would like to read further, please find below the references:. Posted on January 18, by MonacoTrader. We all do mistakes. New traders expect too much too soon…. Failing to accept responsibility against your own mistakes.
Thank you for your time and I hope you found this useful. Posted on December 27, by MonacoTrader. He categorises them by importance as follows:. The fact that trading strategy is the least important factor in Dr. My personal advice is as follows:. The start point should be working on your ego. When you are wrong, admit that you are wrong. This will be difficult at first, but in time you will see the benefits of doing so.
You will be able to see your mistakes. What went right and what went wrong with that particular trade. Have a trading diary. We are humans, we forget! My suggestion to especially new traders is having an excel sheet and note down every single REAL trade that they have done not interested in paper trades as they do not reflect the emotion of losing real money. Make sure to have a separate column for your notes, note down everything why you entered in that trade, why you exit?
Take as much notes as possible so you can go back and see what happened to your trade. What went well and what went wrong. The pattern will start to emerge when you have at least or more trades, you will be able to see the bigger picture. I Cannot stress this enough, HAVE A TRADING DIARY even if you are an experienced trader. Once you have a working strategy, follow it to the letter!
It is not always easy to do so, but you will get better in time if you apply discipline. Also make sure to have some trading goals my article on setting goals can be found here. Set your expectation accordingly! Trading is not easy, do not expect easy money. Know that you will have to work for your money. A lot of hard work needed to be a successful trader.
Find out what works for you. Be honest with yourself. If you are overtrading, what is the best thing to do? Some people can control themselves in front of the PC, some simply cannot. After a successful trading session, I often take a coffee break to clean up my mind and more importantly my emotions. If it is a particularly good trading day, I go for a drive in my car. Whatever works for you.
Perhaps go dip in the water, have a coffe, drive, call a friend, etc. Enjoy what you do! Yes, trading is hard work but there is nothing more satisfying then knowing your strategy works, you were disciplined and executed that trade according to the plan or avoided that big loss successfully. I hope it helps. Have a great weekend. Posted on December 19, by MonacoTrader.
In the next few weeks, I will cover some of the best options strategies that works for me. LONG Call Butterfly Options Trade Example. So just to summarise:. My Ultimate Trade Setup for Butterfly Option Trades:. Time to enter the trade: 35 days until 25 days prior to expiration. You Best option trades ever how to trade second successfully hold it until expiration if you wanted to perhaps waiting for expiration and not take the profits when available is riskier strategy.
Have a nice weekend. Posted on December 13, by MonacoTrader. If it sounds too good to be true, it generally is! If you like the article, let me know on twitter. Posted on November 28, by MonacoTrader. This article is not intended to being just another boring article about setting goals. Once you start to achieve your goals, this will become almost a habit and will push you to set more goals in your life hence more achievements to follow….
I hope this is helpful. Posted on November 21, by MonacoTrader. Fear of Missing Out FOMO :. According to SDT effective self-regulation and psychological moods are based on the satisfaction of three basic psychological needs:. We all know that if everyone is doing the same thing, the trade becomes crowded and thinks start to turn for the worse…. My simple rules that help me to stay in check are:. The Action Plan: Always have a plan before entering in a trade.
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