Making Your Exits Easier

There are two schools of thought when it comes to exiting losing trades. The first says you should never make the decision yourself – for any trade! This school says that once you’ve entered a position, you should only let the market take you out. This holds for both directions: a losing trade should see


How the sharemarket works

The Australian sharemarket, known as “ASX”, is our nation’s securities exchange. The ASX is the key means through which investors and traders can buy and sell shares within Australia. The Top 200 index The S&P/ASX 200 index is the main benchmark for the Australian equity market. While there are over 2000 shares listed on the


Stay open to change

Believe it or not, stress can help us become better traders. Famed trading psychologist, Brett Steenbarger, is an expert in using normal behavioural psychology and linking it to our trading behaviours. Because, after all, trading behaviour is another form of human behaviour. Steenbarger has investigated the role of intensity, distress and change in the behaviour


The danger of overconfidence

Famed trading psychologist Bret Steenbarger has written countless articles on the most common emotions traders feel that causes damage: panic. However, there is an emotion that exists right up at the other end of the scale that can cause just as much damage to your trading portfolio, and that is overconfidence. Overconfidence overview Overconfidence is


An introduction to regressive trading

An introduction to regressive trading The word “regressive” can be defined as “reverting to an earlier condition or way of behaving”. When we are trading in a regressive manner, we are looking to take advantage of a counter-move in an already defined trend in the hope that price action will soon revert back to this


Beware being an early bear

As we’ve seen, stockmarkets seldom go up or down in a straight line. There are inevitable “bumps” along the road which investors need to contend with. The great trader, Jesse Livermore, once said “You’ll always find lots of early bulls in bull markets and early bears in bear markets.” We contend that you’ll often also find lots


The key to your survival in the market

The market can be a terrifying beast at times, sending the heart rates of investors soaring as happened only recently during the GFC. Learning to survive the market with all of its uncertainty is crucial to becoming a successful trader. One of the most important rules of trading is, don’t put all your eggs in


Getting your trading consistency back

  Renowned trading psychologist, Brett Steenbarger, gave some advice to those who seem to have fallen out of their trading groove. One trader wrote to Steenbarger about this very problem. He was once a successful, consistent trader who had 48 winning months in a row – without one losing month. Then, one day, the trader


The Mind Matters

Most people that get into the market have the idea that “traders” are in and out of the market every minute, making millions of dollars. In fact, this is what attracts most people to the market in the first place. They think it’s all about getting rich quick. The truth is that your success in


The Definition of (Trading) Success

If you hang around traders talking shop very long (and being honest), you will hear this story repeated endlessly. Many people who have devoted themselves to becoming a professional trader have experienced success in other fields before they came to trading. They know how to trade when the pressure of risking capital is not part