Trader Mindset

Subscribe to the show When you go long, you want momentum in your favor, not against you. The worse thing you can do is buy a pullback to support and try to sell at resistance. This is small-minded thinking. Wait for the instrument to clear resistance, then buy. There is no upper boundary to the price and prices are relative. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show When you're not settled with where you are in your trading, you can find yourself doing things that don't serve you. That's because you want to be somewhere else as opposed to being present. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Ace Greenberg would sell any longs that were down coming into Friday's close. Some traders offset trades in 15 minutes if they don't show a profit. Takeaway: good trades make you money right away. If it doesn't act accordingly. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show There are 2 traders. One has 15% returns and trader #2 generated 25%. Who did better? You can't just say that trader #2 has done better in this regard. We don't know what type of risk #2 had to take on to get those returns. We have to focus on the getting risk-adjusted returns. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Sometimes you need a pep talk or to hear the voice of reason. Sometimes it's not easy to see the 30,000 foot view. Sometimes you can't see where the smoke is coming from when you're standing on the fire. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show "There's nothing you can do that can't be done. Nothing you can sing that can't be sung. Nothing you can say, but you can learn how to play the game. It's easy." -John Lennon Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Think of it like a never-ending culturing of a pearl that is your life. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show It takes many years to develop superior trading & investing instincts that you can count on. Too many traders and money managers unknowingly exhaust themselves day after day by deeply engaging with a process that is both inefficient and based on guesswork. A good first step to fix this: stop reading headlines for trading ideas... Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Like a lot of trading, preparation is a process - of elimination. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show It's an ongoing process... Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show The time is now. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show When the instruments in your portfolio are highly correlated you can make bank. When they reverse, they will do so at the same time and you will get hit for an outsized loss. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Chasing the market is a person's inability to deal with regret. Adding to winners is a process where you have a set of rules to add risk when it makes sense. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show When you don't have massive amounts of data on your trading, you don't know the probabilities of winning and losing. If that's the case, the trades you put on are nothing more than a gamble. Be careful not to place large bets on anything - earnings, Phase III clinical trials, or elections - your feelings are not facts. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Set your goals around processes that you can replicate day after day. Setting a goal around an object is passionless and not inspiring. It's your behavior that predicts where you end up in life. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Another good reason to have orders to add or remove risk - surprise announcements. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Sometimes markets jump for unexpected reasons. You can have an order sitting above the market to liquidate your position if the market goes parabolic. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Looking at the chart is just the beginning. It's not the map you think it is. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show From time to time, names you're watching will move sharply before you have a chance to add risk. That means missed opportunities. Names that you're already in will move against you - also before you have a chance to act and keep your losses small. Then you're stunned and frozen and you begin the process of negotiating with yourself. Either way, you're losing and there's not much to say about it despite your reasoning. If either of these scenarios sounds familiar, you can use Stop orders accordingly to hedge against such moves. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Frustration is the appetizer to a meal called despondency. If you are unwilling to feel the feeling of frustration regularly, you invite stronger feelings in the future. Use regret to help you make better decisions today. If you want to be a professional PM or trader, losses are a part of the business. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show When bad news hits the tape and the stock doesn't sell off, you have a good long trade with more room to go. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show They are related but not the same by any measurement. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show From time to time, you might find an equity that traders and investors are betting against, but they prove all the naysayers wrong. If that stock has high % short interest, and it starts to trend higher, you have the potential to penalize the naysayers who will all have to pay you to cover. Look for high short interest and uptrends. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Great traders are using technical analysis to protect their capital which is job #1. If you know your risk, the entries are not that important. Most amateurs focus on the wrong things for several reasons. They don't have solid goals, they are too short-sighted, and they are not friends with their feelings. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show When you're doing well, ask for more money to manage. Ask for a free Bloomberg. Ask for forgiveness of desk rent or fees. Ask for a higher payout on your trading profits. If you don't ask, they own you. If you don't ask, it's knot going to just show up. You have to ask for it. Make your case and have confidence in yourself. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Bet size determines what you make and lose. How did you come to decide your current bet size? You probably guessed and just chose one. You can use Kelly Criterion to figure out the best size after hundreds / thousands of trades. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Sidestepping the large losses will do wonders for your P&L and also build enormous trust between you and your clients. They've already lost a great deal of money on their own or with another manager. Admit your wrong and get out. The client will forgot your being wrong about a name over time, but they will not forget a 40% hit. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Using Relative Strength for stocks and seasonality in commodities are about as far as I'll go in talking about what you can rely on. Most others are unreliable as stand-alone indicators. If 'price' is the input, the indicator only helps you see or confirm what you can already see in the price itself, so just use the price. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show You are programmed to behave the way you behave and that makes the results you are getting in your life predictable. The mechanical part of that is how you allocate the funds you manage. You can also backtest running several systems at the same time. Yes, you can do that... Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Don't worry about what it looks like. If you keep your mouth shut, you won't have to worry about what everyone else will say when you slip and get up. They don't slip because they don't have the b*lls to do what you do and take chances. They also stagnate and don't grow. Stay away from these losers. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Just give the money away ahead of time. At least you can steer it to a cause you care about, not a winning trader. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show This includes turning off the tv and having silence. If you're lonely, you know what you can do... Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show When brokerage masquerades as prop trading: be careful for what you wish for. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Some traders succumb to buying services and research, or worse, chat rooms. Traders need to be self-contained units. All the decisions that go into a trade need to come from a goal that you set for yourself and one that you have a deep emotional connection with. Traders are leaders and need to be decisive. Subscription newsletters don't teach you to manage risk. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show You are programmed to behave the way you behave and that makes the results you are getting in your life predictable. In order to change that - if you are not satisfied with your results - you need to change that programming. I've seen people that you would otherwise count out make enormous strides in their lives and attain great success because they got clear and set goals, eliminated non-productive activities, reset their paradigm, and executed day after day. When you focus on 'process' you will get the results you want. If you focus on the results first, it is also predictable that you will lose interest because you have no emotional attachment to what you're doing. An example of this type of mindset is setting a goal such as making a certain dollar amount from your investing or trading. The goal should be about attaining that dollar amount from the result of specific behavior - the behavior is the goal - not the dollar amount. And when you attach a powerful emotion to your behavior, the odds of your hitting your goals change to greatly in your favor. You can achieve the success you imagine if you want to - it comes down to relative strength. The question becomes "are you going to be remain uncomfortable sitting in your current dirty diaper getting the results you think you don't want," or "are you going to be uncomfortable making the changes you want?" You get to choose what type of discomfort you want in your life. "And the day came when the risk to remain tight in a bud was more painful than the risk it took to blossom." - Anaïs Nin

Subscribe to the show In order to affect the change(s) you need to make, you need to get out of your comfort zone and create new habits around that behavior. From what I've read, creating a new habit is going to take approximately 2 months. Take it one day at a time. Next thing you know, you'll have a week of new, more productive behavior behind you. Of course, you need to have a plan that you are emotionally connected with to drive you. Reach out if you're having trouble getting connected to your goals. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Play your game - don't try to become someone or something else when the markets go against you. Stick to your knitting - the market will continually morph to try to get you out of your mind so that you betray yourself. I misspoke on the show - the Russian hockey coach who succeeded Anatoly Tarasov was Viktor Tikhonov. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show You have the right to 'not' participate in the markets - that's an edge. It's a good time to reach out to potential clients and gather assets to manage / trade. When markets are under duress, so are the people who have substantial assets at risk. They need help and you're just as good as the next person to provide it. You just have to believe that you are... Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Upside movement for long-only traders and investors can induce you to buy back into a falling market. This is your emotional system running your trading system. Even pro traders have strong emotions, but they don't let them undermine their trading. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Metamorphosis is a part of life, but not when markets are in turmoil and you are bored. Becoming a different trader because your main model is out of favor for the time being is a path to losing a great deal of money. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show If you jump the gun, you're satisfying an emotional issue not a financial one. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Let go of what's not working and watch your results take off. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Specialize one style of trading on one asset class. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show When you stick to your knitting, you make more money. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show If you have blow out losses, it could be because you are reluctant to lose smaller percentages of capital. Sit on your hands for larger gains. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Why did you make the money you made? Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Look at where your returns are clustered. Work backwards from there... Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show You get paid to execute, but stay in your lane. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Winners rotate. What made you money through the end of August, might not be the same names worth being in going forward. Be careful trying to buy the same stocks or contracts after you get stopped. Click here to get your free copy of The Inner Voice of Trading audiobook.

Subscribe to the show Poor trading is rarely about not knowing what to do - it's in the poor execution - and that's an emotional and psychological issue. Know thyself. Click here to get your free copy of The Inner Voice of Trading audiobook.