This post was originally published on this siteFinancial markets are confusing–there’s no doubt about that. Sudden reversals, spikes, dull dead periods exploding into panic, fakeouts and fakeouts of fakeouts… the list goes on, but traders and investors quickly discover that reading the market is far from easy. Wouldn’t it be great if there were some […]
There are a few practices that consistently separate winning traders from the losers. True, there is an incredible diversity of winning strategies, approaches, and personalities, and winning traders do and act in very different ways. However, we when look at and talk to consistently profitable traders, we start to see a few common threads. There are some things that winners do that losing traders often ignore. Keeping a trading journal, of some kind, is one of those practices.
For most traders, the valuable lessons come from thinking about what you are or are not going to do around these reports. There are a several possibilities, and, as always, it is important to understand the tradeoffs. Every choice you make in trading is like moving a pawn in chess: you strengthen something at the cost of weakening something else, these seemingly tiny moves can make all the difference between winning and losing, and, in most cases, you can’t undo what you’ve already done.