Another beautiful paradox
Focus on, enjoy and love the execution process and outcomes will be positive; focus on the outcomes and the opposite will happen; they will be negative over a large sample of trades. This is yet another trading paradox, the degree to which you focus on outcomes will be the degree to which you will be […]
The inner game of the trading process
For more than 10 years I have had thousands of ‘wannabe’ traders come along to listen to trading methodology demonstrations, with the great majority saying: “Just give me a trading system that is good enough for me to make money—I have no problem with the psychological side of things.” Wrong, wrong, wrong! The psychology, that […]
How do you currently think?
One of the major challenges that unsuccessful traders need to overcome is to recognise or admit that they are making trading errors. Even though their trading results will always be a stark reminder that they are not making money in an environment that is an endless stream of opportunities to enrich ourselves. (Trading in the […]
Discipline in trading
Following on from the interview with Kel Butcher the week before last and last week’s topic on applying knowledge, I would like to discuss the importance of the role that discipline plays in trading. Discipline is a critical technique that we use in life to build and ingrain habits. We require discipline to engender change […]
Application of knowledge
Knowledge is mandatory to be a successful trader but knowledge alone does not guarantee success, much more is needed. The application of new knowledge requires that repeated experiences of the new awareness be executed many times over. Discipline is required to repeat the experiences in the face of fear and of unsuccessful individual outcomes. A […]
An interview with well known author and trader Kel Butcher
In this weeks blog I interview author, trader and traders mentor Kel Butcher. Kel started his trading journey way back in 1989 and has been involved in the markets for just on 20 years. Kel is the author of A Step-by-step guide to buying and selling shares Online and 20 Most Common Trading Mistakes and […]
Superannuation and the true cost of fees
The Australian superannuation industry has been in the news again this week with researchers Dr David Ingles and Josh Fear from The Australia Institute revealing some very interesting numbers on the industry. Their findings and research make interesting reading. I have extracted some information from their findings which add to my persistent calls for people […]
Achieving profitable returns over time
As a believer in the philosophy that ‘timing the market’ is more important than time in the market (although both are necessary), we must endeavour to learn a number of new trading specific paradigms and prevent some of our old societal paradigms from impacting our trading. I’ve written about some of these paradigms in previous […]
Using leverage in your portfolio
Last week we explained the concept of leverage and the benefits and drawbacks the use of leverage can have for the average active investor. This week we would like to focus on the use of CFDs as a leveraged instrument for increasing exposure to the stock market and share some stories and suggestions on how […]
Adding the use of leverage to your portfolio
Much is made of the use of leverage in trading to increase returns on both investment and trading portfolio’s. But what exactly is leverage and how can we use it effectively to improve our returns? The big issue that is usually highlighted but little understood is that leverage is a double edged sword. Just as […]